[%cWhT%]
Research by TA
Sell – TP RM1.35

“Lower YoY Net Profit but Within Expectations"

We maintain Elk-Desa’s TP at RM1.35/share. Our valuation is based on a 25% discount to Malaysia’s average NBFI (such as AEON Credit and RCE Capital) P/B ratio of 1.6x due to Elk-Desa’s smaller market cap and less superior ROEs. However, given that the risk-reward potential has narrowed due to the recent increase in the share price, we downgrade Elk-Desa to SELL from hold.

Analyst:
Li Hsia Wong  
[%eVeW%]

$KLSE-ELKDESA
Research by TA
Sell – TP RM1.35

“Lower YoY Net Profit but Within Expectations"

We maintain Elk-Desa’s TP at RM1.35/share. Our valuation is based on a 25% discount to Malaysia’s average NBFI (such as AEON Credit and RCE Capital) P/B ratio of 1.6x due to Elk-Desa’s smaller market cap and less superior ROEs. However, given that the risk-reward potential has narrowed due to the recent increase in the share price, we downgrade Elk-Desa to SELL from hold.

Analyst:
Li Hsia Wong  
liwong@ta.com.my

$ELKDESA / 5228 (ELK-DESA RESOURCES BERHAD)