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Kuala Lumpur Kepong Berhad posted strong early FY2025 results, boosted by higher palm oil prices. However, the short-term outlook is mixed due to expected weaker earnings in the second half from lower prices and production. Analysts are cautious, with some downgrades, though KLK’s fundamentals remain solid.
Kuala Lumpur Kepong Berhad is currently experiencing a sideways trend, with price movement staying within a stable range. Although momentum is limited, any positive shifts in the plantation or commodity sector could support an upward move. Until clearer signals appear, a cautious and patient stance is advisable.
Kuala Lumpur Kepong Berhad (KLK) has shown a slightly weak short-term performance, with recent earnings falling short of expectations despite better-than-expected revenue. The stock has dropped below its 50-day moving average, reflecting cautious market sentiment. Analysts foresee limited downside potential in the near term, and investors should watch for upcoming financial results and industry trends to assess any signs of recovery.
Waiting to see if it will break 21.73. If not will sell off at minimal profit, around 21.70
( thetrademastery.com - Trading journal that helps traders track trades, make informed decisions, and maximize profits)
Bursa plantation company, KL Kepong (KLK) returns over the past decade has shown a declining trend. And it currently falls into the Turnaround quadrant in the Fundamental Mapper. The Fundamental Mapper gives you a first-cut picture. You probably would not consider KLK looking at just the Fundamental Mapper. https://i.postimg.cc/kGJSrjGB/FM-KLK.png
But digging deeper, the main reason for the declining return is because KLK has been expanding into the manufacturing sector (oleo and related chemicals).This expansion enabled KLK to capture additional value but with lower returns. So while it got bigger, the returns declined.
I suspect that as the Group improves its efficiencies, we will see a turnaround in its return. The current market price of KLK reflects a significant discount compared to estimated intrinsic values. That is why I think this picture is good for the contrarian investor https://www.i4value.asia/2024/12/is-klk-investment-opportunity.html#more