Company analysis is crucially vital for investors or researchers to conduct and evaluate the securities, the information regarding its company profile, products and services and not least the companys profitability. Basic information such as the company's mission statement and vision as well as the values and goals is also included. This is also where the investors have glimpse on the history of the company and events that shaped the structure of the company. Financial details of the company are yet another important part in the analysis. Financial information is thorough analyzed by reviewing the financial statement and performing the important financial ratios and the information obtained is later compared to the other competitors' company in the same category.
3.2 The Company's Profile
3.2.1 Company Background
Kuala Lumpur Kepong Berhad ("KLK"), a leading Malaysian plantation company, traces its origin back to 1906 when The Kuala Lumpur Rubber Company, Limited ("KLR") was set up in London to oversee some 600 hectares of rubber plantation, including some coffee, planted in Malaysia. By 1960 through various acquisitions, the hectares was increase to 29,843 ha. Covering Malaya, Indonesia and Nigeria. KLR's interests in Indonesia and Nigeria was disposed off in 1973 and 1976 respectively.
KLR in 1960 changed its name to Kuala Lumpur-Kepong Amalgamated Limited ("KLKA") and in 1973 under a scheme of reconstruction, KLKA went into liquidation with KLK taking over assets and liabilities of KLKA. The move to bring its domicile back to Malaysia was initiated by KLK's Founder Chairman, the late Tan Sri Dato' Seri Lee Loy Seng.
KLK Group has since then reorganised and expanded to over 160,000 hectares oil palm and rubber located in Peninsular Malaysia, Sabah and Indonesia. The Group diversified into Sabah in 1983 and re-entered into Indonesia in 1994.
Plantations remain KLK's core business. However, in recognition of the need to cushion the effects of fluctuating commodity prices, the KLK Group had in the 1990s expanded successfully downstream into resource-based manufacturing including cocoa processing, the manufacture of fatty acids, glycerine and derivatives. With Malaysian joint-venture partners, KLK has vegetable oil operations in Pakistan and the People's Republic of China. Capitalising on the strategic location of its land bank in Peninsular Malaysia, KLK has also ventured into property development in 1990. Since 1996 through Crabtree & Evelyn, the Group is involved in the manufacturing and retailing of personal care products, toiletries, home fragrances and fine foods worldwide.
KLK in make the company establish it have mission and objective the mission is "To offer quality products and services at competitive prices. To be a good and responsible corporate citizen" and the some objective that must complete is to earn a fair return on investments, to maintain steady dividend payments and adequate dividend cover, to sustain growth through re-investment of retain profits, to maintain high standard of business ethics and practices, and to fulfil our social responsibilities in the community in which we operate.
KLK berhad have a some policy that must to follow to make sure that company establish, that policy is divided into three that is environmental policy, quality policy and occupational safety and health policy. In environmental policy we are committed to keep our environment clean, safe and healthy and will continue to promote greater environmental awareness in our daily activities. Preservation of the environment is the responsibility of everybody in the Company. In quality policy is KLK commitment is towards quality at a consistently high level. We emphasise on quality of products, service and competitive pricing to meet or exceed consumers' requirement and will remain innovative and adopt new technologies to cater for changing needs.
Third policy is occupational safety and health policy, we seek the highest standard of safety and health care in the pursuit of our business activities. We are therefore fully committed to meet the legislative objectives and moral obligations in order to create, build and promote a safe and healthy work environment and culture through compliance with all the laws and regulations related to Occupational Safety and Health, ensuring that standards and safe working procedures are clearly defined, applied and updated, providing adequate training and information and instructions on safety and health aspects to all our employees.
3.2.2 Principle activities
KLK is amongst the top plantation companies in Malaysia, Plantation is the main business of the company, with a land bank in excess of 243,000 hectares, located in Peninsular Malaysia (70,000 hectares), Sabah (40,000 hectares) and Indonesia (133,000 hectares). KLK were produce oil palm product and rubber product. Palm oil is the most traded vegetable oil in the world today and has been used as a dietary constituent for nearly five thousand years.
