[%llAN%] 
Research by Public Investment Bank
Neutral – Target Price RM1.46

“Ready for Next Demand Up-Cycle”

BP Plastic Berhad (BPPLAS) reported a stronger quarter with 3QFY23 net profit of RM7.3m (+35.6% YoY) attributed to better product mix, though weaker QoQ (- 26.4%) owing to higher production cost. Cumulative 9MFY23 net profit of RM25.3m (+1.3% YoY) is within consensus but above our expectations, accounting for 77.8% and 84.1% of full-year estimates, respectively. Our forecasts are kept unchanged. While we remain positive on the long-term prospects of BPPLAS, near-term outlook for the Group may continue to be challenged by weak demand for industrial and logistic packaging amid the global economic weakness. We maintain our Neutral call with an unchanged PE-based TP of RM1.46 (10x FY24 EPS). On a side note, BPPLAS declared a third interim dividend of 1.5 sen (3QFY22: 1.0sen).

Analyst:
Denny Oh 
[%zrar%]

$KLSE-BPPLAS 
Research by Public Investment Bank
Neutral – Target Price RM1.46

“Ready for Next Demand Up-Cycle”

BP Plastic Berhad (BPPLAS) reported a stronger quarter with 3QFY23 net profit of RM7.3m (+35.6% YoY) attributed to better product mix, though weaker QoQ (- 26.4%) owing to higher production cost. Cumulative 9MFY23 net profit of RM25.3m (+1.3% YoY) is within consensus but above our expectations, accounting for 77.8% and 84.1% of full-year estimates, respectively. Our forecasts are kept unchanged. While we remain positive on the long-term prospects of BPPLAS, near-term outlook for the Group may continue to be challenged by weak demand for industrial and logistic packaging amid the global economic weakness. We maintain our Neutral call with an unchanged PE-based TP of RM1.46 (10x FY24 EPS). On a side note, BPPLAS declared a third interim dividend of 1.5 sen (3QFY22: 1.0sen).

Analyst:
Denny Oh 
research@publicinvestbank.com.my