Kim Loong's milling margins set to recover
The research firm said the earnings recovery from 4Q25 is envisaged to be underpinned by higher milling margins and a rebound in the supply of fresh fruit bunches (FFB).
'We believe that Kim Loong would be raising its milling processing charge by RM15 per tonne in 1Q26 to account for an increase in sustainability compliance costs.
'On a yearly basis however, we think that its net earnings would be flat in 1Q26 as a small drop in FFB production is offset by stronger palm product prices,' the research house said.
'We maintain 'buy' on Kim Loong for its decent dividend yield of more than 6% and pure exposure to crude palm oil prices,' said AmResearch, which has a RM2.75 fair value on the stock.
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