KUALA LUMPUR (May 20): Kuala Lumpur Kepong Bhd (KLK) topped the gainers list on Bursa Malaysia today after its net profit for the second quarter ended March 31, 2021 (2QFY21) swelled almost 18 times to RM490.44 million from RM27.89 million a year ago.
At 9.30am, the stock jumped 46 sen or 2.09% to RM22.48, with 68,300 shares traded. It had a market capitalisation of RM23.7 billion.
Its parent Batu Kawan Bhd was also buoyed by the good news, becoming the fifth-highest gainer on the local bourse this morning.
The counter rose 20 sen or 1.05% to RM19.20. Market capitalisation stood at RM7.6 billion.
Yesterday, KLK posted a stronger set of results, with its net profit boosted by higher commodity prices and stronger earnings from its manufacturing and property segments.
Meanwhile, revenue rose 18.5% to RM4.51 billion from RM3.81 billion previously. It declared an interim dividend of 20 sen per share, up from 15 sen in 2QFY20, to be paid on Aug 3.
Public Investment Bank kept its neutral stance on the counter, but raised its target price to RM25.51 from RM25.41 prior, after raising its forecast on crude palm oil (CPO) prices, given the current upward momentum of the commodity.
Meanwhile, MIDF Research kept its “buy” call and target price of RM27.01 as it still viewed KLK’s outlook as challenging, given that a surge in Covid-19 cases and higher palm kernel prices could offset gains from higher CPO prices.
Hong Leong Investment Bank also kept its “buy” rating but lowered its sum-of-parts derived target price to RM26.60 from RM26.64, after updating its valuation parameters.
