[%sDlR%]
Research by Ambank
Buy (Maintained) – FV of RM0.80

“Flour to offset poor poultry earnings”

• We maintain BUY on Malayan Flour Mills (M Flour) with an unchanged fair value of RM0.80/share, based on FY25F PE of 8x, which is the 2-year average. We ascribe a neutral 3- star ESG rating to M Flour. 

• Although M Flour’s poultry earnings are expected to be poor in FY24F, this would be more than compensated by a recovery in flour profits. 

• Even so, we have reduced M Flour’s FY24F net profit by 5% to account for weaker contribution from the poultry joint venture. We forecast M Flour’s share of earnings in the unit to be a loss of RM12mil in FY24F vs. a positive RM25.9mil in FY23 due to a drop in poultry demand from quick service restaurants. 

Analyst(s):
Gan Huey Ling, CFA 
[%MJdx%]

$KLSE-MFLOUR
Research by Ambank
Buy (Maintained) – FV of RM0.80

“Flour to offset poor poultry earnings”

• We maintain BUY on Malayan Flour Mills (M Flour) with an unchanged fair value of RM0.80/share, based on FY25F PE of 8x, which is the 2-year average. We ascribe a neutral 3- star ESG rating to M Flour. 

• Although M Flour’s poultry earnings are expected to be poor in FY24F, this would be more than compensated by a recovery in flour profits. 

• Even so, we have reduced M Flour’s FY24F net profit by 5% to account for weaker contribution from the poultry joint venture. We forecast M Flour’s share of earnings in the unit to be a loss of RM12mil in FY24F vs. a positive RM25.9mil in FY23 due to a drop in poultry demand from quick service restaurants. 

Analyst(s):
Gan Huey Ling, CFA 
gan-huey-ling@ambankgroup.com

$MFLOUR / 3662 (MALAYAN FLOUR MILLS BERHAD)