Palm oil is obtained from the mesocarp of the Elaeis guineensis fruit, simply by cooking, mashing and pressing. In this process, the seeds are separated and after cracking and removing the shell, the kernel can be processed to yield palm kernel oil and palm kernel cake.
The rubber tree, Hevea brasiliensis, is a native of the Amazonian forest. Grown now in parts of Africa and Asia, it is one of the world's most closely studied and carefully tended plants.
Rubber is elastic, flexible, airtight, watertight, long lasting and insulating, to mention just a few of its properties. There are thousands of products, which take advantage of these useful properties.
KLK also not only focus on plantation, KLK also involve in manufacturing, property and retailing.
Manufacturing
The core activity of the Division is KLK Oleo which is one of the world's largest manufacturers of palm-based oleochemical products and their derivatives, with a product portfolio covering fatty acids & glycerine, fatty amides, soap noodles & soap bars, esters, and fatty alcohols. Recent investments and acquisition activities have allowed the Group to venture further downstream into products like methyl ester sulfonate, amines, biodiesel, fine chemicals and surfactants.
The KLK Oleo Group operates several oleochemical complexes in Asia, strategically located at the Klang Valley in Malaysia, and Zhangjiagang & Shanghai in China. From these strategic bases, we support a global clientele across Asia, US and Europe. The Group also operates storage facilities in Asia, US and Europe enabling the Group to maintain world class standards in servicing our customers.
The European-based subsidiary, Kolb has 40 years experience in producing nonionic surfactants by alkoxylation. Another subsidiary, Standard Soap, based in UK is a leading private label contract manufacturer of soap and toiletry products for the UK, Europe, USA, Australia and Middle East markets. Through Masif Latex Products, we produce latex rubber household and industrial gloves specializing in OEM and private labels for export to all major world markets. BKB Hevea Products, another subsidiary, manufactures quality engineered hardwood flooring for both local and export markets around the world. Through an associate company, Barry Callebaut Malaysia Sdn Bhd (formally known as KL-Kepong Cocoa Products Sdn Bhd), the Group is involved in cocoa manufacturing and production of high quality cocoa liquor, butter and powder.
Property
With the opening of the North-South Highway in Peninsular Malaysia, the potentiality of some of KLK's plantation land has been unlocked for property development. The Property Division started with its joint venture in Kumpulan Sierramas (M) Sdn. Bhd. to develop the successful "SIERRAMAS" project in Sungai Buloh.
The Division in 2002 embarked on its own 230 acres property development project known as "DESA COALFIELDS" off Sungai Buloh, Selangor. In the pipeline, the Property Sector will be developing another 1000 acres of mixed residential, comprising terrace houses, semi-detached and detached bungalows and commercial development across the road from Desa Coalfields.
Retailing
Crabtree & Evelyn ("C&E") is a leading international manufacturer and retailer of prestige personal care products, toiletries, home fragrance products and fine foods marketed under the well-recognized brand name of "Crabtree & Evelyn". Headquartered in Woodstock, Connecticut, USA, through its fully integrated operations, C&E controls all aspects of its business from design, research & development, manufacturing and sourcing to distribution and retailing of its products. C&E has over 480 stores worldwide in 40 countries throughout North & South America, UK, Europe, Middle East, Asia and Australia. Its products are manufactured in its production plants located in the USA. C&E products are marketed through its own retail stores, speciality stores, catalogues, hotel amenities, in flight and duty free shops, private label accounts, through the Internet and third party distributors.
