4QFY21: Results Above Expectations
KLK’s 4QFY21 earnings came in above expectations mainly lifted by the additional earnings contribution from its newly-acquired subsidiary, IJMP. Upstream earnings continue to perform strongly on the back of high ASP; however, downstream operating margin would start to narrow due to the higher feedstock cost. We revised our earnings factoring in acquired estates from IJMP, higher CPO ASP and higher cost of
production. Maintain HOLD with a higher target price of RM23.00.