Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
HwangDBS Vickers has maintained a "buy" call on Kuala Lumpur Kepong (KLK), with a target price of RM25.35 due to the company's earnings growth potential.
It said KLK had announced that it would invest RM706 million to develop its
palm oil processing facilities in Malaysia.
"This comes as an initiative to move up the value chain," it said in a
research note today.
The research firm understands that the projects will take 18 to 24 months to
complete and KLK has been given a RM134 million grant by the Malaysian Palm Oil
Board.
It said KLK would spend about RM500 million over the next two years.
HwangDBS understands that KLK is likely to reap a minimum 15 per cent
investment returns from the projects as was indicated by its chief executive
officer. -- Bernama
Company Name: KUALA LUMPUR KEPONG BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 25.35 |
HwangDBS Vickers has maintained a "buy" call on Kuala Lumpur Kepong (KLK), with a target price of RM25.35 due to the company's earnings growth potential.
It said KLK had announced that it would invest RM706 million to develop its
palm oil processing facilities in Malaysia.
"This comes as an initiative to move up the value chain," it said in a
research note today.
The research firm understands that the projects will take 18 to 24 months to
complete and KLK has been given a RM134 million grant by the Malaysian Palm Oil
Board.
It said KLK would spend about RM500 million over the next two years.
HwangDBS understands that KLK is likely to reap a minimum 15 per cent
investment returns from the projects as was indicated by its chief executive
officer. -- Bernama
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