| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
KLK Overview
Kuala Lumpur Kepong Berhad engages in the plantation, manufacturing, and property development businesses.
Kuala Lumpur Kepong Berhad Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | RM19.84 |
| 52 Week High | RM18.52 |
| 52 Week Low | RM25.22 |
| Beta | 0.32 |
| 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 IPO | 1,100.02% |
Recent News & Updates
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...
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...
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
| KLK | MY Food | MY 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
| KLK volatility | |
|---|---|
| KLK Beta | 0.32 |
| Industry Beta | 0.50 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1906 | 40,000 | Oi Hian Lee | https://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
| KLK fundamental statistics | |
|---|---|
| Market Cap | RM21.39b |
| Earnings (TTM) | RM1.84b |
| Revenue (TTM) | RM17.98b |
11.6x
P/E Ratio1.2x
P/S RatioIs KLK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| KLK income statement (TTM) | |
|---|---|
| Revenue | RM17.98b |
| Cost of Revenue | RM15.29b |
| Gross Profit | RM2.70b |
| Expenses | RM854.80m |
| Earnings | RM1.84b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.71 |
| Gross Margin | 14.99% |
| Net Profit Margin | 10.23% |
| Debt/Equity Ratio | 51.0% |
How did KLK perform over the long term?
See historical performance and comparisonDividends
2.8%
Current Dividend Yield32%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/25 11:02 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/09/30 |
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.