KUALA LUMPUR, Feb 17 ― Kuala Lumpur Kepong Bhd (KLK) share price jumped in the early trade today following its improved first quarter of financial year 2022’s performance, which was boosted by higher crude palm oil (CPO) and palm kernel (PK) prices.
At 10.15am, KLK advanced 3.75 per cent or 96 sen to RM26.56, with a total of 920,800 shares changing hands.
Yesterday, the company announced that its net profit had surged to RM599.3 million in the first quarter ended December 31, 2021 (Q1 2022) from RM357.4 million in Q1 2021, while revenue jumped to RM6.83 billion from RM4.3 billion previously.
In a note, MIDF Research said it remains optimistic about the group’s outlook, premised on the favourable business environments in the plantation and manufacturing divisions as well as the group’s acquisition of IJM Plantations Bhd.
“The profit contribution from the plantation segment is expected to be resilient, propelled by the expected high average selling price of CPO and PK,” it said.
As such, the research house has maintained its 'buy' call for KLK, with a revised target price of RM29.68 from RM28.37 previously. ― Bernama