Subsidiaries & associates
Kuala Lumpur Kepong Berhad (KLK) is engaged in the business of producing and processing palm products and natural rubber on its plantations. The Company's subsidiaries are engaged in the business of plantation, manufacturing, retailing, property development and investment holding. The Company has a plantation land bank of more than 240,000 hectares in Malaysia (Peninsular and Sabah) and Indonesia (Belitung, Sumatera and Kalimantan). It operates in six business segments: plantation, manufacturing, retailing, property development, investment holding and others. Its subsidiaries include P.T. Sekarbumi Alamlestari, P.T. Langkat Nusantara Kepong and KLK Bioenergy Sdn.bhd.
% holding
Kuala Lumpur Kepong Bhd, one of the biggest rubber estate owners in Malaysia, expanded its holding to 24,000ha from some 20,000ha five years ago.
In April 2009, the Company, via one of its subsidiary, acquired a 17% equity interest in PT Sekarbumi Alamlestari (PT SA) from Forever Green Venture Ltd., which increased its interest in PT SA to 65%. During the fiscal year ended September 30, 2008, the Company acquired Ladang Perbadanan-Fima Berhad, and disposed of a 60% stake in Barry Callebaut Malaysia Sdn Bhd, formerly KL-Kepong Cocoa Products Sdn Bhd.
3.2.3 Properties hold
Major Groups Properties
KLK core business is plantation, the Group has expanded downstream into resource-based manufacturing, in particular oleochemicals, cocoa processing and rubber processing, involved in the manufacture and retail of personal care products, toiletries, home fragrances and fine foods.
The Group operates an oleochemical complex located in Rawang, Selangor, which produces a wide range of vegetable oil based fatty acids & glycerine, ethylene-bis-stearamide (a plastic additive), coconut diethanolamide (a foam booster for shampoo), and vegetable based soap noodles for the toilet soap industry. KLK's vegetable oil refineries in China produce edible oil for use in the food and confectionery industry. Another subsidiary, Standard Soap, based in UK is involved in the contract manufacturing of soaps and toiletries for the UK and Europe markets. The Group also operates one of Asia's largest cocoa manufacturing plant producing high quality cocoa liquor, butter and powder. KLK also produce latex examination, rubber household and industrial gloves for overseas markets. KLK's wooden parquet flooring factory in Ipoh produces quality parquet mainly for the export market. "SIERRAMAS" project in Sungai Buloh, one of KLK joint ventured projects.
Tenure (Lease/Free) & Site Areas
Properties of the group plantations in peninsular Malaysia at Ladang Allagar, Trong, Perak that is freehold for oil palm estate, Ladang Ayer Hitam, Bahau, Negeri Sembilan is freehold that for rubber and oil palm estate, Ladang Gunong Pertanian, Simpang Durian, Negeri Sembilan is leasehold expiring in 2077 for oil palm estate, Ladang Kuala Kangsar Padang Rengas, Perak isfreehold leasehold expiring in 2896 for rubber and oil palm .
In east Malaysia at Ladang Bornion Kinabatangan, Sabah, that is leasehold expiring in 2078 for oil palm estate, Ladang Bukit Tabin Lahad Datu, Sabah, is leasehold expiring in 2079 for oil palm estate .
In Indonesia at Kebun SWP Belitung, Indonesia, that is leasehold expiring in 2020 for oil palm estate, Kebun Mandau Riau, Indonesia is leasehold expiring in 2020 for rubber and oil palm estate .
In other operations Malaysia at B.K.B. Hevea Products Ipoh, Perak, that is leasehold expiring in 2089 for parquet factory, KL-Kepong Cocoa Products Port Klang, Selangor, is leasehold expiring in 2088 for Cocoa products factory Warehouse, KL-Kepong Rubber Products Lahat, Perak that is Freehold for rubber gloves factory . KSP Manufacturing, Rawang, Selangor that is freehold for Soap noodles factory , Colville Holdings, Setul, Negeri Sembilan that is freehold for property development, A33, Lembah Beringin Homestead, Selangor that is freehold for bungalow lot.
