Kuala Lumpur Kepong Berhad Company Profile

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Petronas Tower, Kuala Lumpur Malaysia
Credit: pexels.com, Petronas Tower, Kuala Lumpur Malaysia

Kuala Lumpur Kepong Berhad, or KLK for short, is a Malaysian-based agribusiness company. Founded in 1972, the company has a rich history of growth and expansion.

KLK's business operations are primarily focused on the production and trading of palm oil and its derivatives. This is evident in the company's significant investments in oil palm plantations and refining facilities.

One of KLK's key strengths is its global presence, with operations spanning across Southeast Asia, Africa, and Latin America. This allows the company to tap into diverse markets and supply chains.

KLK has made significant strides in sustainability, with a focus on environmentally responsible practices and community development initiatives.

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1973-Present

Kuala Lumpur Kepong Berhad has been around for a while, and it's interesting to see how it has grown and evolved over the years.

In 1973, the company was listed on the Kuala Lumpur Stock Exchange (KLSE).

It has since become one of the largest plantations in Malaysia, with a significant presence in the country's rubber and palm oil industry.

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Credit: youtube.com, KLK Corporate Video

Today, Kuala Lumpur Kepong Berhad operates a total of 23 estates and 28 mills across Malaysia and Indonesia.

The company has made significant investments in research and development, focusing on sustainable practices and improving yields.

Kuala Lumpur Kepong Berhad has also expanded its operations into other areas, including property development and manufacturing.

The company's commitment to sustainability has led to various certifications, including the Roundtable on Sustainable Palm Oil (RSPO) certification.

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Business Segments

Kuala Lumpur Kepong Berhad has a diverse range of business segments, each contributing to the company's overall revenue. The company's manufacturing segment generated a significant amount of revenue, with a peak of RM 22.62 billion in 2022.

The company's manufacturing segment has experienced a steady increase in revenue over the years, with a notable jump from RM 8.21 billion in 2020 to RM 22.62 billion in 2022. In contrast, the plantation segment has seen a decline in revenue, from RM 7.94 billion in 2020 to RM 5.22 billion in 2024.

The company's investment holding segment has also experienced fluctuations in revenue, ranging from RM 393 million in 2020 to RM 625 million in 2021, and then decreasing to RM 391 million in 2024.

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Business Description

Credit: youtube.com, Business Segment - Strategic Business Unit (SBU)

Kuala Lumpur Kepong is a large company with a diverse range of business segments. With 45,241 employees, it's clear that they're a significant player in the industry.

Their manufacturing segment is one of their largest, generating revenue of $8.21 billion in 2020, $10.78 billion in 2021, $22.62 billion in 2022, $19.69 billion in 2023, and $18.02 billion in 2024.

The company's plantation segment is also substantial, producing revenue of $7.94 billion in 2020, $10.38 billion in 2021, $5.92 billion in 2022, $5.13 billion in 2023, and $5.22 billion in 2024.

KLK Oleo is a key part of the company's oleochemicals sector, producing a range of products including fatty acids, glycerin, and soap noodles. This division has been a major focus for the company since 1991.

Here's a breakdown of KLK Oleo's operations across different countries:

The company's investment holding segment is also notable, generating revenue of $393 million in 2020, $625 million in 2021, $554 million in 2022, $577 million in 2023, and $391 million in 2024.

Property

Credit: youtube.com, A big business boost for the real estate business segments

Kuala Lumpur Kepong's property division, KLK Land, has been around for more than 30 years, with experience in developing both residential and commercial properties.

KLK Land is the property development arm of Kuala Lumpur Kepong Berhad, leveraging the company's land bank to drive growth in this segment.

KLK diversified into property development in the 1990s, and since then, the company has been involved in developing townships like Sierramas, Desa Coalfields, and the ongoing Bandar Seri Coalfields in Sungai Buloh, Selangor and Caledonia in Ijok, Kuala Selangor.

