Latest news with #KLK
The Star
9 hours ago
- The Star
Slow traffic flow on major Klang Valley highways on June 8
KUALA LUMPUR: People returning to the capital after the Aidiladha holiday are experiencing slow traffic on several major highways heading to the Klang Valley as of 8pm Sunday (June 8). A spokesman for the Malaysian Highway Authority (MHA) said traffic flow from the north to the Klang Valley on the North-South Expressway (PLUS) was reported to be slow at several locations, including Alor Setar Selatan to Sungai Petani, Bandar Cassia to Taiping and Sungai Perak to Ipoh. Slow traffic was also reported from Gopeng to Sungkai and Behrang towards Rawang. "Traffic flow from the south on the PLUS highway was reported to be slow from Pagoh to Ayer Keroh and the Ayer Keroh Rest and Service Area to Nilai," he said when contacted Sunday. Traffic flow from the east to the Klang Valley on the Kuala Lumpur-Karak Expressway (KLK) and East Coast Expressway (LPT) 1 is reported to be slow at Lanchang to Karak Toll Plaza, Karak to Bukit Tinggi and Genting Sempah to Gombak Toll Plaza. The public can get the latest traffic information via the toll-free PLUSLine 1-800-88-0000 and the X site @plustrafik or the LLM Info Trafik WhatsApp channel and the X site @llmtrafik. - Bernama
New Straits Times
27-05-2025
- Business
- New Straits Times
KLK's earnings set to improve as derivatives losses recede, says CIMB Securities
KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK) is expected to register a higher second half of (2H) financial year 2025 (FY25) net profit in absence of derivatives losses, said CIMB Securities Research. The research house said KLK lowered its FY25 fresh fruit bunch (FFB) output guidance to mid-single-digit growth but remains positive about 2H prospects, supported by improved production. "This suggests that 2HFY9/25 production could account for about 52 per cent of full-year output, supporting earnings momentum, although this will be partly offset by lower current crude palm oil (CPO) prices," it said. Meanwhile, CIMB Securities said KLK recorded a 2.5 per cent year on year (yoy) decline in ex-mill CPO production costs to RM2,100/tonne in 1HFY25, driven by lower fertiliser prices. However, the firm said refining margins are expected to remain weak, the glove division is still loss-making, and gas supply disruptions have affected oleochemical plant efficiency in third quarter (Q3) FY25. "KLK shared that the RM252 million in derivatives losses in 1HFY25 was mainly related to unrealised US dollar hedges of RM143 million. "We maintain our Hold call with an unchanged target price of RM21.50," it added.
The Star
26-05-2025
- Business
- The Star
KLK's palm oil production set to rise with drier weather
PETALING JAYA: Kuala Lumpur Kepong Bhd 's (KLK) fresh fruit bunch (FFB) production is likely to come in lower than anticipated in its financial year ending September 30 (FY25), due to a decline in production so far this year. Hong Leong Investment Bank Research (HLIB Research) said over the last five months, the plantation group's production fell marginally as all its operating regions were hit by heavy rains. While management remained optimistic that output would recover once weather returns to normal, it also hinted that its earlier FFB output target of six million tonnes or about 9% growth seems ambitious given the negative output growth registered year-to-date. 'As such, we lowered our FY25 FFB output growth to 6%, from 9% earlier, HLIB Research said after a recent meeting with KLK's management. As for crude palm oil (CPO) production cost guidance, management expects it to be below RM2,000 per tonne for FY25 versus RM2.39 in FY24. This comes on the back of lower fertiliser cost and productivity growth, which will offset the higher labour cost due to the higher minimum wage and compulsory Employees Provident Fund contribution fsor foreign workers, although the latter is insignificant relative to its large earnings base. KLK's 2Q25 core net profit of RM257mil brought its first half core net profit to RM486mil. Going forward, management expects the brighter prospects in the oleochemical sub-segment to cushion weak performance at the refining sub-segment. 'Demand and margin recovery for oleochemical products in the European Union and China will cushion weak performance at refining sub-segment on the back of overcapacity and uncertainty arising from biodiesel policy in Indonesia. 'Meanwhile, prospects at 21.3%-owned associate, Synthomer plc is expected to improve, supported by continued streamlining of core businesses and operations,' said HLIB Research . Synthomer is a British-listed speciality chemicals company. The contributions from the group's property arm are also likely to improve. According to HLIB Research, KLK has earmarked 2,500 acres of plantation land in Kulai, Johor for development of an industrial park, which would allow it to register earnings from two fronts – land sales and property development. 'The industrial park foray aside, we understand that the construction of a retail mall in Bandar Seri Coalfields has a net lettable area of 337,181sq ft and scheduled for completion by early-2026. 'This will improve vibrancy of KLK's maiden township in Bandar Seri Coalfields,' said HLIB, which kept its 'buy' rating with a lower target price to RM22.20 for the group. Meanwhile, UOB Kay Hian Research has a 'hold' rating and RM19 target price on the stock. It said, while the 3Q25 results were likely to remain anchored by its plantation-segment profits, the downstream segment may swing back into operating losses as the refining business may continue to contend with negative product margins. The oleochemicals division was also likely to fare weaker quarter-on-quarter as management disclosed that its operations in Malaysia were affected by gas supply disruptions which hampered fulfilment of sales orders in the early 3Q25 period.
The Star
22-05-2025
- Business
- The Star
KLK quarterly earnings rise 32% to RM154mil
The group expects plantation earnings to remain resilient. PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) posted a 31.8% year-on-year (y-o-y) rise in net profit to RM154.27mil for the second quarter ended March 31, 2025 (2Q25), driven by higher crude palm oil (CPO) and palm kernel (PK) selling prices, which bolstered plantation earnings despite a weak showing in its manufacturing segment. Revenue for the quarter grew 16.2% y-o-y to RM6.34bil, as CPO prices averaged RM4,116 per tonne, up 13.7% from RM3,620 a year ago, while PK surged 70.2% to RM3,265 per tonne. For the first half of its financial year 2025 (1H25), KLK's net profit rose 8.9% y-o-y to RM374.73mil on the back of a 10.7% increase in revenue to RM12.28bil. The group declared a 20 sen interim dividend to be paid on July 29, with the entitlement date set for July 10. The plantation segment remained the primary profit driver, with 2Q25 profit improving to RM454.3mil from RM357.7mil a year earlier, helped by favourable selling prices. Furthermore, this was despite lower CPO and PK sales volumes and a fair value loss of RM53.4mil on unharvested fresh fruit bunches. However, the manufacturing division turned in a pre-tax loss of RM38.3mil versus a RM56.7mil profit in 2Q24, weighed by continued losses in its refinery and kernel crushing operations. KLK's performance was also impacted by a RM63mil share of loss from 27%-owned Synthomer plc and foreign exchange losses totalling RM217mil in 1H25, both of which are non-cash in nature. The group expects plantation earnings to remain resilient, supported by the upcoming high crop season and cost management amid expectations that CPO prices will trade between RM3,800 and RM4,200 per tonne. 'Given the challenging macroeconomic outlook and increased volatility in commodity markets following recent tariff developments, the group adopts a prudent stance in navigating the remainder of financial year 2025,' it noted. Meanwhile, KLK's major shareholder Batu Kawan Bhd saw its net profit rise 3.7% y-o-y to RM87.89mil in 2Q25, while revenue climbed 15% to RM6.51bil. For the first half, net profit rose 9.7% to RM215.48mil, while revenue increased 9.9% to RM12.63bil. Additionally, Batu Kawan's plantation segment delivered a 41% jump in profit to RM1.05bil in 1H25, underpinned by stronger CPO and PK prices, which helped offset lower fresh fruit bunch yields and extraction rates caused by adverse weather conditions.
The Star
22-05-2025
- Business
- The Star
KLK records higher earnings in 2Q25
PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) posted a 31.8% year-on-year (y-o-y) rise in net profit to RM154.27mil for the second quarter ended March 31, 2025 (2Q25), driven by higher crude palm oil (CPO) and palm kernel (PK) selling prices, which bolstered plantation earnings despite a weak showing in its manufacturing segment. Revenue for the quarter grew 16.2% y-o-y to RM6.34bil, as CPO prices averaged RM4,116 per tonne, up 13.7% from RM3,620 a year ago, while PK surged 70.2% to RM3,265 per tonne. For the first half of its financial year 2025 (1H25), KLK's net profit rose 8.9% y-o-y to RM374.73mil on the back of a 10.7% increase in revenue to RM12.28bil. The group declared a 20 sen interim dividend to be paid on July 29, with the entitlement date set for July 10. The plantation segment remained the primary profit driver, with 2Q25 profit improving to RM454.3mil from RM357.7mil a year earlier, helped by favourable selling prices. This was despite lower CPO and PK sales volumes and a fair value loss of RM53.4mil on unharvested fresh fruit bunches. However, the manufacturing division turned in a pre-tax loss of RM38.3mil versus a RM56.7mil profit in 2Q24, weighed by continued losses in its refinery and kernel crushing operations. KLK's performance was also impacted by a RM63mil share of loss from 27%-owned Synthomer plc and foreign exchange losses totalling RM217mil in 1H25, both of which are non-cash in nature. The group expects plantation earnings to remain resilient, supported by the upcoming high crop season and cost management amid expectations that CPO prices will trade between RM3,800 and RM4,200 per tonne. 'Given the challenging macroeconomic outlook and increased volatility in commodity markets following recent tariff developments, the group adopts a prudent stance in navigating the remainder of FY25,' it noted. Meanwhile, KLK's major shareholder Batu Kawan Bhd , saw its net profit rise 3.7% y-o-y to RM87.89mil in 2Q25, while revenue climbed 15% to RM6.51bil. For the first half, net profit rose 9.7% to RM215.48mil, while revenue increased 9.9% to RM12.63bil. Batu Kawan's plantation segment delivered a 41% jump in profit to RM1.05bil in 1H25, underpinned by stronger CPO and PK prices, which helped offset lower fresh fruit bunch yields and extraction rates caused by adverse weather conditions.