In Australia at Erregulla Farm, Mingenew, Western Australia that is freehold for sheep and cereal farm and in people's republic of China at Nanjiang Port Area, Tianjin that is leasehold expiring in 2045 for bulking installation, Dingong Miao, Baisha Zhou, Wuchang, Wuhan that is leasehold expiring in 2044 for Refinery.
3.3 Company's Management
Here we take a good look at the company's management information include the corporate information, major share holders, share distribution and share information.
3.3.1 Corporate Information
3.3.1.1 Board of Directors
R. M. ALIAS
Chairman
Independent Non-Executive Director
Aged 78, Malaysian
Joined the Board on 1 July 1978 and has been the Chairman of KLK since 2008. He is also the Chairman of the Remuneration Committee and a member of the Nomination Committee of the Board. He holds a Bachelor of Arts (Honours) degree from the University of Malaya, Singapore, a Certiï¬cate in Public Administration from the Royal Institute of Public Administration, London and has attended the Advanced Management Programme at Harvard Business School, US. His directorships in other listed companies include Batu Kawan Berhad and Cerebos Paciï¬c Limited (Singapore). He is also a trustee of Tan Sri Lee Loy Seng Foundation and Yayasan KLK. He has no family relationship with any director/major shareholder of KLK. He is deemed interested in various transactions between the KLK Group and certain companies carried out in the ordinary course of business by virtue of his common directorships in these companies. He has attended all the ï¬ve (5) Board of Directors' meetings held in the ï¬nancial year ended 30 September 2010.
TAN SRI DATO' SERI LEE OI HIAN
Chief Executive Officer
Executive Director
Aged 59, Malaysian
Joined the Board on 1 February 1985 and is the CEO of KLK. He is also Chairman of Batu Kawan Berhad. He also serves as a trustee of several charitable organisations. He was formerly the Chairman of the Malaysian Palm Oil Council. He graduated with a Bachelor of Agricultural Science (Honours) degree from the University of Malaya and obtained
his Masters in Business Administration from Harvard Business School, US. He joined the Company in 1974 as an executive and was subsequently appointed to the Board in 1985. In 1993, he was appointed as the Group's Chairman/CEO and held the position until 2008, when he relinquished his role as Chairman, but remains as Executive Director and CEO of the Group. Dato' Lee Hau Hian who is also a Director of KLK is his brother. Tan Sri Dato' Seri Lee is deemed connected to Batu Kawan Berhad, one of the substantial shareholders of KLK. He is deemed interested in various related party transactions with the KLK Group. He has attended four (4) out of ï¬ve (5) Board of Directors' meetings held in the ï¬nancial year ended 30 September 2010.
DATO' LEE HAU HIAN
Non-Independent Non-Executive Director
Aged 57, Malaysian
Joined the Board on 20 December 1993, he is a member of the Nomination Committee and the Remuneration Committee of the Board. Dato' Lee is the Managing Director of Batu Kawan Berhad and a director of Yule Catto & Co. plc. He is the President of The Perak Chinese Maternity Association. Besides serving as a director of Yayasan De La Salle and See Sen Chemical Berhad, he is also a trustee of Tan Sri Lee Loy Seng Foundation
and Yayasan KLK. He graduated with a Bachelor of Science (Economics) degree
from the London School of Economics and has a Masters in Business Administration degree from Stanford University, US. He is the brother of Tan Sri Dato' Seri Lee Oi Hian who is the
CEO of KLK and is deemed a connected party to Batu Kawan Berhad, a substantial shareholder of KLK. He is deemed interested in various related party transactions with the KLK Group. He has attended all the ï¬ve (5) Board of Directors' meetings held in the ï¬nancial year ended 30 September 2010.