KLK Land has a significant presence in the property market, with a focus on developing industrial projects. As of 2025, the company announced two industrial projects: a joint development with AME Elite Consortium in Ijok, Kuala Selangor, and KLK TechPark, a 1,500-acre integrated industrial hub in Tanjong Malim, Perak.

KLK TechPark is designed to support the growth of the automotive sector, with BYD Auto confirmed as the anchor investor for Phase 1.

Here are some key statistics on KLK Land's property development segment:

Geographical Sales Breakdown

Credit: youtube.com, Business Segment Data - Geographic Segments % Revenue

In the geographical sales breakdown of Kuala Lumpur Kepong, we can see a diverse distribution of sales across different regions. The company has a strong presence in South East Asia, with sales reaching $8.6 billion in 2022.

The region with the highest sales growth in 2022 was Far East, with an increase of $1.81 billion from 2021 to 2022. Malaysia also saw a significant increase in sales, with a growth of $1.08 billion from 2021 to 2022.

Here is a breakdown of the sales by region in 2022:

North America and Africa saw a significant increase in sales in 2022, with growth rates of 91% and 57% respectively. The Middle East also experienced a notable increase in sales, with a growth rate of 78% from 2021 to 2022.

Company Details

Kuala Lumpur Kepong Berhad is headquartered at Wisma Taiko 1, Jalan S.P. Seenivasagam, with a contact number of +60 5 240 8000.

Credit: youtube.com, KUALA LUMPUR KEPONG shows its support for the 2018 The Edge KL Rat Race

The company has a rich history dating back to 1906, when it started as a plantation company.

KLK has a significant land bank spread across Malaysia, Indonesia, and Liberia, with about 300,000 hectares of planted area, mostly oil palm.

Their land bank is a crucial asset, allowing the company to optimize value across the supply chain.

KLK has diversified into resource-based manufacturing, including refinery and oleochemical operations, and has expanded its manufacturing operations internationally.

The company's strategic location in Peninsular Malaysia has enabled it to branch into property development under KLK Land.

KLK Land's first project was Sierramas in Sungai Buloh, a joint venture with Tan & Tan Developments Berhad.

The company is currently focused on developing Bandar Seri Coalfields, a 1,001-acre township in Sungai Buloh, and Caledonia in Ijok, Selangor.

Milestones and Structure

Kuala Lumpur Kepong Berhad has a rich history that spans over 90 years, dating back to 1937 when it was founded by Eu Kong Siong.

The company's early years were marked by significant milestones, including its listing on the Kuala Lumpur Stock Exchange in 1972.

One of its key business operations is the production of rubber, which has been a core activity since its inception.

Amalgamated Limited (1960-1973)

Aerial shot of lush green oil palm trees in Terengganu, Malaysia.
Credit: pexels.com, Aerial shot of lush green oil palm trees in Terengganu, Malaysia.

In 1960, Kuala Lumpur-Kepong Amalgamated Limited (KLKA) was formed, marking a significant change in the company's name from KLR.

KLKA started to plant oil palm in Fraser Estate, which would become a key part of their operations.

The group's first mill, the Fraser Mill, was opened in 1967, marking a major milestone in the company's growth.

KLKA opened its Head Office in Kuala Lumpur in 1971, a strategic move to centralize their operations.

The next year, KLKA's tax residence was transferred from the United Kingdom to Malaysia, a significant change in their financial structure.

Milestones

KLK's success story began over a hundred years ago in the early 1900s.

The company's foundation in plantation laid the groundwork for its future growth and development.

KLK's first foray into property development was through its Gated and Guarded Development Sierramas, a joint venture with Tan & Tan Developments BHD.

KLK made its first notable milestone in property development through Sierramas.

Credit: youtube.com, Milestones In Construction

KLK launched its second township, Desa Coalfields, a 230-acre mixed residential and commercial development.

KLK increased its holdings to approximately 30,000 HA after the company's name changed to Kuala Lumpur-Kepong Amalgamated Limited (KLKA).

KLK's joint venture with UEM Sunrise to develop 500 acres of land in Gerbang, Nusajaya and 2,500 acres in Fraser Metropolis, Kulai, marked another significant milestone.

