Kuala Lumpur Kepong Shares Down 0.45 Pct In Early Trade

KUALA LUMPUR, Aug 26 (Bernama) -- Kuala Lumpur Kepong Bhd’s (KLK) share price slid 0.45 per cent in early trade today, following a recent third-quarter (3Q FY2026) net loss for the current financial year.

At 10.33 am, its shares eased 10 sen to RM21.82, with 136,700 shares traded.

KLK posted a net loss of RM1.34 billion in 3Q against a RM346.59 million net profit in the same quarter a year ago after accounting for a RM1.62 billion impairment loss on investment in an overseas associate, United Kingdom-listed Synthomer plc.

Revenue rose to RM7.05 billion from RM6.43 billion a year ago.

Meanwhile, Kenanga Investment Bank Bhd (IB) has projected a stronger earnings outlook, with crude palm oil (CPO) prices expected to remain elevated amid a high risk of supply further tightening.

Risks include rising biodiesel usage due to the ongoing West Asia conflict, disruptions to sunflower exports as Ukraine’s main Black Sea port and naval base in Odesa faces increasing Russian attacks, and the near-certainty of a severe El Nino later this year.

Kenanga IB also said new farming practices and investments — new pollination weevils in Indonesia,  improved drainage and water management, and the use of machinery on hilly estates — should help improve KLK’s upstream productivity.

“However, fresh fruit bunch production is expected to decline slightly in FY2027 due to the expected El Nino.

“Stronger property contribution can also be expected as KLK proceed to unlock the value of 3,925 hectares for property development,” it said in a note.

Kenangan IB has maintained an “Outperform” call on KLK, with a higher target price of RM25.80 from RM25.50.

-- BERNAMA