$DKSH / 5908 (DKSH HOLDINGS (MALAYSIA) BERHAD)
Research by PB
Neutral - TP of RM5.15

"Lifted by Healthcare Segment"

DKSH’s 4QFY23 net profit increased by 15.4% YoY to RM32.3m, driven by better contribution from the Healthcare segment. Full-year FY23 net profit of RM110.5m were above our but in-line with consensus estimates, accounting for 107% and 98% respectively. The discrepancy in our forecast was mainly due to the stronger-than-expected sales from both Consumer Goods and Healthcare segments. That said, we raise our earnings forecasts for FY24-25F by an average of 8%. Going forward, we remain cautious on DKSH’s near-term outlook, on weaker consumer confidence due to the rising cost of living expenditure. However, we foresee better profit margins as the group focuses on improving operational efficiency to mitigate the impact of softer consumer spending. Post earnings adjustment, our TP is raised to RM5.15, based on 7x FY24F EPS. Our Neutral call on DKSH is maintained.

Analyst(s):
Wong Ling Ling
wong.lingling@publicinvestbank.com.my