Kuala Lumpur Kepong (Sell; TP: RM21.03) - Sells retail units & expands landbank

Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD

Research House: HLG

Price Call: SELL

Target Price: 21.03

Kuala Lumpur Kepong (Sell; TP: RM21.03)

Sells retail units & expands landbank

• KLK made two announcements yesterday:

1. Disposed its wholly-owned subsidiary CE HoldingsLimited, which in turn holds the entire global Crabtree & Evelyn businessfor US$155m (or RM465m); and
2. Acquired a 90% stake in PT GPM, which currently holdsa certificate of Izin Lokasi for land measuring ~7,400 ha in Kalimantan Timur, Indonesiafor RM3.6m. 

• No change in our earnings forecasts, TP (RM21.03 based on CY2012 EPS of134.2 sen) and Sell recommendation on the stock. 

Source: HLIB Research 21 March 2012