Kuala Lumpur Kepong Bhd recorded a core net profit (CNP) of RM154.3m (+128.3% year-over-year and -36.0% quarter-on-quarter in 2QFY25, bringing 6MFY25 CNP to RM651.1m (+103.4% yoy) which came within ours and consensus expectations at 50.4% and 52.9% respectively. Fresh fruit bunches output assumption still intact, with production reaching 2.7m metric tonne (mt), meeting 44.6% of our forecasts of 6.1m mt. Following the recent price correction, we upgrade our recommendation to Buy (from Hold) with an unchanged target price of RM21.60, by pegging 18.2x price-to-earnings multiple to FY25F earnings per share and 0% ESG factored premium/discount based on a three-star environmental social and governance rating. – APEX Securities (May 23, 2025)
(Calls by analysts tracked by Bloomberg: 7 Buy, 13 Hold, 0 Sell; Consensus target price: RM21.59)
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