Apex Equity Holdings (Apex Equity) reported an 88% decline in 3QFY22 net profit to RM1m, mainly due to lower brokerage income and securities transactions. Excluding non-operating items which include a gain on disposal of an associate company, core net profit for 9MFY22 stood at RM4.1m. This only accounted for 61% of our full-year estimates, mainly due to lower-than-expected contribution from the stock and securities broking business. As such, we cut our FY22-24F earnings estimates by an average of 14% as we forecast a lower brokerage income due to lower securities transactions. Given uncertainties surrounding global economies amid the rising interest rate environment, we believe equity markets would remain sluggish in the medium term. We maintain our Neutral rating on Apex Equity with a revised TP of RM1.03 based on 0.65x FY23F PBR.
Source: PublicInvest Research - 1 Dec 2022
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Created by PublicInvest | Apr 22, 2024