What have been priced in to TP RM4.50?

CLSA estimate 350M Revenue, 89M net profit & 13 cent EPS for FY 31-Mar-23.

The estimated revenue breakdown as above figure.

CLSA assumes HDD & Semi segment is stagnant. 300M Revenue from EV & ES from these contribution:-

• 4 Battery formation line from Customer T
• 6 ECU lines from Customer Z which will be recognized over next 3 years
• 2 additional regenerative braking line

What have not been priced in?

1. JV with APCS Thailand -- Energy Absolute  -- Electrolyte filler and EV battery assembly lines. CLSA estimate an additional RM560m per line upside from the Thai JV.
2. Supply electrolyte filler line to Customer T, which potentially carries 3x the ASP (vs current RM50m per battery pack line). Electrolyte filling refers to the process of filling a lithium ion battery with electrolyte liquid, allowing electrical current to flow between the anode and the cathode.
3. More than 4 battery formation line to Customer T and its Battery Supplier (P / L / C).  Customer T might ramp up its production to produce more car to met its order.
4. Energy Storage project from Customer T. PxxxxPack & MxxxPack. The group has also been engaged for its energy storage business. Details are still scarce at the moment and management said it will share more about it at a future date. The North American EV maker has a large-scale energy storage solution that helps stabilise grids and prevent power outages, eliminating the need for gas peaker plants. Each unit can store >3MWh of energy, which is equivalent to powering an average of 3.6k homes for one hour.