MARKET DEVELOPMENT
Fruitful days ahead for KLK
Fruitful days ahead for KLK
The Star Online (22/10/2020) - PETALING JAYA: There are exciting prospects ahead for Kuala Lumpur Kepong Bhd
(KLK) in financial year 2021 (FY21), as fresh fruit bunch (FFB) growth is expected to rise on an industry-wide production recovery after a low season.
(KLK) in financial year 2021 (FY21), as fresh fruit bunch (FFB) growth is expected to rise on an industry-wide production recovery after a low season.According to Kenanga Investment Bank Research, KLK is targeting a FY21 FFB growth of 10%, excluding contributions from the acquisition of PT Pinang Witmas Sejati (PWS) and TSH Resources Bhd’s estates, which are both in Indonesia and yet to be completed.
’s estates, which are both in Indonesia and yet to be completed.Factoring in contributions from these acquisitions, FY21’s FFB growth could potentially hit 15%, it said. Upon completion of both acquisitions, KLK’s total planted area would increase about 8% to about 236,000ha, while its geographical mix of estates in Indonesia would increase to about 58% (versus about 55% previously).
On the back of this, Kenanga has raised its FY21 core net profit estimate by 4% on a higher FY21 FFB growth of 12% as compared with 6% previously.