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Kuala Lumpur Kepong Berhad

OTCPK:KLKB.Y
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KLKB.Y
OTCPK
MYR25B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Kuala Lumpur Kepong Berhad engages in the plantation, manufacturing, and property development businesses in Malaysia and internationally. The last earnings update was 65 days ago. More info.


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KLKB.Y Share Price and Events
7 Day Returns
0%
OTCPK:KLKB.Y
1.2%
US Food
-0.3%
US Market
1 Year Returns
-
OTCPK:KLKB.Y
1.6%
US Food
3.9%
US Market
KLKB.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kuala Lumpur Kepong Berhad (KLKB.Y) 0% 0% - - - -23%
US Food 1.2% 1.6% 3.2% 1.6% -15.2% 22.5%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • No trading data on KLKB.Y.
  • No trading data on KLKB.Y.
Price Volatility
KLKB.Y
Industry
5yr Volatility vs Market

KLKB.Y Value

 Is Kuala Lumpur Kepong Berhad undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kuala Lumpur Kepong Berhad to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kuala Lumpur Kepong Berhad.

OTCPK:KLKB.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:KLKB.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.565 (1 + (1- 24%) (16.32%))
0.755
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for OTCPK:KLKB.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kuala Lumpur Kepong Berhad is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:KLKB.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (MYR, Millions) Source Present Value
Discounted (@ 7.5%)
2020 742.99 Analyst x7 691.17
2021 873.89 Analyst x6 756.24
2022 861.10 Analyst x1 693.19
2023 944.50 Analyst x1 707.29
2024 997.99 Est @ 5.66% 695.22
2025 1,045.73 Est @ 4.78% 677.67
2026 1,089.30 Est @ 4.17% 656.67
2027 1,130.00 Est @ 3.74% 633.69
2028 1,168.81 Est @ 3.43% 609.73
2029 1,206.48 Est @ 3.22% 585.49
Present value of next 10 years cash flows MYR6,706.36
OTCPK:KLKB.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= MYR1,206.48 × (1 + 2.73%) ÷ (7.5% – 2.73%)
MYR25,994.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= MYR25,994.49 ÷ (1 + 7.5%)10
MYR12,614.72
OTCPK:KLKB.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= MYR6,706.36 + MYR12,614.72
MYR19,321.07
Equity Value per Share
(MYR)
= Total value / Shares Outstanding
= MYR19,321.07 / 1,064.97
MYR18.14
OTCPK:KLKB.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:KLKB.Y represents 0.23849x of KLSE:KLK
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.23849x
Value per Share
(Listing Adjusted, USD)
= Value per Share (MYR) x Listing Adjustment Factor
= MYR 18.14 x 0.23849
$4.33
Value per share (USD) From above. $4.33
Current discount Discount to share price of $5.70
= -1 x ($5.70 - $4.33) / $4.33
-31.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Kuala Lumpur Kepong Berhad is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kuala Lumpur Kepong Berhad's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kuala Lumpur Kepong Berhad's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:KLKB.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in MYR MYR0.76
KLSE:KLK Share Price ** KLSE (2019-06-17) in MYR MYR23.9
United States of America Food Industry PE Ratio Median Figure of 42 Publicly-Listed Food Companies 26.44x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kuala Lumpur Kepong Berhad.

OTCPK:KLKB.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= KLSE:KLK Share Price ÷ EPS (both in MYR)

= 23.9 ÷ 0.76

31.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kuala Lumpur Kepong Berhad is overvalued based on earnings compared to the US Food industry average.
  • Kuala Lumpur Kepong Berhad is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Kuala Lumpur Kepong Berhad's expected growth come at a high price?
Raw Data
OTCPK:KLKB.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
15.3%per year
United States of America Food Industry PEG Ratio Median Figure of 31 Publicly-Listed Food Companies 1.99x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

