KUALA LUMPUR: OSK Research said'' KL Kepong (KLK)'s 1QFY11 numbers were commendable despite its comparatively low realised CPO price.
'We view KLK as the best managed big cap PLANTATION [] company in Malaysia, which boasts of a tree age profile that is among the better ones in the industry, which will spur double-digit growth in the next five years.
'Strong production growth plus its rubber exposure and downstream business should help to cushion earnings should crude palm oil price turn south. Hence, despite its fair valuation, we are maintaining our Neutral call,' it said.
'We view KLK as the best managed big cap PLANTATION [] company in Malaysia, which boasts of a tree age profile that is among the better ones in the industry, which will spur double-digit growth in the next five years.
'Strong production growth plus its rubber exposure and downstream business should help to cushion earnings should crude palm oil price turn south. Hence, despite its fair valuation, we are maintaining our Neutral call,' it said.
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