[%nZHT%]
Research by Malacca
Hold – TP RM3.41

“Started FY24 Within Expectation"

Upgrade to HOLD, with higher TP of RM3.40. We upgrade to HOLD (from Sell) and revised the TP higher to RM3.40 (from RM1.82). Our TP is based on an assigned P/E of 15.0x (revised from 8.0x) pegged to its FY24f EPS of 22.7 sen. The 15x P/E is justified at a 30% discount to its 5Y average P/E 21.3x as we are in a commodity upcycle phase with rising investments in the EV, Solar and E&E and the recent China recovery. The ongoing supply constraints of tin ore in Indonesia and Myanmar and the highly correlated MSC price with tin price despite earnings volatility may drive the P/E elevated going forward.

Analyst:
Loui Low
[%Ymil%]

$KLSE-MSC
Research by Malacca
Hold – TP RM3.41

“Started FY24 Within Expectation"

Upgrade to HOLD, with higher TP of RM3.40. We upgrade to HOLD (from Sell) and revised the TP higher to RM3.40 (from RM1.82). Our TP is based on an assigned P/E of 15.0x (revised from 8.0x) pegged to its FY24f EPS of 22.7 sen. The 15x P/E is justified at a 30% discount to its 5Y average P/E 21.3x as we are in a commodity upcycle phase with rising investments in the EV, Solar and E&E and the recent China recovery. The ongoing supply constraints of tin ore in Indonesia and Myanmar and the highly correlated MSC price with tin price despite earnings volatility may drive the P/E elevated going forward.

Analyst:
Loui Low
louilow@msec.com.my

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD)