Affin Hwang Capital Daily Insight (LV) - 17 May 2016 - (RESEND: KLK)

Top Calls

Results Note - KL Kepong (HOLD, maintain) - Below expectation but HOLD rating maintained 2QFY16 core net profit declined by 23.9% qoq mainly due to 26.9% decline in FFB production and lower manufacturing profit, resulting in 6MFY16 core net profit coming in below our expectation. We cut our FY16E-18E core net profit forecasts by 3%-14% after trimming FFB production growth assumptions. Rolling forward an unchanged PE target of 19x to FY17E EPS, we cut our TP for KLK by 3.1% to RM21.70. We maintain our HOLD rating for KLK.

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