4QFY22: Results Below Expectations
KIML reported a net core profit of RM33m for 4QFY22, bringing total core net profit to
RM150m. This is below our expectations due to lower-than-expected FFB production
and higher-than-expected external FFB purchases (higher cost). We expect FFB
production in FY23 to increase 15% yoy if the labour shortage does not worsen. We
expect milling operation margin to be higher in 2Q-3QFY23 with lower raw material cost.
Maintain HOLD with a target price of RM2.00.