August 23, 2021

Analysts Remain Optimistic About KLK Development

 Kuala Lumpur Kepong Berhad (KLK) recorded an increase in net profit rate in the second quarter ended June 30, 2021 of RM783.94 million.

The value of the profit also recorded a double increase compared to that achieved in the same period last year around RM368.7 million.

Meanwhile, for revenue, it showed a jump to RM5.17 billion from RM3.71 billion and basic opinion per share rose to 72.7 sen from 34.2 sen.

KLK explained that the improvement in this performance was influenced by better profitability from the plantation, manufacturing and property development segments.

Following that, MIDF Research maintained a buy recommendation for KLK and changed the target price (TP) to RM29.22 from RM28.90 based on the revaluation of the earnings forecast for KLK.

"We remain optimistic about the group's growing prospects given the progress of its business in the plantation and manufacturing sectors," he added.

Maybank Investment Bank Research also increased its estimated profit after tax and minority interest KLK (PATMI) to a higher percentage rate.

According to him, KLK will remain the main purchase by targeting the new price (TP) at RM29.90 as a result of the increase in PATMI.

Meanwhile, KLK issued a forecast that the group's profit for the financial year ended September 30, 2021 is expected to increase significantly.