(KLCCSS MK/HOLD/RM7.80/Target: RM7.50)

Despite a 0.6% yoy improvement in top-line, core net profit dropped by 3.3% yoy, largely due to temporary hiccups in both of KLCCSS’ anchor segments (office and retail). We were assured that the remaining 40% vacant space at Menara ExxonMobil will be filled up by 3Q17 while the major reconfiguration exercise at Suria KLCC will be fully completed by 4Q17. Maintain HOLD. Target price: RM7.50. Entry price: RM6.80.

Source: UOB Kay Hian Research - 23 May 2017