- Kim Loong Resources (Kim Loong) expects to see its profit grow by around 20 percent in FY18 in view of the higher crude palm oil (CPO) and improved milling operations margin.
- The group’s 3Q17 net profit rose 3.3 percent to RM25.1 million on higher profit from its plantation operations, while revenue increased 18.7 percent to RM248.1 million.
- 9M17 net profit slid 11.1 percent to RM54.6 million even though revenue climbed 8.7 percent to RM636.6 million.
- FY17 has seen a squeeze in milling operations margins due to lower crop levels as a result of the El Nino. But moving forward, the group expects its palm oil yield to return to healthier levels by FY19 with better crop levels.
Significance: Kim Loong currently has three palm oil milling plants across Malaysia with two in Sabah and one in Johor Baru. The group is hoping to open a fourth plant in Pantu, Sarawak by 2019.