Trading of KLK, IJM and IJM Plantations suspended


KUALA LUMPUR: Trading in the securities of Kuala Lumpur Kepong Bhd (KLK), IJM Corporation Bhd and IJM Plantations Bhd has been suspended at 2.30pm on Tuesday.

According to their statements to Bursa Malaysia, the voluntary suspension was pending an announcement.

The shares rallied in the morning session ahead of the suspension which could likely involve the sale of IJM’s plantation business to KLK.

KLK was last traded at RM21.76, up 16 sen. IJM rose 11 sen to RM1.90 and IJM Plantations jumped 26 sen to RM2.46.

In the nine months ended March 31,2021, the plantations business was a huge contributor to IJM Corporation, which is involved in infrastructure, plantations and property.

CGS-CIMB Equities Research said in its recent research note IJM Corp’s reported net profit of RM432mil in the nine months included RM85.2mil gain on disposal of investment properties and RM82.4mil forex gains for the plantation division.

“Stripping these and other one-off items out, estimated core net profit of RM335mil exceeded our and consensus full-year forecasts by 28-40%.

“The key deviation was strong plantation earnings due to higher crude palm oil (CPO) prices, higher core EBITDA margin of 22% vs. our forecast of 8.9% and lower tax rates. FY21 revenue contracted 14.9% yoy due to the impact of various Movement Control Orders (MCOs) on construction and property billings and toll revenue, ” it said.

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