KMLOONG Q4FY08 net profit was RM23.6mil and Full Year net year was RM 96,2 mil. The FY2008 EPS was 31.15sen. The management expect another robust EPS growth on Financial Year 2009 due to higher CPO price, output grow from milling operation, the sales of carbon credits, palm fibre oil and palm kernel shell.
Source from OSK Analyst
Kim Loong’s FFB production grew by 12.4% FY08 to 248.3k tonnes, which was in line with our forecast of 244.6k tonnes. FFB yield was commendable at 22k tonnes per mature ha. However, CPO production was slightly higher than expected at 139.0k tonnes against our forecast of 134.8k tonnes from :
1. Economies of scale from the higher utilization rate of its Kota Tinggi and Telupid mills,
benefiting from general recovery in Malaysia’s FFB production.
2. What we believe was higher than expected oil extraction rate from the solvent extraction plant at its Kota Tinggi mill, which helped to widen its milling margin.
3. CPO price averaged RM2,354/t during the period against our assumption of RM2,266/t after was accounting for Sabah sales tax
Cash position doubled. Kim Loong generated RM87.0m operating cash flow during the period compared to RM39.4m in the previous FY. Kim Loong now sits comfortably on a net cash position of RM72.3m, up from RM10.8m as at end FY07. The company has declared a final dividend of 5 sen less tax, bringing its full year’s dividend to 13 sen.
