Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
KUALA LUMPUR: RHB Research raised its fair value of Kuala Lumpur Kepong Bhd to RM22.40 per share from RM20.80, citing better outlook for the plantation firm's refinery operations and its expansion plans in Indonesia.
"We were surprised to learn that KLK is setting up not one, but three refineries and one oleochemical facility in Indonesia," RHB said in a note on Friday.
Though RHB cut its earnings forecast by 2 per cent for the financial year 2012 to reflect flat fresh fruit bunches (FFB) production from KLK's Malaysian estates, it raised 2013 and 2014 growth forecasts by 3.4 per cent and 9.7 per cent, respectively.
The research house kept its 'underperform' rating on the stocks, saying "valuations remain rich in light of falling earnings growth momentum."
As of 0300 GMT, KLK shares remained unchanged at RM23.52 per share while the Malaysian benchmark stock index fell 0.07 per cent. -- Reuters
Company Name: KUALA LUMPUR KEPONG BHD
| Research House: RHB | Price Call: BUY | Target Price: 22.40 |
KUALA LUMPUR: RHB Research raised its fair value of Kuala Lumpur Kepong Bhd to RM22.40 per share from RM20.80, citing better outlook for the plantation firm's refinery operations and its expansion plans in Indonesia.
"We were surprised to learn that KLK is setting up not one, but three refineries and one oleochemical facility in Indonesia," RHB said in a note on Friday.
Though RHB cut its earnings forecast by 2 per cent for the financial year 2012 to reflect flat fresh fruit bunches (FFB) production from KLK's Malaysian estates, it raised 2013 and 2014 growth forecasts by 3.4 per cent and 9.7 per cent, respectively.
The research house kept its 'underperform' rating on the stocks, saying "valuations remain rich in light of falling earnings growth momentum."
As of 0300 GMT, KLK shares remained unchanged at RM23.52 per share while the Malaysian benchmark stock index fell 0.07 per cent. -- Reuters
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