[%TjYg%]
Research by Kenanga
Market Perform – TP RM1.42

“Cost Pressures Weigh"

BPPLAS’s 1QFY24 results disappointed. Its 1QFY24 core net profit was flattish YoY as a 6% top-line growth was negated by highe  cost. It is focusing on high-margin products and broadening its products range to counter the rising cost pressure. We cut our FY24-25F earnings forecasts by 15% and 14%, respectively, but maintain our TP of RM1.42. Downgrade to MARKET PERFORM from OUTPERFORM after the recent run-up in its share price.

Analyst:
Teh Kian Yeong 
[%dLKG%]

$KLSE-BPPLAS
Research by Kenanga
Market Perform – TP RM1.42

“Cost Pressures Weigh"

BPPLAS’s 1QFY24 results disappointed. Its 1QFY24 core net profit was flattish YoY as a 6% top-line growth was negated by highe  cost. It is focusing on high-margin products and broadening its products range to counter the rising cost pressure. We cut our FY24-25F earnings forecasts by 15% and 14%, respectively, but maintain our TP of RM1.42. Downgrade to MARKET PERFORM from OUTPERFORM after the recent run-up in its share price.

Analyst:
Teh Kian Yeong 
tehky@kenanga.com.my