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KLK

Kuala Lumpur Kepong BerhadKLSE:KLK Stock Report

Market Cap

RM21.4b

7D

-2.0%

1Y

-12.4%

Updated

25 Sep, 2021

Data

Company Financials +
KLK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends3/6

KLK Overview

Kuala Lumpur Kepong Berhad engages in the plantation, manufacturing, and property development businesses.

Kuala Lumpur Kepong Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kuala Lumpur Kepong Berhad
Historical stock prices
Current Share PriceRM19.84
52 Week HighRM18.52
52 Week LowRM25.22
Beta0.32
1 Month Change-6.85%
3 Month Change-3.41%
1 Year Change-12.37%
3 Year Change-20.51%
5 Year Change-17.26%
Change since IPO1,100.02%

Recent News & Updates

Aug 29
Is Kuala Lumpur Kepong Berhad (KLSE:KLK) Worth RM21.3 Based On Its Intrinsic Value?

Is Kuala Lumpur Kepong Berhad (KLSE:KLK) Worth RM21.3 Based On Its Intrinsic Value?

Does the August share price for Kuala Lumpur Kepong Berhad ( KLSE:KLK ) reflect what it's really worth? Today, we will...

Aug 11
The Returns At Kuala Lumpur Kepong Berhad (KLSE:KLK) Aren't Growing

The Returns At Kuala Lumpur Kepong Berhad (KLSE:KLK) Aren't Growing

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jun 26
Does Kuala Lumpur Kepong Berhad (KLSE:KLK) Have A Healthy Balance Sheet?

Does Kuala Lumpur Kepong Berhad (KLSE:KLK) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

KLKMY FoodMY Market
7D-2.0%-1.4%-0.7%
1Y-12.4%-9.5%5.8%

Return vs Industry: KLK underperformed the MY Food industry which returned -9.5% over the past year.

Return vs Market: KLK underperformed the MY Market which returned 5.8% over the past year.

Price Volatility

Is KLK's price volatile compared to industry and market?
KLK volatility
KLK Beta0.32
Industry Beta0.50
Market Beta1

Stable Share Price: KLK is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KLK's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190640,000Oi Hian Leehttps://www.klk.com.my

Kuala Lumpur Kepong Berhad engages in the plantation, manufacturing, and property development businesses. The company operates through Plantation, Manufacturing, Property Development, Investment Holding, and Others segments. It is involved in the cultivation, processing, and marketing of palm and rubber products; extraction of crude palm oil; refining of palm products; and kernel crushing and trading of palm products.

Kuala Lumpur Kepong Berhad Fundamentals Summary

How do Kuala Lumpur Kepong Berhad's earnings and revenue compare to its market cap?
KLK fundamental statistics
Market CapRM21.39b
Earnings (TTM)RM1.84b
Revenue (TTM)RM17.98b

11.6x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KLK income statement (TTM)
RevenueRM17.98b
Cost of RevenueRM15.29b
Gross ProfitRM2.70b
ExpensesRM854.80m
EarningsRM1.84b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.71
Gross Margin14.99%
Net Profit Margin10.23%
Debt/Equity Ratio51.0%

How did KLK perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

32%

Payout Ratio

Valuation

Is Kuala Lumpur Kepong Berhad undervalued compared to its fair value and its price relative to the market?

11.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KLK (MYR19.84) is trading above our estimate of fair value (MYR15.87)

Significantly Below Fair Value: KLK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KLK is good value based on its PE Ratio (11.6x) compared to the MY Food industry average (14.5x).

PE vs Market: KLK is good value based on its PE Ratio (11.6x) compared to the MY market (16x).


Price to Earnings Growth Ratio

PEG Ratio: KLK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KLK is overvalued based on its PB Ratio (1.8x) compared to the MY Food industry average (1x).


Future Growth

How is Kuala Lumpur Kepong Berhad forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KLK's earnings are forecast to decline over the next 3 years (-14.8% per year).

Earnings vs Market: KLK's earnings are forecast to decline over the next 3 years (-14.8% per year).

High Growth Earnings: KLK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KLK's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: KLK's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KLK's Return on Equity is forecast to be low in 3 years time (9.6%).


Past Performance

How has Kuala Lumpur Kepong Berhad performed over the past 5 years?

-5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KLK has a large one-off gain of MYR556.3M impacting its June 30 2021 financial results.

Growing Profit Margin: KLK's current net profit margins (10.2%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: KLK's earnings have declined by 5.2% per year over the past 5 years.

Accelerating Growth: KLK's earnings growth over the past year (149.1%) exceeds its 5-year average (-5.2% per year).

Earnings vs Industry: KLK earnings growth over the past year (149.1%) exceeded the Food industry 58.3%.


Return on Equity

High ROE: KLK's Return on Equity (14.8%) is considered low.


Financial Health

How is Kuala Lumpur Kepong Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: KLK's short term assets (MYR9.7B) exceed its short term liabilities (MYR3.9B).

Long Term Liabilities: KLK's short term assets (MYR9.7B) exceed its long term liabilities (MYR6.3B).


Debt to Equity History and Analysis

Debt Level: KLK's debt to equity ratio (51%) is considered high.

Reducing Debt: KLK's debt to equity ratio has increased from 43.5% to 51% over the past 5 years.

Debt Coverage: KLK's debt is well covered by operating cash flow (20.9%).

Interest Coverage: KLK's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Dividend

What is Kuala Lumpur Kepong Berhad current dividend yield, its reliability and sustainability?

2.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KLK's dividend (2.77%) is higher than the bottom 25% of dividend payers in the MY market (1.56%).

High Dividend: KLK's dividend (2.77%) is low compared to the top 25% of dividend payers in the MY market (4.17%).


Stability and Growth of Payments

Stable Dividend: KLK's dividend payments have been volatile in the past 10 years.

Growing Dividend: KLK's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), KLK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KLK's dividends in 3 years are forecast to be covered by earnings (54.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

18.3yrs

Average management tenure


CEO

Oi Hian Lee (70 yo)

28.67yrs

Tenure

RM11,158,000

Compensation

Mr. Oi Hian Lee has been Chief Executive officer of Kuala Lumpur Kepong Berhad since 2001 and has been its Executive director since February 1, 1985. He joined Batu Kawan Berhad on June 1, 1979. Mr. Lee jo...


CEO Compensation Analysis

Compensation vs Market: Oi Hian's total compensation ($USD2.66M) is above average for companies of similar size in the MY market ($USD1.04M).

Compensation vs Earnings: Oi Hian's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: KLK's management team is seasoned and experienced (18.3 years average tenure).


Board Members

Experienced Board: KLK's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kuala Lumpur Kepong Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Kuala Lumpur Kepong Berhad
  • Ticker: KLK
  • Exchange: KLSE
  • Founded: 1906
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: RM21.385b
  • Shares outstanding: 1.08b
  • Website: https://www.klk.com.my

Number of Employees


Location

  • Kuala Lumpur Kepong Berhad
  • Bangunan Mayban Trust Ipoh
  • Level 9
  • Ipoh
  • Perak
  • 30000
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 11:02
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.