[%JolM%]
Research by HLIB
Hold (Maintain) – Target Price RM0.36

“Results in line”

Evergreen’s 3Q23 core net profit of RM4.2m (QoQ: +46.5%; YoY: -72.0%) brought 9M23’s sum to -RM13.5m (9M22: RM47.9m), which was within our expectation. As interest rates remain elevated, housing affordability remains low and has continued to contribute to soft furniture demand from the NA and EU regions. This has resulted in the group’s Malaysian segment remaining weak and may persist to 4Q23. Nonetheless, management has guided that demand from the Middle East and Indonesia remains steady, with no disruptions in Middle East demand from the Israel-Hamas war. Maintain HOLD with an unchanged TP of RM0.36 pegged to 0.3x P/B based on FY24 BVPS of RM1.20.

Analyst:
Tan Je Jyne 
[%kZEO%]

$KLSE-EVERGRN
Research by HLIB
Hold (Maintain) – Target Price RM0.36

“Results in line”

Evergreen’s 3Q23 core net profit of RM4.2m (QoQ: +46.5%; YoY: -72.0%) brought 9M23’s sum to -RM13.5m (9M22: RM47.9m), which was within our expectation. As interest rates remain elevated, housing affordability remains low and has continued to contribute to soft furniture demand from the NA and EU regions. This has resulted in the group’s Malaysian segment remaining weak and may persist to 4Q23. Nonetheless, management has guided that demand from the Middle East and Indonesia remains steady, with no disruptions in Middle East demand from the Israel-Hamas war. Maintain HOLD with an unchanged TP of RM0.36 pegged to 0.3x P/B based on FY24 BVPS of RM1.20.

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

$EVERGRN / 5101 (EVERGREEN FIBREBOARD BERHAD)