[%acUr%] 
Research by RHB
Sell (Maintained) – TP of MYR0.94

“Soft Demand To Persist; SELL”

Maintain SELL with lower MYR0.94 TP from MYR1.03, 23% downside. Chin Well’s 1HFY24 (Jun) results were below expectations due to prolonged demand weakness and loss of economies of scale. We foresee further downside risks to sales recovery considering the cautious outlook amidst macroeconomic headwinds in its key market. Current valuation (+2SD) appears lofty, and we believe the share price has yet to fully reflect the weaknesses and challenges ahead.

Analyst(s):
Tai Yu Jie 
[%QoGB%]

$KLSE-CHINWEL 
Research by RHB
Sell (Maintained) – TP of MYR0.94

“Soft Demand To Persist; SELL”

Maintain SELL with lower MYR0.94 TP from MYR1.03, 23% downside. Chin Well’s 1HFY24 (Jun) results were below expectations due to prolonged demand weakness and loss of economies of scale. We foresee further downside risks to sales recovery considering the cautious outlook amidst macroeconomic headwinds in its key market. Current valuation (+2SD) appears lofty, and we believe the share price has yet to fully reflect the weaknesses and challenges ahead.

Analyst(s):
Tai Yu Jie 
tai.yu.jie@rhbgroup.com

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)