Showing posts with label KULIM. Show all posts
Showing posts with label KULIM. Show all posts
July 24, 2013
June 21, 2013
December 3, 2012
March 1, 2012
Kulim (M) - Purer plantation play after sale of fast food assets BUY
Stock Name: KULIM
Company Name: KULIM (M) BHD
Company Name: KULIM (M) BHD
| Research House: AMMB | Price Call: BUY | Target Price: 5.00 |
Maintain BUY on Kulim with a higher RNAV-based fair value ofRM5.00/share (vs. RM4.25/share previously). Our new fair value is mainly basedon a PE of 11x on FY12F plantation earnings. Our previous assumption was10x.
Kulim's PE (based on historical EPS) ranged from a low of 3xto a high of 19x in the past seven years. Its average PE was 10x.
Kulim's core net profit was within our expectation but aboveconsensus estimates. The group has not declared any final gross DPS for FY11.Interim gross DPS was 5 sen in FY11.
After the disposal of QSR Brands and KFC Holdings, Kulim Bhdwould be a purer plantation company. There is also potential for Kulim todeclare higher dividends from the cash it receives from the disposal of QSR andKFC.
However in terms of earnings, the disposal of QSR and KFCwould have a negative impact. We have reduced Kulim's FY12F earnings forecastby 6% to account for loss of earnings from the fast food division. We haveassumed that the disposal of the fast food division would be completed bymid-FY12F.
Kulim's EBIT rose 44.3% YoY to RM1.1bil in FY11 driven by thefull-year impact from the acquisition of Kula Palm Oil Ltd in Papua New Guinea(PNG).
As a result, operating profit of the PNG plantation divisionclimbed 95.8% YoY to RM893.2mil in FY11. FFB production of the PNG divisionsurged 32.3% to 1.7mil tonnes in FY11.
Average CPO price realised by the PNG division was US$1,108/tonne(RM3,389/tonne). This was higher than the average CPO price of RM3,278/tonnereported by MPOB (Malaysian Palm Oil Board) in FY11.
As for Malaysia, EBIT of the plantation division rose 11.3% toRM236.6mil in FY11 underpinned by an improvement in CPO prices and output.After recording a flat output in FY10,Kulim's FFB production in Malaysia improved by 15.5% in FY11.
This is a trend which is consistent with the other plantationcompanies in Malaysia. Average CPO price realised by the plantation division inMalaysia was RM3,193/tonne in FY11, 22.6% higher than the average price ofRM2,604/tonne recorded in FY10.
Source: AmeSecurities
KULIM (FV RM5.47 - BUY) FY11 Results Review: Priming For a Stronger Year
Stock Name: KULIM
Company Name: KULIM (M) BHD
Company Name: KULIM (M) BHD
| Research House: OSK | Price Call: BUY | Target Price: 5.47 |
We are maintaining Kulim as Buy, lifting our fair value to RM5.47 based on 13x FY12earnings. The FY11 numbers were a little below our forecast but we believe FY12will be a better year fuelled by contribution from Kulim's newly acquired estates in Malaysia. We are raising our profit forecast to factorin a more aggressive yield curve at its PNG plantations. The stock is poisedfor a rerating once the sale of QSR is completed in March or April, which willtransform Kulim into a purer plantation giant with more than 100k ha of plantedarea.
Undershooting ourforecast. Kulim's FY11 core earnings came in at RM472.5m, missing ourestimate of RM501.3m by 5.7% but met consensus forecast of RM480.0m. PNG-driven. New Britain Palm Oil (NBPO) continued to be the biggest contributor to Kulim'sprofits, accounting for an estimated 60.5% at net profit level. EBIT surged 95.8%, boosted by a 32.3% leap in FFB production and a 30.4% increase in realized CPO price. NBPOhad the benefit of full year contribution from its Kula Plantation acquired inApril 2010. Its FFB production, at 1.74m tonnes, was within our forecast but surpassedmanagement guidance by 8.6%.
Malaysia plantations.Production growth was slower than at PNG but still a commendable 15.5%. The realised CPO price of RM3,193 per tonne was close to the MPOBaverage. At EBIT level, the Malaysian plantations recorded a relativelymild 11.3% increase, which appears low compared against production growth andthe 22.6% rise in realized CPO price. We believe this was due to replantingcost, which it expensed off in its P&L. This segment should do well in 2012on the additional contribution from estates acquired from Johor Corp.Management expects FFB production to increase to 800k tonnes this year.
QSR's final days.The food & restaurants segment saw a mild 2.4% increase in EBIT. The saleof QSR should be completed in March or April, which should result in Kulim endingup with an additional RM1.2bn in itscoffers. There could also be a special dividend /capital repayment should Kulimfail to find any acquisition target.
Change in forecasts.We are tweaking up our forecast to RM531.0m for FY12 from RM504.8m previously,factoring in more aggressive yieldsfrom PNG. This leads to stronger production despite a smaller area due to replanting. We are also introducing our FY13 forecast ofRM600.3m. These forecasts assume that QSR remains in Kulim's stable. This planter is still one of the cheapest among the large Malaysian plantation companies.
Source: OSK188
January 11, 2012
December 15, 2011
December 14, 2011
August 29, 2011
Kulim edges up on solid 2Q results
Stock Name: KULIM
Company Name: KULIM (M) BHD
KUALA LUMPUR: KULIM (M) BHD [] shares advanced on Monday, Aug 29 after its net profit for 2Q ended June 30, 2011 surged nine-fold to RM146.29 million from RM14.66 million a year earlier, driven by mainly by higher revenue and profits from its PLANTATION [] division.
At 10.50am, Kulim added two sen to RM3.70 with 356,100 shares traded.
