[%pPvl%] 
Research by HLIB
Buy – TP of MYR 0.42

“Stronger quarters ahead” 

Evergreen recorded 1Q24 core net profit of RM751k (4Q23: -RM19.9m; 1Q23: - RM20.6m). Despite only making up 7% of our full year forecast, we deem the results to be within our expectation as we expect sequential improvements in the subsequent quarters. After imputing FY23 annual report updates, our FY23/24 forecasts are tweaked by +1.0%/+0.5% respectively. We also introduce FY26 forecasts. The improvements over the coming quarters will primarily be on the back of (i) the increase in Indonesia’s MDF capacity by 2H24; (ii) sustained improvements in MDF ASP; and (iii) stronger orders for downstream products. Maintain BUY with an unchanged TP of RM0.42.

Analyst(s):
Tan Je Jyne
[%Dgvx%]

$KLSE-EVERGRN 
Research by HLIB
Buy – TP of MYR 0.42

“Stronger quarters ahead” 

Evergreen recorded 1Q24 core net profit of RM751k (4Q23: -RM19.9m; 1Q23: - RM20.6m). Despite only making up 7% of our full year forecast, we deem the results to be within our expectation as we expect sequential improvements in the subsequent quarters. After imputing FY23 annual report updates, our FY23/24 forecasts are tweaked by +1.0%/+0.5% respectively. We also introduce FY26 forecasts. The improvements over the coming quarters will primarily be on the back of (i) the increase in Indonesia’s MDF capacity by 2H24; (ii) sustained improvements in MDF ASP; and (iii) stronger orders for downstream products. Maintain BUY with an unchanged TP of RM0.42.

Analyst(s):
Tan Je Jyne
jjtan@hlib.hongleong.com.my

$EVERGRN / 5101 (EVERGREEN FIBREBOARD BERHAD)