[%cHNU%] 
Research by HLIB
Buy (Maintain) – Target Price RM5.50

“Staying resilient”

Despite marginally lower topline in 3Q23, DKSH’s core net profit still showed improvement on a YoY basis, thanks to the better product mix. In order to continue improving its yield, DKSH has continued to sign on new clients in both its Consumer Goods and Healthcare segment, to strategically diversify its cost base. Weak ringgit is also not a major concern, as bulk of its purchases are done in ringgit, and it also manages its foreign currency exposure via hedging. Forecasts are unchanged, TP maintained at RM5.50, derived using a P/E multiple of 6.7x (at +1.5SD of DKSH’s 5-year average) on its FY24f EPS of 82.1 sen. While weak consumer sentiment may lead to uncertain purchasing patterns, we believe DKSH is well-insulated from this as its distribution portfolio covers both premium products and the more affordable consumer staples, hence it stands to benefit even when down trading happens. Keep BUY.

Analyst:
Sophie Chua Siu Li 
[%haTu%]

$KLSE-DKSH 
Research by HLIB
Buy (Maintain) – Target Price RM5.50

“Staying resilient”

Despite marginally lower topline in 3Q23, DKSH’s core net profit still showed improvement on a YoY basis, thanks to the better product mix. In order to continue improving its yield, DKSH has continued to sign on new clients in both its Consumer Goods and Healthcare segment, to strategically diversify its cost base. Weak ringgit is also not a major concern, as bulk of its purchases are done in ringgit, and it also manages its foreign currency exposure via hedging. Forecasts are unchanged, TP maintained at RM5.50, derived using a P/E multiple of 6.7x (at +1.5SD of DKSH’s 5-year average) on its FY24f EPS of 82.1 sen. While weak consumer sentiment may lead to uncertain purchasing patterns, we believe DKSH is well-insulated from this as its distribution portfolio covers both premium products and the more affordable consumer staples, hence it stands to benefit even when down trading happens. Keep BUY.

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

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