The Group saw revenue for 1QFY24 decline to RM1.15bn (-10.9% YoY, - 0.7% QoQ) as order flows from key customers remain subdued, reflective of near-term demand still being impacted by tighter monetary conditions and likely shifts in consumer preference toward staples. Consequently, headline net profit came in weaker at RM49.0m (-19.3% YoY, -25.9% QoQ). While broadly meeting our expectations at 23% of full-year numbers but missing consensus at 21%, we are compelled to cut forward earnings (FY24-FY26) estimates by 22.3% on average to account for the unexpectedly weaker demand. Given the uncertain near-term outlook, we also lower our earnings multiple to 17x (20x previously), which sees our PE-derived target price also lowered to RM0.74 (RM1.02 previously). While we continue to like the longer-term investment merits of the company, we maintain our Neutral call given limited variations to our target price. A first interim dividend of 0.3sen was declared.
Source: PublicInvest Research - 21 Dec 2023
Chart | Stock Name | Last | Change | Volume |
---|
Created by PublicInvest | May 03, 2024
Created by PublicInvest | Apr 26, 2024