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Research by Public Invest Bank 
CEASING COVERAGE – Target Price N/A 

“Ceasing Coverage”
Wegmans’ 2QFY23 headline net profit declined by 45.9% YoY to RM3.6m, as furniture demand continued to be affected by the rising interest rates. After adjusting for gain on foreign exchange, Wegmans core net profit came in at RM2.6m, bringing 1HFY23 core net profit to RM2.4m. We deem the results to be below expectations, as it accounts for 29% of our full-year estimates. The discrepancy in our numbers was mainly due to the weaker-than-expected sales volume. Due to an absence of significant re-rating catalyst in light of a declining furniture demand dragged by the rising inflationary pressure, we are ceasing our coverage on Wegmans. Our last call and target price are Underperform and a TP of RM0.15, based on a PE multiple of 8x FY24F EPS.

Analysts:
Wong Ling Ling
[%BJjW%]

$KLSE-WEGMANS
Research by Public Invest Bank 
CEASING COVERAGE – Target Price N/A 

“Ceasing Coverage”
Wegmans’ 2QFY23 headline net profit declined by 45.9% YoY to RM3.6m, as furniture demand continued to be affected by the rising interest rates. After adjusting for gain on foreign exchange, Wegmans core net profit came in at RM2.6m, bringing 1HFY23 core net profit to RM2.4m. We deem the results to be below expectations, as it accounts for 29% of our full-year estimates. The discrepancy in our numbers was mainly due to the weaker-than-expected sales volume. Due to an absence of significant re-rating catalyst in light of a declining furniture demand dragged by the rising inflationary pressure, we are ceasing our coverage on Wegmans. Our last call and target price are Underperform and a TP of RM0.15, based on a PE multiple of 8x FY24F EPS.

Analysts:
Wong Ling Ling
wong.lingling@publicinvestbank.com.my

$WEGMANS / 0197 (WEGMANS HOLDINGS BERHAD)