Kim Loong Resources Bhd ('KMLoong') is involved in the cultivation of oil palm & palm oil milling. KMLoong owns about 12,960 hectares of oil palm estates located mainly in
Recent Financial Results
KMLoong has just announced its results for QE31/7/2007, where its net profit jumped by 159% q-o-q or 183% y-o-y to RM11.8 million, Turnover has soared 64% q-o-q or 74% y-o-y to RM111 million. The improved performance is attributable to 30%-increase in FFB prices as well as 26%-increase in CPO prices.
If KMLoong could maintain the same earning of 6.71 sen in QE31/7/2007 for the full year, its EPS would jump to 26.84 sen. Based on its closing price as at Sept 28 of RM2.41, KMLoong would be trading at a PE of 9.0 times. The stock is trading at a slight discount to the plantation sector's average PE of about 13 times.
From the chart below, you can see that KMLoong is in a steady uptrend. Ignoring the sahrp spike-down in February & August, a buy at about RM2.20/30 level is probably near its uptrend "line".
Chart: KMLoong's daily chart as at Sept 28 (courtesy of Tradesignum.com)
Based on the good financial performance & nice technical outlook, KMLoong is a BUY for the medium-term.