PETALING JAYA: RHB Research is keeping a “buy” call on Kuala Lumpur Kepong Bhd
(KLK) with a higher target price of RM27.10 from RM26.65, considering the group’s listed investments’ current market prices and its latest stake in Aura Muhibah Sdn Bhd.
Last year, KLK’s stake in property developer Aura Muhibah rose to 60% after UEM Land Bhd disposed 20% of its stake in the property developer to KLK.
The research house said its target price comprised an unchanged forecast 25 times price-to-earnings ratio (P/E) for the financial year 2021 ending Sept 30 (FY21) for the plantation units, 15 times P/E for the manufacturing business and a 70% discount applied to the revalued net asset value (RNAV) of its property landbank.
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