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Research by HLIB
Sell (Maintain) – TP RM0.83

“Rebound in export sales"

SLP reported 1Q24 core PAT of RM4.9m (+156.4% QoQ, +63.1% YoY), which came in above our expectation but within the consensus forecast. This positive deviation was primarily driven by a stronger-than-anticipated rebound in its manufacturing segment, resulting in improved margins and a str onger bottom line. We raise our FY24F and FY25F earnings by 12% and 11% respectively, following the upward adjustments to our utilization rate assumptions. Post earnings adjustment, we still maintain SELL call but with a higher TP of RM0.83 based on a 14.5x P/E on FY24f EPS of 5.1sen. Notably, SLP is trading at 19x FY24F P/E, a valuation we consider to be at a premium.

Analyst:
Sam Jun Kit
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$KLSE-SLP
Research by HLIB
Sell (Maintain) – TP RM0.83

“Rebound in export sales"

SLP reported 1Q24 core PAT of RM4.9m (+156.4% QoQ, +63.1% YoY), which came in above our expectation but within the consensus forecast. This positive deviation was primarily driven by a stronger-than-anticipated rebound in its manufacturing segment, resulting in improved margins and a str onger bottom line. We raise our FY24F and FY25F earnings by 12% and 11% respectively, following the upward adjustments to our utilization rate assumptions. Post earnings adjustment, we still maintain SELL call but with a higher TP of RM0.83 based on a 14.5x P/E on FY24f EPS of 5.1sen. Notably, SLP is trading at 19x FY24F P/E, a valuation we consider to be at a premium.

Analyst:
Sam Jun Kit
jksam@hlib.hongleong.com.my