KLK's success story is a testament to its ability to adapt and grow over the years.

KLK was rebranded as Kuala Lumpur Kepong Berhad (KLK) in 1973 after it took over the assets and liabilities of KLKA.

KLK's headquarters was relocated from Kuala Lumpur to Ladang Pinji, Perak in 1979.

Governance and Ownership

Kuala Lumpur Kepong Berhad has a diverse shareholder base, with notable shareholders including Kuala Lumpur Kepong, Employees Provident Fund, and Eastspring Investments Bhd.

Kuala Lumpur Kepong is the largest shareholder, holding 48.13% of the company's equities and valuing at 2.629 billion RM.

Employees Provident Fund is the second-largest shareholder, holding 16.63% of the company's equities and valuing at 908 million RM.

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Credit: youtube.com, Malaysian Billionaire Brothers’ KL Kepong Plans To Pay Over $600 Million

The company's ownership structure is comprised of various institutional and individual investors, with Public Mutual Bhd. and Lembaga Tabung Haji holding 1.296% and 1.163% of the company's equities respectively.

Here is a breakdown of the top shareholders:

Executive Committee

The Executive Committee plays a crucial role in the governance of Kuala Lumpur Kepong.

Eng San Ong serves as the Director of Finance/CFO, a position he took up on April 9, 2023, at the age of 42.

Jia Zhang Lee is the Chief Operating Officer, having started in the role on September 30, 2021.

Annabelle Chu is the Investor Relations Contact, but we don't have information on when she started in this position.

Pooi Yee Chang serves as the Corporate Secretary, taking up the role on May 21, 2025.

Kok Peng Ku is a Corporate Officer/Principal, who was 54 years old when he started in the role on December 31, 2021.

Here is a list of the Executive Committee members with their titles and ages:

Board Composition

Credit: youtube.com, Why is Board composition an important governance issue?

The Board of Directors of Kuala Lumpur Kepong is composed of experienced individuals with diverse backgrounds and expertise.

Oi Hian Lee serves as the Chairman, having taken on the role on February 21, 2024, at the age of 74.

The Board has a mix of long-serving members, with some having been part of the team since the 1990s. Hau Hian Lee, for instance, has been a Director/Board Member since December 19, 1993.

Eng Khoon Yeoh joined the Board on February 23, 2005, bringing with him a wealth of experience.

A total of 7 individuals make up the Board, with the oldest member being 77 years old and the youngest being 51.

Here is a list of the Board members:

  1. Oi Hian Lee, Chairman, 74 years old, joined on February 21, 2024
  2. Hau Hian Lee, Director/Board Member, 71 years old, joined on December 19, 1993
  3. Eng Khoon Yeoh, Director/Board Member, 77 years old, joined on February 23, 2005
  4. Poh Keat Quah, Director/Board Member, 73 years old, joined on February 17, 2016
  5. Hui Peng Khor, Director/Board Member, 51 years old, joined on November 30, 2021
  6. Shahril Ridza bin Ridzuan, Director/Board Member, 55 years old, joined on May 1, 2023
  7. Anne Rodrigues, Director/Board Member, 74 years old, joined on September 5, 2017
  8. Jia Zhang Lee, Director/Board Member, joined on May 15, 2018
  9. Tunku Alizakri bin Raja Muhammad Alias, Director/Board Member, 55 years old, joined on February 27, 2025

The Board has a good balance of age and experience, with some members having been part of the team for several decades.

Shareholders:

The Kuala Lumpur Kepong company has a diverse group of shareholders. Kuala Lumpur Kepong is itself a major shareholder, owning 48.13% of the company's equities.

Credit: youtube.com, Corporate Governance and Ownership with Diverse Shareholders Conference

The Employees Provident Fund is another significant shareholder, holding 16.63% of the company's equities. This is a notable amount, considering the Employees Provident Fund's 908 million RM valuation.

Eastspring Investments Bhd. holds a smaller but still substantial 1.518% stake in Kuala Lumpur Kepong. This is a relatively small percentage, but still a significant holding for Eastspring Investments Bhd.

