[%aRYC%]
Research by Public
Outperform – TP RM2.40

“Recovery in Exports to North America"

Kawan Food’s (Kawan) 1QFY24 core net profit grew by 23.4% YoY to RM9.4m, primarily driven by stronger local sales due to festive spending and heightened demands from the export market. Results were in line with our and consensus expectations, accounting for 25% and 26% respectively. Nevertheless, we adjust our forecast lower by an average of 1.5% due to bookkeeping changes. We continue to like Kawan on growing demand for frozen food from both local and export markets, new product launches in addition to being supported by favourable forex rate. As the stock is currently trading at c.16x forward PE (see figure 1), valuation is deemed attractive as it is trading at -1SD of its 3-year average forward PE. We maintain our Outperform call, with a higher TP of RM2.40, as we roll over our valuation base year to 20x FY25F EPS.

Analyst:
Wong Ling Ling
[%qLpW%]

$KLSE-KAWAN
Research by Public
Outperform – TP RM2.40

“Recovery in Exports to North America"

Kawan Food’s (Kawan) 1QFY24 core net profit grew by 23.4% YoY to RM9.4m, primarily driven by stronger local sales due to festive spending and heightened demands from the export market. Results were in line with our and consensus expectations, accounting for 25% and 26% respectively. Nevertheless, we adjust our forecast lower by an average of 1.5% due to bookkeeping changes. We continue to like Kawan on growing demand for frozen food from both local and export markets, new product launches in addition to being supported by favourable forex rate. As the stock is currently trading at c.16x forward PE (see figure 1), valuation is deemed attractive as it is trading at -1SD of its 3-year average forward PE. We maintain our Outperform call, with a higher TP of RM2.40, as we roll over our valuation base year to 20x FY25F EPS.

Analyst:
Wong Ling Ling
wong.lingling@publicinvestbank.com.my