DATUK ABDUL RAHMAN BIN MOHD. RAMLI
Independent Non-Executive Director
Aged 71, Malaysian
Joined the Board on 11 September 1999, he serves as a member of the Audit Committee of the Board. He is a member of the Institute of Chartered Accountants in Australia, the
Malaysian Institute of Certiï¬ed Public Accountants (MICPA) and the Malaysian Institute of Accountants (MIA). Datuk Abdul Rahman was General Manager of United Asian Bank Berhad, Group Managing Director of Pernas Sime Darby Berhad and Group Chief Executive of Golden Hope Plantations Berhad prior to joining the KLK Board. He is currently a Board member of DRB-HICOM Berhad, a public company listed on the Main Market of Bursa Malaysia. He has no family relationship with any director/major shareholder of KLK. He is deemed interested in various transactions between the KLK Group and certain companies carried out in the ordinary course of business by virtue of his common directorships in these companies. He has attended all the ï¬ve (5) Board of Directors' meetings held in the ï¬nancial year ended 30 September 2010.
TAN SRI DATO' THONG YAW HONG
Independent Non-Executive Director
Aged 80, Malaysian
Joined the Board on 8 March 1995. He is the Chairman of the Nomination Committee and a member of the Remuneration Committee of the Board. He is a Fellow of the Institute of Bankers Malaysia.Tan Sri Thong is the Co-Chairman of Public Bank Berhad and Public Mutual Berhad, Chairman of Berjaya Sports Toto Bhd and Malaysia Property Incorporated. His directorships in other public companies are Batu Kawan Berhad, Glenealy Plantations
(Malaya) Bhd, HHB Holdings Bhd, Malaysian South-South Corporation Bhd, Public Islamic Bank Berhad, Public Investment Bank Bhd and LPI Capital Berhad. Among his many other appointments, he had served in the Economic Planning Unit in the Prime Minister's Department since 1957 and became its Director-General from 1971 to 1978 and served as SecretaryGeneral, Ministry of Finance from 1979 until his retirement in 1986. He was formerly the Chairman of the Employees Provident Fund Board. He currently serves as a member on the Boards of Trustees of Program Pertukaran Fellowship Perdana Menteri
Malaysia, Tun Razak Foundation, Malaysian Institute of Economic Research and Yayasan Wah Seong. He is also a member of the Working Group of the Executive Committee for the National Implementation Task Force, and a member of the Investment Committee for the Unit Trust Funds managed by Public Mutual Berhad. He graduated with a Bachelor of Arts (Honours) degree in Economics from University of Malaya and a Masters degree in Public
Administration from Harvard University and has attended the Advanced Management Programme from Harvard Business School. Tan Sri was the Pro-Chancellor of Universiti Putra Malaysia till June 2006. On 17 September 2006, he was conferred the Honorary Doctorate of Economics by Universiti Putra Malaysia. He has no family relationship with any director/major shareholder of KLK. He is deemed interested in transactions between the
KLK Group and certain companies carried out in the ordinary course of business by virtue of his common directorships in these companies. He has attended all the ï¬ve (5) Board of Directors' meetings held in the ï¬nancial year ended 30 September 2010.
DATO' YEOH ENG KHOON
Independent Non-Executive Director
Aged 63, Malaysian
Was appointed to the Board on 24 February 2005, he is the Chairman of the Audit Committee of the Board. He is also a director of Batu Kawan Berhad and See Sen
Chemical Berhad, as well as a trustee of Yayasan KLK. His past working experience included banking, manufacturing and the retail business. He obtained his Bachelor of Arts (Honours) degree in Economics (Business Administration) from the University of
Malaya in 1968 and was called to the Bar of England and Wales at Lincoln's Inn in 1979.
He has no family relationship with any director/major shareholder of KLK. He is deemed interested in various transactions between the KLK Group and certain companies
carried out in the ordinary course of business by virtue of his common directorships in these companies. He has attended all the ï¬ve (5) Board of Directors' meetings held in the ï¬nancial
year ended 30 September 2010.
