[%Hjxl%] 
Research by CGS CIMB
Hold (Previously: Add) – Target Price RM0.38

“Moving from costs issues to price pressures”

■ Stiff competition from foreign players for kitchen towel and toilet roll products to lead to core loss in FY4/24F before rebounding in FY25F/FY65F. 
■ Despite cost stabilisation playing out as expected, our thesis of margin recovery is hampered by lower selling prices of toilet rolls and kitchen towels. 
■ Downgrade to Hold, with a lower GGM-based TP of RM0.37. This note marks the transfer of coverage to Lew Cheng Wei.

Analysts:
LEW Cheng Wei 
[%ooTS%] 

Prem JEARAJASINGAM 
[%QGAk%]

$KLSE-NTPM 
Research by CGS CIMB
Hold (Previously: Add) – Target Price RM0.38

“Moving from costs issues to price pressures”

■ Stiff competition from foreign players for kitchen towel and toilet roll products to lead to core loss in FY4/24F before rebounding in FY25F/FY65F. 
■ Despite cost stabilisation playing out as expected, our thesis of margin recovery is hampered by lower selling prices of toilet rolls and kitchen towels. 
■ Downgrade to Hold, with a lower GGM-based TP of RM0.37. This note marks the transfer of coverage to Lew Cheng Wei.

Analysts:
LEW Cheng Wei 
chengwei.lew@cgs-cimb.com 

Prem JEARAJASINGAM 
prem.jearajasingam@cgs-cimb.com