[%GFeY%] 
Research by RHB
Buy (Maintained) - TP RM1.44

"Signs Of Earnings Rebound; Keep BUY"

Maintain BUY and MYR1.44 TP, 62% upside, c.3% yield. Although Texchem Resources’ 1Q24 results missed expectations, we see the rebound in the industrial and polymer engineering divisions as a positive sign. Earnings are expected to improve across all business units on further volume recovery and seasonal factors. Its current low valuation presents an attractive entry point into the diverse businesses, supported by a solid balance sheet and strong cash flow generation.

Analysts:
Tai Yu Jie
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Lee Meng Horng
[%yOqz%]

$KLSE-TEXCHEM 
Research by RHB
Buy (Maintained) - TP RM1.44

"Signs Of Earnings Rebound; Keep BUY"

Maintain BUY and MYR1.44 TP, 62% upside, c.3% yield. Although Texchem Resources’ 1Q24 results missed expectations, we see the rebound in the industrial and polymer engineering divisions as a positive sign. Earnings are expected to improve across all business units on further volume recovery and seasonal factors. Its current low valuation presents an attractive entry point into the diverse businesses, supported by a solid balance sheet and strong cash flow generation.

Analysts:
Tai Yu Jie
tai.yu.jie@rhbgroup.com
Lee Meng Horng
lee.meng.horng@rhbgroup.com

$TEXCHEM / 8702 (TEXCHEM RESOURCES BERHAD)