Revenue rose 32.4% to RM1.80 billion from RM1.36 billion, with higher contribution from all segments.
For the six months ended June 30, Kulim's net profit surged to RM273.39 million from RM76.55 million in 2010, on the back of a 33.3% jump in revenue to RM3.46 billion from RM2.59 billion.
MIDF Research in note Aug 29 said it had revised upwards its FY11 earnings forecast for Kulim while maintaining its FY12 numbers.
'We are maintaining our Neutral recommendation for Kulim with our target price maintained at RM3.35 using 10x PER based on FY12 EPS.
Company Name: KULIM (M) BHD
| Research House: MIDF | Price Call: HOLD | Target Price: 3.35 |
KUALA LUMPUR: KULIM (M) BHD [] shares advanced on Monday, Aug 29 after its net profit for 2Q ended June 30, 2011 surged nine-fold to RM146.29 million from RM14.66 million a year earlier, driven by mainly by higher revenue and profits from its PLANTATION [] division.
At 10.50am, Kulim added two sen to RM3.70 with 356,100 shares traded.
Revenue rose 32.4% to RM1.80 billion from RM1.36 billion, with higher contribution from all segments.
For the six months ended June 30, Kulim's net profit surged to RM273.39 million from RM76.55 million in 2010, on the back of a 33.3% jump in revenue to RM3.46 billion from RM2.59 billion.
MIDF Research in note Aug 29 said it had revised upwards its FY11 earnings forecast for Kulim while maintaining its FY12 numbers.
'We are maintaining our Neutral recommendation for Kulim with our target price maintained at RM3.35 using 10x PER based on FY12 EPS.
August 17, 2011
Kulim to go 'big league' with plantation buy
Stock Name: KULIM
Company Name: KULIM (M) BHD
OSK Research Sdn Bhd expects the acquisition of Johor Corp Bhd's 13,687 hectares of plantation in Johor by Kulim (M) Bhd to catapult the company into the league of big planters.
The research firm said the estate acquisition would increase Kulim's planted hectarage by 10.7 per cent to 124,256 hectares.
"We view the acquisition price of RM51,000 per hectare as very attractive, compared with IOI Corp's acquisition of a plantation estate in Sugut, Sabah, for RM69,000 per hectare," OSK said in a note today.
It said that the acquisition would also increase Kulim's net debts to RM2.2 billion from RM1.5 billion as of the end of March 2011.
"The consensus estimate has been revised upward by RM100 million since a quarter ago to RM462 million. But, we believe there is still more room for an upward revision," OSK said, adding, it maintained a "buy" call on Kulim, with a fair value of RM4.77.
Meanwhile, the research firm is neutral on Kulim's purchase of the remaining 24.5 per cent stake in Sindora Bhd, as it views the company's listing status as redundant.
"Hence, it does make sense to de-list the company, especially if it intends to list the shipping business," it added. -- Bernama
Company Name: KULIM (M) BHD
| Research House: OSK | Price Call: BUY | Target Price: 4.77 |
OSK Research Sdn Bhd expects the acquisition of Johor Corp Bhd's 13,687 hectares of plantation in Johor by Kulim (M) Bhd to catapult the company into the league of big planters.
The research firm said the estate acquisition would increase Kulim's planted hectarage by 10.7 per cent to 124,256 hectares.
"We view the acquisition price of RM51,000 per hectare as very attractive, compared with IOI Corp's acquisition of a plantation estate in Sugut, Sabah, for RM69,000 per hectare," OSK said in a note today.
It said that the acquisition would also increase Kulim's net debts to RM2.2 billion from RM1.5 billion as of the end of March 2011.
"The consensus estimate has been revised upward by RM100 million since a quarter ago to RM462 million. But, we believe there is still more room for an upward revision," OSK said, adding, it maintained a "buy" call on Kulim, with a fair value of RM4.77.
Meanwhile, the research firm is neutral on Kulim's purchase of the remaining 24.5 per cent stake in Sindora Bhd, as it views the company's listing status as redundant.
"Hence, it does make sense to de-list the company, especially if it intends to list the shipping business," it added. -- Bernama
January 4, 2011
KULIM - Kulim climbs, OSK ups target price
Stock Name: KULIM
Company Name: KULIM (M) BHD
Research House: OSK
KUALA LUMPUR: Shares of Kulim advanced in early trade on Tuesday, Jan 4 while OSK Research upgraded its target price to RM14.75 from RM11.20 previously.
At 9.03am, Kulim was up 20 sen to RM12.68 with 13,700 shares done.
The FBM KLCI rose 2.95 points to 1,536.37, which was another fresh high in intra-day trade. Turnover was 57.05 million shares valued at RM41.45 million.
OSK Research upgraded its target price for Kulim to RM14.75 from RM11.20 previously to factor in its higher CPO price assumption.
The research house said although the stock has outperformed the sector in the past two to three months, its valuation remains inexpensive; hence it is maintaining its Buy call.
Company Name: KULIM (M) BHD
Research House: OSK
KUALA LUMPUR: Shares of Kulim advanced in early trade on Tuesday, Jan 4 while OSK Research upgraded its target price to RM14.75 from RM11.20 previously.
At 9.03am, Kulim was up 20 sen to RM12.68 with 13,700 shares done.
The FBM KLCI rose 2.95 points to 1,536.37, which was another fresh high in intra-day trade. Turnover was 57.05 million shares valued at RM41.45 million.
OSK Research upgraded its target price for Kulim to RM14.75 from RM11.20 previously to factor in its higher CPO price assumption.
The research house said although the stock has outperformed the sector in the past two to three months, its valuation remains inexpensive; hence it is maintaining its Buy call.
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