[%LdIM%] 
Research by Hong Leong Investment Bank
Buy (From Hold) – Target Price RM5.50

“Lifted by lower finance and tax expense”

DKSH’s 3QFY23 core net profit of RM27.3m (-6.4% QoQ, +21.7% YoY) brought 9MFY23’s total to RM97.5m (+14.8% YoY). The results beat both our and consensus projections, accounting for 83% and 88% of full-year forecasts. Key discrepancy to our forecast was due to lower-than-expected finance costs and tax expenses. We revise our FY23-25f forecasts upwards by less than 3%, primarily to incorporate a lower finance cost assumption. Post earnings revision, our TP is raised to RM5.50 (from RM5.43 previously). Our TP is derived based on a P/E multiple of 6.7x (at +1.5SD of DKSH’s 5-year average) on its FY24f EPS of 82.1 sen. With the recent retracement in share price, our TP now reflects a comfortable upside of 20.4%. Consequently, we are upgrading our rating to BUY (from Hold previously).

Analyst:
Sophie Chua Siu Li 
[%THgG%]

$KLSE-DKSH 
Research by Hong Leong Investment Bank
Buy (From Hold) – Target Price RM5.50

“Lifted by lower finance and tax expense”

DKSH’s 3QFY23 core net profit of RM27.3m (-6.4% QoQ, +21.7% YoY) brought 9MFY23’s total to RM97.5m (+14.8% YoY). The results beat both our and consensus projections, accounting for 83% and 88% of full-year forecasts. Key discrepancy to our forecast was due to lower-than-expected finance costs and tax expenses. We revise our FY23-25f forecasts upwards by less than 3%, primarily to incorporate a lower finance cost assumption. Post earnings revision, our TP is raised to RM5.50 (from RM5.43 previously). Our TP is derived based on a P/E multiple of 6.7x (at +1.5SD of DKSH’s 5-year average) on its FY24f EPS of 82.1 sen. With the recent retracement in share price, our TP now reflects a comfortable upside of 20.4%. Consequently, we are upgrading our rating to BUY (from Hold previously).

Analyst:
Sophie Chua Siu Li 
sophiecsl@hlib.hongleong.com.my

$DKSH / 5908 (DKSH HOLDINGS (MALAYSIA) BERHAD)