ROY LIM KIAM CHYE
Executive Director
Aged 60, Malaysian
Was appointed to the Board on 1 June 2007, Mr. Lim holds a Bachelor of Economics (Honours) degree and a Diploma in Education (Distinction) from the University
of Malaya. He has also attended the Senior Management Development Programme from Harvard Business School and Advanced Management Programme from INSEAD.
Mr. Lim is the KLK Group Plantations Director. He has been with the KLK Group since 1975. Prior to his current position, he was the Marketing Director overseeing commodities trading
for the plantations division. He is also a council member of the Malaysian Agricultural Producers Association and Malaysian Palm Oil Association. He has no family relationship with any director/major shareholder of KLK. He has no personal interest in any transactions involving the KLK Group carried out in the ordinary course of business. He has attended all the ï¬ve (5) Board of Directors' meetings held in the ï¬nancial year ended 30 September 2010
KWOK KIAN HAI
Independent Non-Executive Director
Aged 66, Singaporean
Joined the Board on 27 May 2009. During the year, he was appointed as a member of the Audit Committee of the Board.He graduated from the University of Singapore with a degree in Chemistry and Mathematics. He was a Managing Director of a Sime Darby unit before joining Kuok Group as General Manager of Pasir Gudang Edible Oil. He served as Managing Director of Kuok Oils and Grains until 2008 and thereafter was appointed Joint Chief Operation Ofï¬cer of Wilmar International Ltd before retiring in 2009. In addition, he was a Council member of Malaysian Palm Oil Council and a Board member of Palm Oil Reï¬ners Association of Malaysia ("PORAM") for 15 years. He also previously served as Chairman of PORAM. He has no family relationship with any director/major shareholder of KLK. He is deemed interested in various transactions between the KLK Group and certain companies carried out in the ordinary course of business by virtue of his common directorships in these companies. He has attended all the ï¬ve (5) Board of Directors' meetings held in the ï¬nancial year ended 30 September 2010.
3.3.1.2 Audit Committee
Members :
Dato' Yeoh Eng Khoon - Chairman
(Independent Non-Executive Director)
Datuk Abdul Rahman bin Mohd. Ramli
(Independent Non-Executive Director and MIA member)
Kwok Kian Hai
(Independent Non-Executive Director)
Appointed on 24 February 2010
YM Tengku Robert Hamzah
(Independent Non-Executive Director)
Retired on 24 February 2010
3.3.1.3 Registered Office/ Registrar
Wisma Taiko,
1, Jalan S. P. Seenivasagam,
30000 Ipoh,
Perak Darul Ridzuan,
Malaysia.
3.3.2 Major Shareholders
Number Of Shares
Name
Direct
Deemed Interest
Total
Tan Sri Dato' Seri Lee Oi Hian
72,000
496,350,027
496,422,027
Dato' Lee Hau Hian
83,250
496,350,027
496,433,277
Di-Yi Sdn Bhd
-
496,350,027
496,350,027
High Quest Holdings Sdn Bhd
-
496,350,027
496,350,027
Wan Hin Investments Sdn Bhd and group
448,500
495,901,527
496,350,027
3.4 Company's Event and Activities
3.4.1 Company Development
Kuala Lumpur Kepong Berhad (KLK) is engaged in the business of producing and processing palm products and natural rubber on its plantations. The company's subsidiaries are engaged in the business of plantation, manufacturing, retailing, property development and investment holding. The company has a plantation land bank of more than 210,000 hectares in Malaysia (Peninsular and Sabah) and Indonesia (Belitung, Sumatra and Kalimantan). In April 2009, the company, via one of its subsidiary, acquired a 17% equity interest in PT Sekarbumi Alamlestari (PT SA) from Forever Green Venture Ltd, which increased its interest in PT SA to 65%.
Achievement
From the 1990s, the KLK company moved downstream into resource-based manufacturing, such as oleochemicals and its derivatives and specialty chemicals. The company's manufacturing operations also expended throughjoinventures and acquisitions in Malaysia, Pakistan, the People's Republic of China, Switzerland, Netherlands and Germany.
