Bursa Malaysia Stock Watch

KLK: Maintain Sell - A tough year for the downstream division

kltrader
Publish date: Thu, 23 Feb 2012, 09:49 AM
kltrader
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No surprises for us. 1QFY12 core net profit of RM356m (-11% QoQ, -11% YoY) is largely within our expectations but slightly below street estimates. We raise our FY12-14F net profit forecasts by 5% in each year on a higher CPO ASP outlook of RM2,800/t (previously RM2,600/t) for 2012-13. Our revised TP is now RM19.60 (previously RM18.70), based on an unchanged 16x FY13 PER. Maintain Sell for its steep valuations and lack of short-term catalysts.

Maybank Research 23 Feb 2012

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