OTCPK:KLKB.Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.59x ÷ 15.3%

2.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kuala Lumpur Kepong Berhad is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Kuala Lumpur Kepong Berhad's assets?
Raw Data
OTCPK:KLKB.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in MYR MYR9.98
KLSE:KLK Share Price * KLSE (2019-06-17) in MYR MYR23.9
United States of America Food Industry PB Ratio Median Figure of 69 Publicly-Listed Food Companies 2.08x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
OTCPK:KLKB.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= KLSE:KLK Share Price ÷ Book Value per Share (both in MYR)

= 23.9 ÷ 9.98

2.39x

* Primary Listing of Kuala Lumpur Kepong Berhad.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kuala Lumpur Kepong Berhad is overvalued based on assets compared to the US Food industry average.
X
Value checks
We assess Kuala Lumpur Kepong Berhad's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Kuala Lumpur Kepong Berhad has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KLKB.Y Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kuala Lumpur Kepong Berhad expected to grow at an attractive rate?
  • Kuala Lumpur Kepong Berhad's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Kuala Lumpur Kepong Berhad's earnings growth is expected to exceed the United States of America market average.
  • Kuala Lumpur Kepong Berhad's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:KLKB.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:KLKB.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 15.3%
OTCPK:KLKB.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 7.5%
United States of America Food Industry Earnings Growth Rate Market Cap Weighted Average 21.8%
United States of America Food Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:KLKB.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in MYR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:KLKB.Y Future Estimates Data
Date (Data in MYR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 20,517 1,439 1,020 13
2020-09-30 19,522 1,270 939 16
2019-09-30 17,793 1,409 731 15
OTCPK:KLKB.Y Past Financials Data
Date (Data in MYR Millions) Revenue Cash Flow Net Income *
2019-03-31 16,567 1,436 806
2018-12-31 17,311 1,210 769
2018-09-30 18,401 795 753
2018-06-30 19,356 1,364 726
2018-03-31 19,898 1,054 696
2017-12-31 20,683 1,378 880
2017-09-30 21,004 1,404 1,005
2017-06-30 20,383 1,108 1,138
2017-03-31 19,433 1,109 1,279
2016-12-31 17,664 1,012 1,158
2016-09-30 16,506 1,297 1,592
2016-06-30 15,895 988 1,403

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kuala Lumpur Kepong Berhad's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
  • Kuala Lumpur Kepong Berhad's revenue is expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:KLKB.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Kuala Lumpur Kepong Berhad Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:KLKB.Y Future Estimates Data
Date (Data in MYR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 0.94 1.29 0.70 11.00
2020-09-30 0.86 1.21 0.69 14.00
2019-09-30 0.67 0.81 0.55 10.00
OTCPK:KLKB.Y Past Financials Data
Date (Data in MYR Millions) EPS *
2019-03-31 0.76
2018-12-31 0.72
2018-09-30 0.71
2018-06-30 0.68
2018-03-31 0.65
2017-12-31 0.83
2017-09-30 0.94
2017-06-30 1.07
2017-03-31 1.20
2016-12-31 1.09
2016-09-30 1.50
2016-06-30 1.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kuala Lumpur Kepong Berhad is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kuala Lumpur Kepong Berhad's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kuala Lumpur Kepong Berhad has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KLKB.Y Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kuala Lumpur Kepong Berhad's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kuala Lumpur Kepong Berhad's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Kuala Lumpur Kepong Berhad's 1-year earnings growth exceeds its 5-year average (15.7% vs -5%)
  • Kuala Lumpur Kepong Berhad's earnings growth has exceeded the US Food industry average in the past year (15.7% vs -17.8%).
Earnings and Revenue History
Kuala Lumpur Kepong Berhad's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kuala Lumpur Kepong Berhad Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:KLKB.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in MYR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 16,566.79 805.69 795.06
2018-12-31 17,310.64 768.89 795.06
2018-09-30 18,400.50 753.33 795.06
2018-06-30 19,356.30 725.56 868.32
2018-03-31 19,897.76 696.39 868.32
2017-12-31 20,682.91 879.81 868.32
2017-09-30 21,004.04 1,005.13 868.32
2017-06-30 20,383.22 1,138.06 816.29
2017-03-31 19,432.52 1,278.69 816.29
2016-12-31 17,664.16 1,157.66 816.29
2016-09-30 16,505.81 1,592.19 816.29
2016-06-30 15,894.93 1,403.42 723.26
2016-03-31 15,510.77 1,396.91 723.26
2015-12-31 14,873.30 1,450.92 723.26
2015-09-30 13,649.99 869.91 723.26
2015-06-30 12,496.05 854.38 644.31
2015-03-31 11,881.36 821.16 644.31
2014-12-31 11,750.31 913.22 644.31
2014-09-30 11,129.97 991.71 644.31
2014-06-30 10,766.63 1,078.96 638.37
2014-03-31 10,019.01 1,054.46 638.37
2013-12-31 9,320.52 949.51 638.37
2013-09-30 9,147.33 917.74 638.37
2013-06-30 9,152.15 946.34 659.62
2013-03-31 9,453.08 994.05 659.62
2012-12-31 9,741.76 1,026.86 659.62
2012-09-30 10,067.25 1,053.79 659.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kuala Lumpur Kepong Berhad has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kuala Lumpur Kepong Berhad used its assets less efficiently than the US Food industry average last year based on Return on Assets.
  • Kuala Lumpur Kepong Berhad's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kuala Lumpur Kepong Berhad's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kuala Lumpur Kepong Berhad has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KLKB.Y Health

