[%uWKr%] 
Research by Kenanga
Outperform – TP of MYR 1.10

“Earnings Driven by Margin Expansion” 

KAREX’s 9MFY24 results beat our forecast. Its 9MFY24 net profit almost tripled driven by strong margins on an improved product mix. Its outlook will be buoyed by the roll-out of high-margin synthetic products. We raise our FY24-25F net profit forecasts by 5% and 4%, respectively, lift our TP by 4% to RM1.10 (from RM1.06) and maintain our OUTPERFORM call.

Analyst(s):
Cheow Ming Liang 
[%WelZ%]

$KLSE-KAREX 
Research by Kenanga
Outperform – TP of MYR 1.10

“Earnings Driven by Margin Expansion” 

KAREX’s 9MFY24 results beat our forecast. Its 9MFY24 net profit almost tripled driven by strong margins on an improved product mix. Its outlook will be buoyed by the roll-out of high-margin synthetic products. We raise our FY24-25F net profit forecasts by 5% and 4%, respectively, lift our TP by 4% to RM1.10 (from RM1.06) and maintain our OUTPERFORM call.

Analyst(s):
Cheow Ming Liang 
cheowml@kenanga.com