20/02/2014 (Bernama) - Kuala Lumpur Kepong Bhd's (KLK) share prices fell in early trade today on an overbought correction after posting favourable first quarter (Q1) results.

As of 11 am, the share price was down 20 sen or 0.8 per cent to RM23.94, with 13,200 shares changing hands.

KLK's pre-tax profit for the Q1 ended Dec 31, 2013, rose to RM377.72 million from the RM353.61 million recorded in the same period of 2012.

Revenue grew to RM2.49 billion from RM2.32 previously.

Yesterday, KLK's share price perked 90 sen to close at RM24.50.

Kenanga Research in a research note today said KLK's core net profit of RM284 million was in line with expectations, as it made up 22 per cent of the its RM1.3 billion forecast and 24 per of the consensus RM1.18 billion forecast for financial year 2014.

The research house said KLK is expected to post better earnings from the second quarter onwards due to the recent surge in crude palm oil (CPO) prices to above RM2,700 per metric tonne.

"Given its big cap status and pure exposure to oil palm-related activities, we believe that KLK will attract investor attention, as we expect CPO prices to continue to appreciate to RM2900/mt by end-March 2014," it said.

It added that KLK's management has also indicated improved profit in financial year 2014 against financial year 2013 on better outlook in both the plantation and manufacturing divisions.

Kenanga Research is thus maintaining KLK's earnings forecast for the financial years 2014 2015 at RM1.3 billion and RM1.36 billion respectively.

It has also maintained an "outperform" call on KLK with an unchanged target price of RM26.10.