$DANCO / 5276 (DANCOMECH HOLDINGS BERHAD)
Research by CGS CIMB
Add (No Change) – Target Price RM0.58

“Steady profit growth bodes well for 2H23F”

■ 1H23 core net profit came in at RM9.5m, at 41% of our and 44% of Bloomberg consensus’ FY23F, in line, as 1H tends to be the weaker half.
■ Given its encouraging revenue growth (+15.7% yoy) and improvement in gross profit margin (+1.7% pts yoy), we look forward to better 2H23F results.
■ Reiterate Add, with an unchanged TP of RM0.58 (based on 10x FY24F P/E).

Analyst:
Prem JEARAJASINGAM
prem.jearajasingam@cgs-cimb.com