El Nino-related yield pressure to temper KLK's near-term outlook
Public Investment Bank 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. KLK's third-quarter results were distorted by a RM1.6 billion non-cash impairment on its Synthomer investment, but underlying operations remained resilient.