KLK / Lee Oi Hian

[winston]

not vested

Looking forward to a better FY25E indeed

Positives priced in; maintain HOLD

We hosted KLK on a post-results brief, and felt reassured that FY25E will be a better year with YoY earnings growth emanating from both the upstream and manufacturing divisions.

The lumpy impairment on Synthomer is unlikely to recur in FY25E.

The group effective tax rate should normalise too.

We keep our +69% core EPS growth estimates for FY25E.

Trading at 19x FY25E PER, the positives are priced in.

Maintain HOLD & TP of MYR21.30 on 19x FY25E PER, its -0.5SD of 6Y mean. We prefer SDG MK (BUY, CP: MYR5.06, TP: MYR5.41).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/424765.pdf