[%TRMB%] 
Research by Kenanga
Market Perform – Target Price RM7.06

“Returns to the Black in 4QFY23”

KESM reported narrower-than-expected FY23 losses as it returned to the black in 4QFY23 owing to improved contribution from the burn-in and test segment, coupled with reduced losses at the discontinued EMS segment. However, its earnings volatility remains. We raise our FY24F net profit to RM2.7m (from RM0.53m), lift our TP by 2% to RM7.06 (from RM6.91) but maintain our MARKET PERFORM call.

Analyst:
Samuel Tan 
[%UcTj%]

$KLSE-KESM 
Research by Kenanga
Market Perform – Target Price RM7.06

“Returns to the Black in 4QFY23”

KESM reported narrower-than-expected FY23 losses as it returned to the black in 4QFY23 owing to improved contribution from the burn-in and test segment, coupled with reduced losses at the discontinued EMS segment. However, its earnings volatility remains. We raise our FY24F net profit to RM2.7m (from RM0.53m), lift our TP by 2% to RM7.06 (from RM6.91) but maintain our MARKET PERFORM call.

Analyst:
Samuel Tan 
samueltan@kenanga.com.my