[%eupX%]
Research by Kenanga Investment Bank
Market Perform - Target Price RM6.91

"Still in the Red"

KESM’s 9MFY23 results disappointed. Its net loss widened due to further decline in loading volume while wages remained elevated. Making the situation worse, other expenses increased 6% on higher utility costs which took effect earlier this year. We widen our FY23F net loss forecast by 59% and slash our FY24F net profit forecast by 81%, reduce our TP by 16% to RM6.91 (from RM8.26) but maintain our MARKET PERFORM call.

Analyst:
Samuel Tan
[%eSMg%]

$KLSE-KESM
Research by Kenanga Investment Bank
Market Perform - Target Price RM6.91

"Still in the Red"

KESM’s 9MFY23 results disappointed. Its net loss widened due to further decline in loading volume while wages remained elevated. Making the situation worse, other expenses increased 6% on higher utility costs which took effect earlier this year. We widen our FY23F net loss forecast by 59% and slash our FY24F net profit forecast by 81%, reduce our TP by 16% to RM6.91 (from RM8.26) but maintain our MARKET PERFORM call.

Analyst:
Samuel Tan
samueltan@kenanga.com.my