[%MKnG%] 
Research by RHB
SELL - TP of RM0.84

"A Disappointing FY23; D/G To SELL"

Downgrade to SELL, with a new MYR0.84 TP from MYR1.04, 16% downside and c.4% yield. UEM Edgenta’s 4Q23 earnings were disappointing, with a 83% YoY decline in core earnings to bring its 2023 numbers to 57%/61% of ours and Street’s expectations. PBT margins across each business segment were lower owing to the impact of cost inflation. We downgrade the stock, as it is currently trading at 0.3SD above its 5-year historical mean, on the back of a lack of near-term re-rating catalysts and cost pressure.

Analyst(s):
Oong Chun Sung 
[%FPUj%]

$KLSE-EDGENTA 
Research by RHB
SELL - TP of RM0.84

"A Disappointing FY23; D/G To SELL"

Downgrade to SELL, with a new MYR0.84 TP from MYR1.04, 16% downside and c.4% yield. UEM Edgenta’s 4Q23 earnings were disappointing, with a 83% YoY decline in core earnings to bring its 2023 numbers to 57%/61% of ours and Street’s expectations. PBT margins across each business segment were lower owing to the impact of cost inflation. We downgrade the stock, as it is currently trading at 0.3SD above its 5-year historical mean, on the back of a lack of near-term re-rating catalysts and cost pressure.

Analyst(s):
Oong Chun Sung 
chun.sung@rhbgroup.com