[%dupl%] 
Research by HLIB
Buy (Maintain) – TP of RM6.14

“Delivering a stellar close”

DKSH’s 4QFY23 core net profit of RM39m (+29.7% QoQ, +4.0% YoY) brought FY23 full year sum to RM139.3 (+13.8% YoY). Its performance came in above both our (115%) and consensus (124%) estimates. Key discrepancy to our forecast was due to lower-than-expected tax expenses. The strong results achieved in FY23 was driven by improved contribution across all segments and better product mix that led to margin expansion. We raise FY24-25f forecasts by c.11% as we lower tax assumption. Maintain BUY with higher TP of RM6.14, derived based on a P/E multiple of 6.7x (at +1.5SD of DKSH’s 5-year average) on its FY24f EPS of 91.6 sen. We continue to like DKSH for its diverse product portfolio, encompassing both premium and affordable products, hence it stands to benefit even when down trading happens.

Analyst(s):
Sophie Chua Siu Li 
[%IRQJ%]

$KLSE-DKSH 
Research by HLIB
Buy (Maintain) – TP of RM6.14

“Delivering a stellar close”

DKSH’s 4QFY23 core net profit of RM39m (+29.7% QoQ, +4.0% YoY) brought FY23 full year sum to RM139.3 (+13.8% YoY). Its performance came in above both our (115%) and consensus (124%) estimates. Key discrepancy to our forecast was due to lower-than-expected tax expenses. The strong results achieved in FY23 was driven by improved contribution across all segments and better product mix that led to margin expansion. We raise FY24-25f forecasts by c.11% as we lower tax assumption. Maintain BUY with higher TP of RM6.14, derived based on a P/E multiple of 6.7x (at +1.5SD of DKSH’s 5-year average) on its FY24f EPS of 91.6 sen. We continue to like DKSH for its diverse product portfolio, encompassing both premium and affordable products, hence it stands to benefit even when down trading happens.

Analyst(s):
Sophie Chua Siu Li 
sophiecsl@hlib.hongleong.com.my

$DKSH / 5908 (DKSH HOLDINGS (MALAYSIA) BERHAD)