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FY21 core PATMI beat our/street expectations on better-than-expected plantation and associate contributions. FY22 outlook is still promising following completion of its upstream acquisitions (~75k ha planted or +34% to existing planted area) amidst elevated CPO ASP, and sustained associate’s earnings prospects. Following our PATMI upgrade, KLK remains our top large cap BUY with a new TP of MYR30.70 on 23x FY22 PER, -0.5SD of its updated 5Y mean.

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