[%tJCN%] 
Research by RHB
Sell (Maintained) - TP of MYR0.24

"Still Not Out Of The Woods"

Advancecon’s recent JV with Perak Corp (PRK MK, NR) to develop SilverValley Technology Park (SVTP) could lead to a new revenue stream. However, low construction progress billings and high material costs are still dragging its performance. With the continued underperformance, we believe its valuation is too lofty. The stock is trading at a 48x FY24F P/E, at >2SD from the 5-year historical mean – which justifies our SELL call.

Analyst(s):
Cindy Lee
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Adam Bin Mohamed Rahim
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$KLSE-ADVCON 
Research by RHB
Sell (Maintained) - TP of MYR0.24

"Still Not Out Of The Woods"

Advancecon’s recent JV with Perak Corp (PRK MK, NR) to develop SilverValley Technology Park (SVTP) could lead to a new revenue stream. However, low construction progress billings and high material costs are still dragging its performance. With the continued underperformance, we believe its valuation is too lofty. The stock is trading at a 48x FY24F P/E, at >2SD from the 5-year historical mean – which justifies our SELL call.

Analyst(s):
Cindy Lee
cindy.chin.hui@rhbgroup.com

Adam Bin Mohamed Rahim
adam.mohamed.rahim@rhbgroup.com

$ADVCON / 5281 (ADVANCECON HOLDINGS BERHAD)