 How is Kuala Lumpur Kepong Berhad's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kuala Lumpur Kepong Berhad's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kuala Lumpur Kepong Berhad is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kuala Lumpur Kepong Berhad's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kuala Lumpur Kepong Berhad's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kuala Lumpur Kepong Berhad Company Filings, last reported 3 months ago.

OTCPK:KLKB.Y Past Debt and Equity Data
Date (Data in MYR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 11,513.21 4,154.48 1,319.47
2018-12-31 11,656.04 4,411.82 1,584.75
2018-09-30 12,310.85 4,283.21 1,462.08
2018-06-30 12,128.87 4,385.33 1,798.18
2018-03-31 11,950.03 5,095.15 1,889.87
2017-12-31 12,465.59 4,826.37 2,175.49
2017-09-30 12,440.04 4,442.76 2,026.56
2017-06-30 12,200.45 4,845.51 1,455.41
2017-03-31 12,315.82 5,111.55 1,560.99
2016-12-31 12,031.89 4,991.13 1,700.08
2016-09-30 11,288.03 4,540.03 2,000.07
2016-06-30 10,630.26 4,631.26 1,438.20
2016-03-31 10,619.89 4,340.15 1,529.29
2015-12-31 11,097.12 4,876.13 2,112.92
2015-09-30 10,128.11 4,594.06 2,083.16
2015-06-30 9,253.70 3,423.54 1,341.60
2015-03-31 8,810.01 3,109.80 1,310.64
2014-12-31 8,704.96 3,062.35 1,413.02
2014-09-30 8,183.20 2,910.42 1,295.78
2014-06-30 8,204.09 2,797.99 1,376.27
2014-03-31 8,501.01 2,824.40 1,462.91
2013-12-31 8,335.12 2,553.06 1,690.96
2013-09-30 7,953.24 2,335.35 1,756.93
2013-06-30 7,587.16 2,402.41 1,899.08
2013-03-31 7,599.14 2,402.31 1,723.32
2012-12-31 7,867.22 2,398.81 2,391.28
2012-09-30 7,507.59 2,478.78 2,358.91
  • Kuala Lumpur Kepong Berhad's level of debt (36.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (33.2% vs 36.1% today).
  • Debt is well covered by operating cash flow (34.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).
X
Financial health checks
We assess Kuala Lumpur Kepong Berhad's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kuala Lumpur Kepong Berhad has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KLKB.Y Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.88%
Current annual income from Kuala Lumpur Kepong Berhad dividends. Estimated to be 2.04% next year.
If you bought $2,000 of Kuala Lumpur Kepong Berhad shares you are expected to receive $38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kuala Lumpur Kepong Berhad's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Kuala Lumpur Kepong Berhad's dividend is below the markets top 25% of dividend payers in United States of America (3.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:KLKB.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Food Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:KLKB.Y Future Dividends Estimate Data
Date (Data in MYR) Dividend per Share (annual) Avg. No. Analysts
2023-09-30
2022-09-30 0.50 1.00
2021-09-30 0.54 13.00
2020-09-30 0.50 16.00
2019-09-30 0.43 15.00
OTCPK:KLKB.Y Past Annualized Dividends Data
Date (Data in MYR) Dividend per share (annual) Avg. Yield (%)
2019-05-15 0.450 1.843
2018-12-07 0.450 1.832
2017-11-22 0.500 2.008
2017-05-22 0.500 2.027
2016-11-16 0.500 2.055
2016-05-16 0.450 1.916
2015-11-18 0.450 1.925
2015-05-20 0.550 2.513
2014-12-30 0.550 2.445
2014-11-19 0.550 2.536
2014-05-21 0.500 2.183
2013-11-20 0.500 2.081
2013-05-22 0.650 2.958
2012-11-21 0.650 3.045
2011-11-23 0.850 3.691
2011-05-25 0.600 2.805
2010-11-29 0.600 2.811
2010-05-26 0.450 2.596
2009-12-23 0.400 2.406
2009-11-24 0.400 2.532
2009-05-27 0.538 4.069
2008-11-21 0.700 6.966

