Buy recommendation on Kulim with an unchanged 12-month target price of MYR8.50. With the sale of NatOleo, Kulim will focus on the plantation and food & restaurant businesses, which are
more profitable and hold good growth prospects. The group’s young plantations and new acquisitions in Papua New Guinea and the Solomon Islands (PNG/SI) will be the growth drivers for the plantation
division. The ongoing promotional campaign, aggressive new store expansion, and a recovery in consumer spending will support the growth for the KFC and Pizza Hut chains.