Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
Affin Investment Bank raised the target price of Malaysia's third biggest oil palm planter KL Kepong Bhd (KLK) to RM19.62 per share from RM18.64 as productivity improves in the firm's Indonesian estates.
KLK is likely to post above average growth for fresh fruit bunch (FFB) output as more estates in Indonesia reach maturity and new acquisitions raise the firm's landbank close to 300,000 hectares, Affin said in a note.
Higher yields from KLK's estates are likely to lower production costs to RM1,290 per tonne this year from RM1,303 last year, the investment bank said.
Affin kept a "reduce" call on the stock as the price outlook is not so bright for crude palm oil extracted from the FBB on account of high stocks of the edible oil in Southeast Asia and sluggish demand.
KLK shares were up 0.4 per cent at RM21.94 as of 9.42 am (0142 GMT). -- Reuters
Company Name: KUALA LUMPUR KEPONG BHD
| Research House: AFFIN | Price Call: SELL | Target Price: 19.62 |
Affin Investment Bank raised the target price of Malaysia's third biggest oil palm planter KL Kepong Bhd (KLK) to RM19.62 per share from RM18.64 as productivity improves in the firm's Indonesian estates.
KLK is likely to post above average growth for fresh fruit bunch (FFB) output as more estates in Indonesia reach maturity and new acquisitions raise the firm's landbank close to 300,000 hectares, Affin said in a note.
Higher yields from KLK's estates are likely to lower production costs to RM1,290 per tonne this year from RM1,303 last year, the investment bank said.
Affin kept a "reduce" call on the stock as the price outlook is not so bright for crude palm oil extracted from the FBB on account of high stocks of the edible oil in Southeast Asia and sluggish demand.
KLK shares were up 0.4 per cent at RM21.94 as of 9.42 am (0142 GMT). -- Reuters
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