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Kuala Lumpur Kepong Berhad's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Kuala Lumpur Kepong Berhad's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kuala Lumpur Kepong Berhad afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kuala Lumpur Kepong Berhad has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KLKB.Y Management

 What is the CEO of Kuala Lumpur Kepong Berhad's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Oi Lee
AGE 68
TENURE AS CEO 26.5 years
CEO Bio

Mr. Oi Hian Lee has been Chief Executive officer of Kuala Lumpur Kepong Berhad. Since 1993 and has been its Executive director since February 1, 1985. Mr. Lee joined the Company in 1974 as an executive and was subsequently appointed to the Board in 1985. In 1993, he was appointed as the Group’s Chairman/CEO and held the position until 2008, when he relinquished his role as Chairman, but remains as Executive Director and CEO of the Group. He is the Chairman of Batu Kawan Berhad, a company listed on the Main Market of Bursa Malaysia. He is also a Director of Equatorial Palm Oil Plc. He also serves as a member on the Board of Trustees of the Perdana Leadership Foundation, Yayasan Tuanku Bainun, Yayasan KLK, UTAR Education Foundation and Yayasan Wesley. He was formerly the Chairman of the Malaysian Palm Oil Council. Dato’ Lee Hau Hian who is also a Director of KLK is his brother. Tan Sri Dato’ Seri Lee is deemed connected with Batu Kawan Berhad, one of the major shareholders of KLK. He is deemed interested in various related party transactions with the KLK Group. He graduated with a Bachelor of Agricultural Science (Honours) degree from the University of Malaya and obtained his Master in Business Administration from Harvard Business School.

CEO Compensation
  • Insufficient data for Oi to compare compensation growth.
  • Insufficient data for Oi to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Kuala Lumpur Kepong Berhad management team in years:

10.8
Average Tenure
60
Average Age
  • The average tenure for the Kuala Lumpur Kepong Berhad management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jia Zhang Lee

TITLE
Executive Director
COMPENSATION
MYR930K
AGE
36

David Tan

TITLE
Executive Director of Property Division
COMPENSATION
MYR9M
AGE
65

Oi Lee

TITLE
Chief Executive Officer and Executive Director
AGE
68
TENURE
26.5 yrs

Sean Leong

TITLE
Group CFO & Group Chief Accountant
AGE
60
TENURE
1 yrs

Ah Kow Yeow

TITLE
Managing Director of Oleochemicals Division
AGE
65

Lim Hong Joon

TITLE
President Director of Indonesia
AGE
51

Miow Yap

TITLE
Company Secretary
AGE
50
TENURE
10.8 yrs

Olivier Meurzec

TITLE
Chief Executive Officer of Group Manufacturing
Board of Directors Tenure

Average tenure and age of the Kuala Lumpur Kepong Berhad board of directors in years:

