Within expectations, minus one-offs. 4QFY11 net profit of RM460m (+6% QoQ, +48% YoY) was boosted by disposal gain of RM201m (mitigated by RM61m fair valuation loss) following the disposal of a 50%-associate. Stripping away one-offs, 4Q core net profit of RM321m (-24% QoQ, +37% YoY) was within expectations. FY11 core net profit of RM1,368m (+46% YoY) hit a new peak but we expect a weaker global demand next year to drive CPO ASP lower to RM2,600/t. Maintain Sell on KLK given its relatively expensive valuation at 18.4x FY13. Our TP of RM18.70, based on 16x FY13 PER, is unchanged.


Maybank research (24 November 2011)

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