PETALING JAYA: Maybank Investment Bank Research (Maybank IB) is generally positive about the earnings potential of Kuala Lumpur Kepong Bhd
’s (KLK) KLK Techpark in Tanjung Malim, Perak.
Based on a recent visit, the research house found KLK Techpark to be highly accessible with Tanjung Malim witnessing a revival, partly boosted by an upcoming BYD assembly plant.
BYD has chosen KLK Techpark to establish its first electric vehicle assembly plant in Malaysia.
Besides KLK TechPark, there are at least two other development sites in the vicinity. One of the sites is part of Proton City.
Since the launch of KLK Techpark in August last year, development has been progressing well with large tract of old oil palm trees being cleared at the site.
The 1,500-acre freehold integrated industrial hub (1,300 acres for industrial use and 200 acres for residential support) has an estimated gross development value of RM3.5bil over a 10-year development period.
Note that BYD has committed to 150 acres in phase one and infrastructure work is targeted for completion by end-2026.
Phase two, which is designed as a vendor park, is scheduled for launch in the first half of 2026.
“The maiden profit contribution from BYD land sales is likely to be in the financial year 2026 (FY26) and FY27,” said TA Research.
While KLK has yet to provide any guidance, the research house said: “We estimate the BYD land sales may easily net over RM65mil in profits over the development period.”
TA Research said it made no changes to its FY26-FY27 earnings forecasts for KLK as it have incorporated some BYD contribution as reflected in the jump in property operating profits to RM109mil and RM111mil, respectively.
It kept a “hold” call on the stock with a target price of RM20.30 as the share price has priced-in KLK TechPark’s near-term earnings potential.
