PLASTIC PACKAGING
 [%QyXF%] [%LGRS%] 
Research by Kenanga
Overweight

“Restocking, Product Innovation Drive Sales”

We upgrade our sector call to OVERWEIGHT from NEUTRAL. Players have guided for stronger flow of orders over the immediate term, driven by customers restocking activities ahead of price hikes stemming from rising resin prices, and overwhelming response to their sustainable packaging materials. Also, local players have gained market share from their overseas peers, capitalising on lower energy cost and innovative products such as nano stretch film and mono film that tick the sustainability box. Our sector top picks are TGUAN (OP; TP: RM2.86) and BPPLAS (OP; TP: RM1.42).

Analyst(s):
Teh Kian Yeong 
[%oaCF%]

PLASTIC PACKAGING
 $KLSE-TGUAN $KLSE-BPPLAS 
Research by Kenanga
Overweight

“Restocking, Product Innovation Drive Sales”

We upgrade our sector call to OVERWEIGHT from NEUTRAL. Players have guided for stronger flow of orders over the immediate term, driven by customers restocking activities ahead of price hikes stemming from rising resin prices, and overwhelming response to their sustainable packaging materials. Also, local players have gained market share from their overseas peers, capitalising on lower energy cost and innovative products such as nano stretch film and mono film that tick the sustainability box. Our sector top picks are TGUAN (OP; TP: RM2.86) and BPPLAS (OP; TP: RM1.42).

Analyst(s):
Teh Kian Yeong 
tehky@kenanga.com.my

$TGUAN / 7034 (THONG GUAN INDUSTRIES BERHAD)