Kuala Lumpur Kepong Stock Overhang May Soon Clear

Dow Jones
5 hours ago

0141 GMT - An impairment booked by Kuala Lumpur Kepong's associate, Synthomer, could clear a key overhang for the planter's stock, CIMB Securities analyst Ivy Ng Lee Fang says. The 1.62 billion ringgit non-cash charge reduces the risk of further sizeable impairments. KLK? remains positive on its FY 2026 outlook, supported by firm CPO prices, healthy fresh fruit bunches production and improving downstream earnings, she notes. Plantation earnings should remain resilient despite elevated costs, while manufacturing should benefit from stronger oleochemical contributions, partly offset by continued margin pressure in refining and kernel crushing. Still, Ng cuts KLK's FY 2026-FY 2027 earnings estimates by 1%-4% due to higher associate losses. CIMB raises KLK's stock target to 24.32 ringgit from 23.70 ringgit, while maintaining a buy rating. Shares fall 3.1% to 21.24 ringgit.

 

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