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Final above due to strong associates profit

■ KLK’s final core net profit was a beat due largely to RM242m contribution from 21%-owned overseas associate Synthomer in 4QFY21.
■ We raise our FY22F-23F net profit forecasts to reflect the acquisition of IJM Plantation, higher CPO price, higher associate earnings and Cukai Makmur.
■ Maintain Add with a lower TP of RM22.22 as we roll forward our SOP-based valuations and raise our discount factor to 10% from 5%, previously.

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