KUALA LUMPUR: Kim Loong Resources Bhd's (KIML) earnings for 2013 is expected to be lower, year-on-year, (YoY) given the company's
current poor production, a research house said today.
Alliance Research said the plantation company's fresh fruit bunches production for the five months financial year 2013 period was 36.1 per cent lower, YoY, and crude palm oil production declined 23.6 per cent, YoY.
The decline was largely because of replanting activities and tree stress after financial year 2012's bumper crop, it said.
Production for the rest of the year was not expected to catch up with levels seen in FY12.
"We are forecasting a 11 per cent decline in net profits in 2013
earnings and flat earnings going into 2014," it added.
Nevertheless, Alliance Research has recommended a 'neutral call on KIML at target price of RM2.65 per share. -- BERNAMA
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