Kuala Lumpur Kepong's Share Price Overhang Likely Gone

Dow Jones
08/27

0123 GMT - Kuala Lumpur Kepong's share-price overhang from concerns over further impairment at associate Synthomer likely eased following a 1.62 billion ringgit one-off non-cash impairment, with future losses no longer expected to affect KLK's earnings, Maybank IB analyst Ong Chee Ting says in a note. KLK will begin equity-accounting MP Evans' share of associate profits from fiscal 4Q, he says. Despite potential weather-related pressure on FY 2027 output, higher CPO prices are expected to provide an offset, he notes. Ong raises KLK's FY 2026-2028 core profit estimates by 2%-5%. Maybank raises KLK's rating to buy from hold and raises its target price to 24.90 ringgit from 21.20 ringgit. Shares are unchanged at 21.76 ringgit.

 

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