23/11/2012 (Bernama) - Kuala Lumpur Kepong Bhd (KLK)'s earnings are expected to recover as the gloomy situation in the plantation sector is anticipated to end, according to MIDF Research.

The research house also said the recent changes in Malaysia's crude palm oil tax structure will help to ease the stiff competition from the Indonesian downstream producers.

"We are anticipating commodity prices to rebound next year which will help to lift earnings," it said a note today.

KLK's pre-tax profit for the financial year ended Sept 30, 2012 fell to RM1.56 billion from RM2.07 billion last year.

Revenue declined to RM10.57 billion from RM10.743 billion previously. MIDF is maintaining its 'trading buy' call on KLK with an unchanged target price of RM24.52. At 11 am, KLK's share price rose 16 sen to RM20.72.