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Research by Hong Leong Investment
Hold (Maintain) – Target Price RM0.36

“Steady performance in 3Q23”

Evergreen is expected to record similar results in 3Q23 as 2Q23, as performances across all three segments (Thailand, Indonesia and Malaysia) are expected to remain steady. The Malaysian side is still hampered by low demand from the US. Although there has been some pickup in US orders, it still remains unclear whether it would sustain for subsequent quarters. Indonesia is currently running at full capacity with expectations of increased contributions post relocation of the MDF line in 2024, while Thailand remains steady with sustained orders from the Middle East. Maintain HOLD with a higher TP of RM0.36 (from RM0.29) pegged to a higher P/B multiple of 0.3x (from 0.24x) based on FY24 BVPS of RM1.20.

Analyst:
Tan Je Jyne 
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$KLSE-EVERGRN
Research by Hong Leong Investment
Hold (Maintain) – Target Price RM0.36

“Steady performance in 3Q23”

Evergreen is expected to record similar results in 3Q23 as 2Q23, as performances across all three segments (Thailand, Indonesia and Malaysia) are expected to remain steady. The Malaysian side is still hampered by low demand from the US. Although there has been some pickup in US orders, it still remains unclear whether it would sustain for subsequent quarters. Indonesia is currently running at full capacity with expectations of increased contributions post relocation of the MDF line in 2024, while Thailand remains steady with sustained orders from the Middle East. Maintain HOLD with a higher TP of RM0.36 (from RM0.29) pegged to a higher P/B multiple of 0.3x (from 0.24x) based on FY24 BVPS of RM1.20.

Analyst:
Tan Je Jyne 
JJTan@hlib.hongleong.com.my

$EVERGRN / 5101 (EVERGREEN FIBREBOARD BERHAD)