United Malacca Bhd (UMCCA)’s results for the quarter ended July 31, 2024 (1QFY25) came in within expectations.
The group’s quarterly revenue amounted to RM163.9m, compared to RM136m a year ago, and its core net profit of RM31m for the quarter rose due to strong Malaysian harvest recovery, firm CPO prices and low cost that offset unusually poor Indonesian yields.
FY25-26 earnings outlook still appears positive, at RM610.2m and RM646.9m, as CPO prices continue to hold and Indonesian yields to recover eventually.
Kenanga maintains its FY25-26 core net profit forecasts of RM70.9m and RM79m respectively, citing risk factors typically faced by the sector such as adverse weather, softer commodity prices and rising cost of labour, fertiliser and fuel.
Analysts maintain their OUTPERFORM call at a target price of RM6.00. As at 12:00 noon on Friday, UMCCA stock traded at RM5.12. (Google-hosted Bursa updates)
