Kuala Lumpur Kepong Likely to See Share Price Weakness Amid 3Q Losses
Dow Jones
6 hours ago
0109 GMT - Kuala Lumpur Kepong could face some share price weakness after its fiscal 3Q swung into losses amid impairment losses at associate Synthomer, Maybank IB analyst Ong Chee Ting says in a note. However, the impairment is an accounting, non-cash item and helps remove an overhang on the stock, he notes. KLK could return into the black in fiscal 4Q, with its plantation division expected to drive earnings, he says. Share of losses from Synthomer is also expected to narrow 83% on year to 8 million ringgit, he reckons. Maybank maintains a hold rating on KLK and keeps its target price at 21.20 ringgit. Shares are 0.2% lower at 21.88 ringgit.
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