Kulim slightly up despite solid 2Q results

KUALA LUMPUR: KULIM (M) BHD [] shares managed to eke out marginal gains on Monday, Aug 29 despite that its net profit for 2Q ended June 30, 2011 surged nine-fold to RM146.29 million from RM14.66 million a year earlier, driven by mainly by higher revenue and profits from its PLANTATION [] division.

At 10.50am, Kulim only added two sen to RM3.70 with 356,100 shares traded.

Last Friday, Aug 26, the company announced revenue rose 32.4% to RM1.80 billion from RM1.36 billion, with higher contribution from all segments.

For the six months ended June 30, Kulim’s net profit surged to RM273.39 million from RM76.55 million in 2010, on the back of a 33.3% jump in revenue to RM3.46 billion from RM2.59 billion.

MIDF Research in note Aug 29 said it had revised upwards its FY11 earnings forecast for Kulim while maintaining its FY12 numbers.

“We are maintaining our Neutral recommendation for Kulim with our target price maintained at RM3.35 using 10x PER based on FY12 EPS.