Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
Research House: ECMLIBRA
Company Name: KUALA LUMPUR KEPONG BHD
Research House: ECMLIBRA
ECM Libra Investment Research has downgraded plantation company KL Kepong Bhd, from a trading "buy" to "hold", with a lowered target price of RM19.80 from RM21.70 previously. This follows the recent downgrade of the sector to neutral.
ECM Libra said there was potential for crude palm oil (CPO) prices to correct further due an expected turnaround in Malaysian production and recovery soybean supplies.
Reviewing KL Kepong's first quarter result, the research house said its net profit made up 37 per cent of its estimates, while the manufacturing sector of the company has outperformed expectation.
"Adding back the RM50.2 million fair value losses, the manufacturing segment turned in an operating profit due to lower feedstock cost, coupled with higher selling prices of refined product," it said in a statement here, today.
KL Kepong posted a net profit of RM304.19 million for the first quarter ended Dec 31, 2010, against RM241.82 million of the same quarter in 2009. Revenue jumped to RM2.42 billion from RM1.75 billion, previously. -- Bernama
ECM Libra said there was potential for crude palm oil (CPO) prices to correct further due an expected turnaround in Malaysian production and recovery soybean supplies.
Reviewing KL Kepong's first quarter result, the research house said its net profit made up 37 per cent of its estimates, while the manufacturing sector of the company has outperformed expectation.
"Adding back the RM50.2 million fair value losses, the manufacturing segment turned in an operating profit due to lower feedstock cost, coupled with higher selling prices of refined product," it said in a statement here, today.
KL Kepong posted a net profit of RM304.19 million for the first quarter ended Dec 31, 2010, against RM241.82 million of the same quarter in 2009. Revenue jumped to RM2.42 billion from RM1.75 billion, previously. -- Bernama
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