[%ixJM%]
Research by HLIB
Hold (Maintain) – Target Price RM0.58

“Picked up by higher sales"

Homeritz’ 2QFY24 core PATAMI of RM8.0m (QoQ: -2.0%; YoY: +50.4%) brought 1HFY24’s sum to RM16.1m (YoY: +42.6%). This came in above ours and consensus expectations at 55% and 59% respectively. The positive deviation was mainly due to higher-than-expected sales volume. We increase our FY24/25/26 forecasts by 13.4%/17.0%/17.9% to account fo higher sales assumptions. Homeritz saw improving sales volumes for 1H24, but we maintain a cautious view on its near-term earnings due to potentially sticky inflation negatively impacting near-term furniture demand. Nonetheless, the stronger USD should cushion any decline in sales volume. Maintain HOLD with a higher TP of RM0.58 pegged to 8x FY24 core EPS of 7.2 sen.

Analyst:
Tan Je Jyne
[%wPnC%]

$KLSE-HOMERIZ
Research by HLIB
Hold (Maintain) – Target Price RM0.58

“Picked up by higher sales"

Homeritz’ 2QFY24 core PATAMI of RM8.0m (QoQ: -2.0%; YoY: +50.4%) brought 1HFY24’s sum to RM16.1m (YoY: +42.6%). This came in above ours and consensus expectations at 55% and 59% respectively. The positive deviation was mainly due to higher-than-expected sales volume. We increase our FY24/25/26 forecasts by 13.4%/17.0%/17.9% to account fo higher sales assumptions. Homeritz saw improving sales volumes for 1H24, but we maintain a cautious view on its near-term earnings due to potentially sticky inflation negatively impacting near-term furniture demand. Nonetheless, the stronger USD should cushion any decline in sales volume. Maintain HOLD with a higher TP of RM0.58 pegged to 8x FY24 core EPS of 7.2 sen.

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

$HOMERIZ / 5160 (HOMERITZ CORPORATION BERHAD)