[%UZNN%] 
Research by CGS CIMB
Hold (No Change) – Target Price RM5.19

“Long-term ROEs to normalise post Covid-19”

■ In our view, weak demand for OTC supplements post-Covid-19 could lead to Kotra’s core profit declining in FY6/24F before rebounding in FY25F/FY26F. 
■ After declining in FY22-23F, we expect long-term ROE to hold steady at c.18% in FY25F-26F due to better economies of scale. 
■ Reiterate Hold, with a lower GGM-based (previously P/E-based) TP of RM5.19. This note marks the transfer of coverage to Lew Cheng Wei.

Analysts:
LEW Cheng Wei 
[%HKka%] 

Dharmini THURAISINGAM 
[%EnPf%]

$KLSE-KOTRA 
Research by CGS CIMB
Hold (No Change) – Target Price RM5.19

“Long-term ROEs to normalise post Covid-19”

■ In our view, weak demand for OTC supplements post-Covid-19 could lead to Kotra’s core profit declining in FY6/24F before rebounding in FY25F/FY26F. 
■ After declining in FY22-23F, we expect long-term ROE to hold steady at c.18% in FY25F-26F due to better economies of scale. 
■ Reiterate Hold, with a lower GGM-based (previously P/E-based) TP of RM5.19. This note marks the transfer of coverage to Lew Cheng Wei.

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

Dharmini THURAISINGAM 
dharmini@cgs-cimb.com