The Star Online (20/04/2021) - PETALING JAYA: The recent landbank acquisitions and impact from ongoing replanting exercise are expected to boost Kim Loong Resources Bhd’s fresh fruit bunches (FFB) production growth by about 10% year-on-year (y-o-y) for the financial year (FY) ending Jan 31,2022.
The group has announced that it would be buying close to 2,900 acres of fully-cultivated oil palm plantation in Kinabatangan, Sabah in four separate deals worth a combined RM92.5mil expected to be completed in the second quarter of this year.The total land acquired is equivalent to 8% of Kim Loong’s current planted area.
UOB Kay Hian (UOBKH) Research said with the acquisitions, an additional 30,000 tonnes of FFB could be produced. This is about 10% of the group’s current FFB production, the research firm said in its latest report.
Kim Loong’s management also expected a total processing quantity of about 1.3 million to 1.4 million tonnes of FFB production for FY22, which is similar to FY21.
According to UOBKH, the company is expected to continue with its replanting programme of 1,000ha of oil palm trees per year over FY22-FY26 to replace its old palm trees.
On the expansion of the group’s power plant, the research firm said the company was likely to generate a revenue of RM5mil from supplying power to the grid.
Read more at https://www.thestar.com.my/business/business-news/2021/04/20/kim-loong-gets-ffb-production-growth-boost