[%cVAD%] 
Research by HLIB
Buy (from Hold) – TP of MYR0.42

“Brighter outlook for FY24”

Despite results coming in below expectations in 4Q23, Evergreen’s subsequent quarters are expected to improve as its Indonesia MDF line is expected to see its capacity increase post completion of the relocation from Malaysia. The increased production output should be well absorbed by both the local market and by exporting to the Middle East. RTA sales to the US and EU is also expected to recover in 2H24 should the Fed begin to cut rates, auguring well for home sales and thus furniture demand. Moreover, Evergreen has also begun to diversify into Japan by increasing its RTA sales to the country, with management also looking at exporting panel boards to the Japanese market in the future. We raise our FY24/25 forecasts by 25.0%/21.1% respectively after imputing higher contribution from its Indonesia segment. Upgrade to BUY with a higher TP of RM0.42.

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

$KLSE-EVERGRN 
Research by HLIB
Buy (from Hold) – TP of MYR0.42

“Brighter outlook for FY24”

Despite results coming in below expectations in 4Q23, Evergreen’s subsequent quarters are expected to improve as its Indonesia MDF line is expected to see its capacity increase post completion of the relocation from Malaysia. The increased production output should be well absorbed by both the local market and by exporting to the Middle East. RTA sales to the US and EU is also expected to recover in 2H24 should the Fed begin to cut rates, auguring well for home sales and thus furniture demand. Moreover, Evergreen has also begun to diversify into Japan by increasing its RTA sales to the country, with management also looking at exporting panel boards to the Japanese market in the future. We raise our FY24/25 forecasts by 25.0%/21.1% respectively after imputing higher contribution from its Indonesia segment. Upgrade to BUY with a higher TP of RM0.42.

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

$EVERGRN / 5101 (EVERGREEN FIBREBOARD BERHAD)