5.4
Average Tenure
68.5
Average Age
  • The tenure for the Kuala Lumpur Kepong Berhad board of directors is about average.
Board of Directors

Raja Muhammad Bin Raja Muhammad Ali

TITLE
Independent Non-Executive Chairman
COMPENSATION
MYR566K
AGE
87
TENURE
11.2 yrs

Jia Zhang Lee

TITLE
Executive Director
COMPENSATION
MYR930K
AGE
36
TENURE
1.2 yrs

Oi Lee

TITLE
Chief Executive Officer and Executive Director
AGE
68
TENURE
34.4 yrs

Eng Yeoh

TITLE
Senior Independent Non-Executive Director
COMPENSATION
MYR315K
AGE
72
TENURE
4.7 yrs

Hau-Hian Lee

TITLE
Non-Independent Non-Executive Director
COMPENSATION
MYR281K
AGE
66
TENURE
25.6 yrs

Azlan Bin Mohd Zainol

TITLE
Independent Non-Executive Director
COMPENSATION
MYR299K
AGE
69
TENURE
6.2 yrs

Poh Keat Quah

TITLE
Independent Non-Executive Director
COMPENSATION
MYR277K
AGE
67
TENURE
3.4 yrs

Anne nee Koh Lan Heong

TITLE
Independent Non-Executive Director
COMPENSATION
MYR275K
AGE
69
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Kuala Lumpur Kepong Berhad's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kuala Lumpur Kepong Berhad has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KLKB.Y News

Simply Wall St News

KLKB.Y Company Info

Description

Kuala Lumpur Kepong Berhad engages in the plantation, manufacturing, and property development businesses in Malaysia and internationally. It is involved in the cultivation and processing of palm and rubber products; refining of palm products; and kernel crushing and trading of palm products, as well as plantation activities with a land bank of approximately 285,000 hectares in Malaysia. The company manufactures oleochemicals, non-ionic surfactants and esters, rubber gloves, parquet flooring products, and pharmaceutical products, as well as stores and distributes bulk liquid. In addition, it develops residential and commercial properties; and invests in fixed income trust funds, and quoted and unquoted corporations. Further, the company engages in the farming, management service, money lending, and property management activities. The company operates biogas capture plants; extracts crude palm oil; and manufactures fiber mats, fatty acids, soap noodles, industrial amides, fatty alcohol and methyl esters, palm phytonutrients and other palm derivatives, glycerine, triacetin, special paper chemicals, detergents, auxiliary materials for detergents and cosmetics, alcohol ether sulphates, alcohol sulphates, sulphonic acids, and jams and preserves, as well as basic organic chemicals from agricultural products, and parquet flooring products. Further, it engages in the provision of logistics services related to palm products; operation of holiday bungalows; and, as well as trades in and distributes oleochemicals, commodities, pharmaceutical and bio-pharmaceutical intermediates, and fine chemicals. The company was founded in 1906 and is based in Ipoh, Malaysia.

Details
Name: Kuala Lumpur Kepong Berhad
KLKB.Y
Exchange: OTCPK
Founded: 1906
MYR6,193,167,560
1,064,965,692
Website: http://www.klk.com.my
Address: Kuala Lumpur Kepong Berhad
Bangunan Mayban Trust Ipoh,
Level 9,
Ipoh,
Perak, 30000,
Malaysia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
KLSE KLK Ordinary Shares Bursa Malaysia MY MYR 02. Jan 1992
OTCPK KLKB.Y ADR Pink Sheets LLC US USD 26. Jun 1992
Number of employees
Current staff
Staff numbers
38,000
Kuala Lumpur Kepong Berhad employees.
Industry
Agricultural Products
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 23:51
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/05/15
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.