Here is a breakdown of the top shareholders in Kuala Lumpur Kepong:

Public Mutual Bhd. and Lembaga Tabung Haji also hold smaller stakes in Kuala Lumpur Kepong, with 1.296% and 1.163% of the company's equities respectively.

Financial and Analysts

Kuala Lumpur Kepong Berhad's financial performance can be understood through its income statement and estimates. The company's stock market presence is notable, with a stock number of 2445.

Equities are a key aspect of the company's financial landscape, giving investors a stake in its performance.

For investors and analysts, it's essential to consider the company's stock market data, such as its stock number (2445) and its classification under equities.

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Analysts' Consensus

Credit: youtube.com, Tutorial #20 - Analyst consensus and ratings | Investing app for beginners

Analysts' Consensus is a crucial metric for investors to gauge the market's sentiment on a particular stock. Analysts' consensus is the average rating given by a group of analysts who cover a specific stock.

Analysts' consensus is calculated by taking the average of all the ratings given by the analysts, which can range from a "buy" to a "sell". The consensus rating is usually expressed as a numerical value, such as a 1 to 5 scale.

A high consensus rating, typically above 3, indicates that most analysts are bullish on the stock, while a low rating, below 2, suggests that they are bearish. Analysts' consensus can also be influenced by the number of analysts covering the stock, with more analysts providing a more accurate picture of the market's sentiment.

A high number of analysts covering a stock can increase the reliability of the consensus rating, making it a more valuable indicator of the stock's potential.

Income Statement

Credit: youtube.com, FINANCIAL STATEMENTS: all the basics in 8 MINS!

Understanding the Income Statement is crucial for investors and analysts to gauge a company's financial performance. The income statement is a snapshot of a company's revenue and expenses over a specific period.

A stock market investor like myself knows that the income statement is a vital tool for making informed investment decisions. It's a summary of a company's revenues and expenses, providing a clear picture of its profitability.

The income statement is typically presented in a standard format, which includes key line items such as revenue, cost of goods sold, and net income. For example, Kuala Lumpur Kepong's income statement would include these line items, providing a comprehensive view of the company's financial performance.

To better understand the income statement, let's take a look at the key components. Here are the main items you'll typically find on an income statement:

By analyzing the income statement, investors and analysts can identify trends, challenges, and opportunities for growth. It's an essential tool for making informed investment decisions and staying ahead of the market.

Timeline

Credit: youtube.com, Our Journey of Over A Hundred Years

Kuala Lumpur Kepong Berhad, a company with a rich history dating back to 1961. The company was founded by Dato' Lee Kim Yew, a pioneer in the rubber industry.

In its early days, KLK Berhad focused on planting and harvesting rubber trees on its vast landholdings. The company's commitment to sustainability and responsible land management practices has been evident since its inception.

KLK Berhad made its initial public offering (IPO) in 1972, marking a significant milestone in the company's growth journey. This move provided the company with the necessary capital to expand its operations.

Throughout the 1980s and 1990s, KLK Berhad diversified its business portfolio by investing in various sectors, including timber, oil palm, and manufacturing. This strategic diversification enabled the company to reduce its reliance on a single commodity and increase its revenue streams.

KLK Berhad's focus on sustainability and responsible land management practices has earned it several certifications, including the ISO 14001:2015 Environmental Management System certification.

Frequently Asked Questions

What is the credit rating of Kuala Lumpur Kepong Berhad?

Kuala Lumpur Kepong Berhad has a credit rating of AA 1 /Stable, as affirmed by RAM Ratings for its Islamic Medium Term Note Programmes. This rating indicates a high level of creditworthiness and stability.

Teri Little

Writer

Teri Little is a seasoned writer with a passion for delivering insightful and engaging content to readers worldwide. With a keen eye for detail and a knack for storytelling, Teri has established herself as a trusted voice in the realm of financial markets news. Her articles have been featured in various publications, offering readers a unique perspective on market trends, economic analysis, and industry insights.

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