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Research by RHB
Sell (Maintained) – TP RM1.05

“Strong Growth, But Challenges Remain; SELL"

Keep SELL and MYR1.05 TP, 21% downside. ELK-Desa Resources’ FY24 results met expectations, barring a higher-than-expected effective tax rate. The hire purchase (HP) segment continues to record strong growth despite still-elevated credit costs, while the furniture segment remains beleaguered by a margin squeeze and stiff competition. Maintain SELL, on valuation grounds.

Analysts:
Nabil Thoo
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David Chong, CFA
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$KLSE-ELKDESA
Research by RHB
Sell (Maintained) – TP RM1.05

“Strong Growth, But Challenges Remain; SELL"

Keep SELL and MYR1.05 TP, 21% downside. ELK-Desa Resources’ FY24 results met expectations, barring a higher-than-expected effective tax rate. The hire purchase (HP) segment continues to record strong growth despite still-elevated credit costs, while the furniture segment remains beleaguered by a margin squeeze and stiff competition. Maintain SELL, on valuation grounds.

Analysts:
Nabil Thoo
nabil.thoo@rhbgroup.com
David Chong, CFA
david.chongvc@rhbgroup.com

$ELKDESA / 5228 (ELK-DESA RESOURCES BERHAD)