KUALA LUMPUR: Shares of Kuala Lumpur Kepong Bhd (KLK) emerged as the top losers on Bursa Malaysia in early trade today after its latest financial results missed market expectations. 

At 10.20 am, KLK's shares eased 4.0 per cent, or 86 sen, to RM20.76, with 182,100 shares changing hands. 

CIMB Securities Sdn Bhd said in a note today that KLK's financial year (FY24) core net profit came in 12 per cent below its forecast and 22 per cent below consensus estimates.

The shortfall was attributed to weaker downstream earnings, losses from its UK associate Synthomer, and higher tax expenses from deferred tax adjustments. 

Additionally, KLK recognised a one-off impairment loss of RM180 million on its Synthomer investment and an inventory write-down of RM50.8 million tied to KLK Hardwood Flooring. 

Despite maintaining a 'hold' call on KLK, CIMB Securities lowered its target price to RM22.80 per share. 

Kenanga Investment Bank Bhd also highlighted KLK's earnings underperformance, noting that FY24 results fell 25 per cent short of its forecast and 28 per cent below consensus.

Core net profit declined 25 per cent year-on-year due to weak downstream earnings and losses from its UK associate. 

However, upstream earnings improved, supported by higher fresh fruit bunch output and robust crude palm oil (CPO) prices. 

"CPO and palm kernel prices are expected to stay healthy, but downstream performance will likely stay subdued. As a result, FY25 core earnings per share are cut by 14 per cent, and the target price is reduced by 9.0 per cent to RM21.00. Nonetheless, a 'market perform' rating is maintained," Kenanga added.