[%SzoI%]
Research by Maybank
Sell (Prior: Hold) – TP RM0.49

“1Q24: Largest quarterly loss in more than 3 years"

Icon stayed in the red yet again in 1Q24, missing expectations. We cut FY24-26E earnings estimates by -74%/-31%/-27% after reducing our: i) utilisation rate assumptions to 72%/75%/75% (from 76%); and ii) EBITDA margin assumption to 42% (from 43%) for all 3 forward years. With that, we D/G Icon to SELL with a lower TP of MYR0.49 (from MYR0.71), based on 12x FY25E PER (unchanged).

Analyst:
Jeremie Yap
[%pCNB%]

$KLSE-ICON
Research by Maybank
Sell (Prior: Hold) – TP RM0.49

“1Q24: Largest quarterly loss in more than 3 years"

Icon stayed in the red yet again in 1Q24, missing expectations. We cut FY24-26E earnings estimates by -74%/-31%/-27% after reducing our: i) utilisation rate assumptions to 72%/75%/75% (from 76%); and ii) EBITDA margin assumption to 42% (from 43%) for all 3 forward years. With that, we D/G Icon to SELL with a lower TP of MYR0.49 (from MYR0.71), based on 12x FY25E PER (unchanged).

Analyst:
Jeremie Yap
jeremie.yap@maybank-ib.com