The vertical integration of KLK's plantation business would have a cushioning effect to the uncertain fluctuations in world commodity prices.
The market price of KLK shares has increased steadily over the years from about RM1.50 per share in January 1976 to RM17 per share as at the close of the financial year ended 30 September 2010.
Recent Development
Kuala Lumpur Kepong Berhad announced that Employees Fund Board holds 128,078,250 shares representing a 12.03% stake in the company. Earlier, Employees Provident Fund Board held 15.11% stake in the company.
Prospect
They are many prospects in Kuala Lumpur Kepong Berhad (KLK) such as plantation, manufacturing, property and retailing.
In plantation, oil palm is the predominant crop with an annual production of 2.8 million tonnes of Fresh Fruit Bunches (FFB) and which is expected to increase rapidly in the years ahead as the vast new plantings in Sabah and Indonesia are progressively brought into harvesting. Processing of the crop is carried out in KLK's own mills and refineries into crude palm oil, RBD palm olein and stearin, and kernel oil and cake. The declining rubber area in Peninsular Malaysia, in favour of oil palm, has been made up to an extent by the new rubber area from KLK's plantations in Indonesia. This will enable KLK to maintain a steady yearly production of about 22,000 tonnes of premium SIR/SMR grades and latex concentrate, meeting with the MS ISO 9002 standards.
In manufacturing, the core activity of the Division is KLK Oleo which is one of the world's largest manufacturers of palm-based oleochemical products and their derivatives, with a product portfolio covering fatty acids & glycerine, fatty amides, soap noodles & soap bars, esters, and fatty alcohols. Recent investments and acquisition activities have allowed the Group to venture further downstream into products like methyl ester sulfonate, amines, biodiesel, fine chemicals and surfactants.
With the opening of the North-South Highway in Peninsular Malaysia, the potentiality of some of KLK's plantation land has been unlocked for property development. The Property Division started with its joint venture in Kumpulan Sierramas (M) Sdn. Bhd. to develop the successful "SIERRAMAS" project in Sungai Buloh.
Crabtree and Evelyn (C&E) is a leading international manufacturer and retailer of prestige personal care products, toiletries, home fragrance products and fine foods. Headquartered in Woodstock, Connecticut, USA, through its fully integrated operations, C&E controls all aspects of its business from design, research & development, manufacturing and sourcing to distribution and retailing of its products. C&E has over 480 stores worldwide in 40 countries throughout North & South America, UK, Europe, Middle East, Asia and Australia. C&E products are marketed through its own retail stores, speciality stores, catalogues, hotel amenities, inflight and duty free shops, private label accounts, through the Internet and third party distributors.
Major Events
Kuala Lumpur Kepong Berhad announced that its wholly-owned subsidiary, KLK Emmerich, Rheinsee 312 and Uniqema OHG, all of which are incorporated in Germany, have applied to the local courts in Germany for a merger. The Company has received notice from the local courts in Germany that the merger process was completed on September 29, 2010. As a result, the separate existence of Rheinsee 312 and Uniqema OHG had ceased and merged with and into the Surviving Corporation, KLK Emmerich, on September 29, 2010.
Swiss family-owned ethoxylator and surfactants producer Dr W Kolb has accepted a takeover offer from Malaysian company Kuala Lumpur Kepong (KLK). The acquisition is pending European Commission approval, but should be finalised in the first quarter of 2007.
Kuala Lumpur Kepong Berhad also have a change in Board of Directors. In 24 February 2010, Datuk Abdul Rahman Bin Mohd Ramli is redesignated as an Independent Non-Executive Director of KLK. Apart from that, YM Tengku Robert Hamzah retired from the Board of Directors of KLK at the 37th Annual General Meeting.
3.5 Competitors & Market Controls
Company market share & size.
