Friday 29 Mar 2024
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KUALA LUMPUR (Nov 20): Hong Leong Investment Bank Bhd cut its net profit forecast for Kuala Lumpur Kepong Bhd (KLK) after the plantation firm's latest financials came in below forecast.

In a note today, Hong Leong analyst Chye Wen Fei said the firm had cut its net profit forecast for KLK by between 0.6% and 1.9% for financial years (FY) ending September 30, 2015 to 2017.

"FY09/14 core net profit of RM985.8m (+10.2%) came in below expectations, accounting for only 88.8% and 92.7% of consensus and our forecasts, respectively.

"We tweaked our FY09/15-17 net profit forecasts lower by 0.6-1.9%, largely to account for a lower EBIT margin assumption for the manufacturing division," Chye said.

The profit estimate downgrade led Hong Leong to lower its target price for KLK shares to RM20.33. This came with an unchanged "hold" call for the stock.

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