Estate acquisitions to lift KLK’s earnings

Kenanga Research said KLK is expected to see a more than 1% increase in core net profit.

PETALING JAYA: Kenanga Research expects Kuala Lumpur Kepong Bhd’s (KLK) recent acquisition of two estates in East Kalimantan from its parent, Batu Kawan Bhd, to provide a slight lift to the company’s earnings.

The research house said KLK is still expected to see a more than 1% increase in core net profit as it plans to use part of its RM2.5bil cash holdings to pay for the entire transaction.