[%jBFh%] 
Research by Public Investment Bank
Neutral (maintain) - Target Price RM0.21

"Near-term Concerns Remain"

Wegmans’ 4QFY22 core net profit grew by 125.5% YoY to RM3.8m in 4QFY22, mainly driven by the strengthening of the USD and lower effective tax rate. Full-year FY22 core net profit of RM17.7m, was within expectations, accounting for 99% of our full-year forecasts. However, we are adjusting down our FY23-24F earnings forecasts by an average of 4%, as we remain concerned over the near-term furniture demand as the rising interest rates environment should negatively affect the housing market. Following our earnings adjustment, our TP is reduced to RM0.21, based on a PE multiple of 8x FY23F EPS. Our Neutral call on Wegmans is maintained.

Analyst(s):
Wong Ling Ling
[%gZoR%]

$KLSE-WEGMANS 
Research by Public Investment Bank
Neutral (maintain) - Target Price RM0.21

"Near-term Concerns Remain"

Wegmans’ 4QFY22 core net profit grew by 125.5% YoY to RM3.8m in 4QFY22, mainly driven by the strengthening of the USD and lower effective tax rate. Full-year FY22 core net profit of RM17.7m, was within expectations, accounting for 99% of our full-year forecasts. However, we are adjusting down our FY23-24F earnings forecasts by an average of 4%, as we remain concerned over the near-term furniture demand as the rising interest rates environment should negatively affect the housing market. Following our earnings adjustment, our TP is reduced to RM0.21, based on a PE multiple of 8x FY23F EPS. Our Neutral call on Wegmans is maintained.

Analyst(s):
Wong Ling Ling
wong.lingling@publicinvestbank.com.my

$WEGMANS / 0197 (WEGMANS HOLDINGS BERHAD)