Table 3.5.1 Kuala Lumpur Kepong Berhad (KLK) market size for 4 year show in below diagrams.
Year
Revenue (RM)
2006
3,916,649
2007
5,067,627
2008
7,855,425
2009
6,658,308
Diagram 3.5.1 Kuala Lumpur Kepong Berhad (KLK) market share for 4 year show in below diagrams.
Competitors market share & size.
Table 3.5.2 Chintek Plantations Berhad market size for 4 year show in below diagrams.
Year
Revenue (RM)
2006
83,189
2007
91,021
2008
165,299
2009
112,266
Diagram 3.5.2 Chintek Plantations Berhad market share for 4 year show in below diagrams.
Table 3.5.3. Tabung Haji Plantation Berhad (TH) market size for 4 year show in below diagrams.
Year
Revenue (RM)
2006
150,000
2007
200,000
2008
275,000
2009
350,000
Diagram 3.5.3 Tabung Haji Plantation Berhad (TH) market share for 4 year show in below diagrams.
Market share distribution/ performances/ changes.
KLK's performance is expected to show firm in view of the following:
satisfactory performance from the plantation sector due to the prevailing higher CPO prices and the expected increase in FFB output
higher profits from the manufacturing sector on the expectation of increasing demand arising from the recovery of the global economy
improving performance from the retailing sector pursuant to the completion of the restructuring exercise.
3.6 Swot Analysis
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.
3.6.1 Strengths
Kuala Lumpur Kepong Berhad was already known as an established empire,based on their engagement in the business of production and processing of palm products and natural rubber. The company has six reportable business segments, namely, Plantation, Manufacturing, Retailing, Property Development, Investment Holding and Others. The Plantation segment is engaged in the cultivation and processing of palm and rubber products and refines palm products. The Manufacturing segment manufacture oleo chemicals, soaps, rubber gloves, pharmaceutical products. It also stores and distributes bulk liquid. The Retailing segment retails and distributes toiletries. The Property Development segment develops residential and commercial properties.
This profile provides a perfect strategic analysis by holistically. The profile helps you formulate strategies that augment your business by enabling you to understand your partners, customers and competitors better. KLK, with an issued and paid-up capital of RM 1,067,504,692 is listed on the Main Market of Bursa Malaysia Securities Berhad. Its shareholders' fund currently exceeds RM 5.5 billion.
KLK has been listed in the main board of Bursa Saham Malaysia,in meants,that they have a strong patents and brand's name. It is because KLK Berhad are well known for their good reputation and self-strengthness,making it as an empire of profitable for investors. Their strength lies in their manipulation of the main sector of agriculture and industry. KLK Berhad has a lot of influence and assets in the country,especially when a large number of government-owned land has been handed over to the KLK Berhad.
3.6.2 Weakness
KLK Berhad has a large cost structure,creates a large amount of market price and not in the category of 'warm-owned'. In other aspect,KLK Berhad actually does not have the point of weaknesses due to the stability of the company. KLK Berhad are already established and able to control the company's stability even during the economic recession.
3.6.3 Opportunities
Agriculture and industrial sector are the key why the KLK Berhad are stay maintain and hold the title as the biggest company in Malaysia. The objectives of company itself is to fulfilled the customer needs. KLK used the opportunity to stabilize their position by bringing the big impact into the main-need-sector of country. As been known,Malaysia really need oil palm,for example,as the main of import and export of national product. KLK Berhad grabbed the situation to be as the main supply to the oil palm market by its thousands of hectar of palm land. This is why KLK Berhad is being said as a big empire and excellent choices for the investors to invest.
3.6.4 Threats
The major threats of KLK Berhad are exactly by the competitors itself. But,in how,majority of any other competitors of KLK Berhad are also a part of the company's shareholder itself,for instant,Batu Kawan Berhad. In short,KLK Berhad is not the only company that have a good reputation in their profile,so they always have to maintain their position,in the state of profit and investment.
