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Research by RHB
Buy (Maintained) – TP of MYR1.44

“Recoveries In Industrial And Polymer Divisions; BUY”

Keep BUY, with new MYR1.44 TP from MYR1.50, 49% upside. Texchem Resources’ FY23 results missed expectations on slower-than-expected recovery. That said, following a lacklustre share price performance (-56%) in FY23 due to weak results and margins compression, TEX could be a laggard play into FY24 that is poised to benefit from volume recovery, particularly from industrial and polymer engineering divisions. The current depressed valuation offers a good entry into the diverse businesses, coupled with solid balance sheet and strong cash flow generation.

Analyst(s):
Tai Yu Jie 
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Lee Meng Horng 
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$KLSE-TEXCHEM 
Research by RHB
Buy (Maintained) – TP of MYR1.44

“Recoveries In Industrial And Polymer Divisions; BUY”

Keep BUY, with new MYR1.44 TP from MYR1.50, 49% upside. Texchem Resources’ FY23 results missed expectations on slower-than-expected recovery. That said, following a lacklustre share price performance (-56%) in FY23 due to weak results and margins compression, TEX could be a laggard play into FY24 that is poised to benefit from volume recovery, particularly from industrial and polymer engineering divisions. The current depressed valuation offers a good entry into the diverse businesses, coupled with solid balance sheet and strong cash flow generation.

Analyst(s):
Tai Yu Jie 
tai.yu.jie@rhbgroup.com 
Lee Meng Horng 
lee.meng.horng@rhbgroup.com

$TEXCHEM / 8702 (TEXCHEM RESOURCES BERHAD)