[%MzAe%] 
Research by RHB
Buy (Maintain) – Target Price RM1.50

“Bottoming Out; Keep BUY”

Keep BUY, new MYR1.50 TP from MYR2.23, 84% upside. Texchem Resources showed promising signs in 3Q23 as losses narrowed, driven by improved market demand and more favourable seasonality. While acknowledging recent weak results, we anticipate a further narrowing of losses – leading to a turnaround in FY24, thanks to the gradual improvement in market conditions and the low FY23 base. The current depressed valuation offers a valuable entry point into an established company with diverse and underappreciated businesses.

Analysts:
Lee Meng Horng 
[%LBVu%]

Tai Yu Jie 
[%xWgI%]

$KLSE-TEXCHEM 
Research by RHB
Buy (Maintain) – Target Price RM1.50

“Bottoming Out; Keep BUY”

Keep BUY, new MYR1.50 TP from MYR2.23, 84% upside. Texchem Resources showed promising signs in 3Q23 as losses narrowed, driven by improved market demand and more favourable seasonality. While acknowledging recent weak results, we anticipate a further narrowing of losses – leading to a turnaround in FY24, thanks to the gradual improvement in market conditions and the low FY23 base. The current depressed valuation offers a valuable entry point into an established company with diverse and underappreciated businesses.

Analysts:
Lee Meng Horng 
lee.meng.horng@rhbgroup.com

Tai Yu Jie 
tai.yu.jie@rhbgroup.com

$TEXCHEM / 8702 (TEXCHEM RESOURCES BERHAD)