[%QipO%] 
Research by PIB
Neutral – TP of MYR 1.62

“Dragged by Higher Production Cost” 

BP Plastics HoldingBerhad (BPPLAS) reported an 8.1% YoY decrease in net profit to RM7.6m (-22.3% QoQ) for 1QFY24 despite recording higher revenue, attributed to higher production costs. Results were below our and consensus expectations, accounting for only 18.4% and 19.3% of full-year estimates, respectively. We trim our earnings estimate for FY24/25 by 10% to account for higher cost of production. Despite that, our PE-based TP revised higher to RM1.62 (previously RM1.46) as we rollover our valuation to FY25F. Our Neutral call retained. On a side note, BPPLAS declared a first dividend of 1.5sen (1QFY23: 1.5sen).

Analyst(s):
Denny Oh
 [%KsXm%]

$KLSE-BPPLAS 
Research by PIB
Neutral – TP of MYR 1.62

“Dragged by Higher Production Cost” 

BP Plastics HoldingBerhad (BPPLAS) reported an 8.1% YoY decrease in net profit to RM7.6m (-22.3% QoQ) for 1QFY24 despite recording higher revenue, attributed to higher production costs. Results were below our and consensus expectations, accounting for only 18.4% and 19.3% of full-year estimates, respectively. We trim our earnings estimate for FY24/25 by 10% to account for higher cost of production. Despite that, our PE-based TP revised higher to RM1.62 (previously RM1.46) as we rollover our valuation to FY25F. Our Neutral call retained. On a side note, BPPLAS declared a first dividend of 1.5sen (1QFY23: 1.5sen).

Analyst(s):
Denny Oh
 research@publicinvestbank.com.my