[%Xenk%] 
Research by HLIB
Hold (Maintain) – TP of RM0.33

“Buoyed by net positive taxation”

Hevea’s 4Q23 core net profit of RM5.3m (QoQ: +6.1x; YoY: -12.2%) brought FY23’s sum to -RM1.7m (FY22: RM10.2m). The results came in above our full year net loss forecast of -RM5.0m. The results beat was largely due to positive net taxation. Despite the results beat, we continue to remain cautious in view of the weak consumer demand from Japan, as the country is Hevea’s largest export market. With Japan’s economy remaining uncertain, we think that Hevea’s earnings for the near-term will remain clouded. No change to forecast. Maintain HOLD with an unchanged TP of RM0.33 (0.45x FY24 P/B).

Analyst(s):
Tan Je Jyne 
[%Usgx%]

$KLSE-HEVEA 
Research by HLIB
Hold (Maintain) – TP of RM0.33

“Buoyed by net positive taxation”

Hevea’s 4Q23 core net profit of RM5.3m (QoQ: +6.1x; YoY: -12.2%) brought FY23’s sum to -RM1.7m (FY22: RM10.2m). The results came in above our full year net loss forecast of -RM5.0m. The results beat was largely due to positive net taxation. Despite the results beat, we continue to remain cautious in view of the weak consumer demand from Japan, as the country is Hevea’s largest export market. With Japan’s economy remaining uncertain, we think that Hevea’s earnings for the near-term will remain clouded. No change to forecast. Maintain HOLD with an unchanged TP of RM0.33 (0.45x FY24 P/B).

Analyst(s):
Tan Je Jyne 
jjtan@hlib.hongleong.com.my