Public Invest keeps Neutral on KLK, flags El Nino and gearing risks
Public Investment Bank has maintained a Neutral call on Kuala Lumpur Kepong Bhd with a target price of RM23.86, citing potential El Nino-related yield pressure in Indonesia and elevated gearing. The bank noted that KLK's third-quarter results were distorted by a RM1.6 billion impairment on its Synthomer investment, but its underlying business remained resilient.