[%uAYE%] 
Research by RHB
Buy – TP of MYR 0.78

“Low Utilisation Due To Production Hiatus; Stay BUY” 

JHM Consolidation’s 1Q24 core loss of MYR5.1m was a miss on slower-than-expected revenue and margin. The push-out of new projects launched by customers affected the overall utilisation rate and, coupled with higher input costs, contributed to the lacklustre results. We expect the automotive side to pick up in 2H alongside the industrial segment from the semiconductor sector’s recovery. The current distressed price level presents opportunities for longer-term investors to position for the recovery.

Analyst(s):
Lee Meng Horng
[%yjaN%]

$KLSE-JHM 
Research by RHB
Buy – TP of MYR 0.78

“Low Utilisation Due To Production Hiatus; Stay BUY” 

JHM Consolidation’s 1Q24 core loss of MYR5.1m was a miss on slower-than-expected revenue and margin. The push-out of new projects launched by customers affected the overall utilisation rate and, coupled with higher input costs, contributed to the lacklustre results. We expect the automotive side to pick up in 2H alongside the industrial segment from the semiconductor sector’s recovery. The current distressed price level presents opportunities for longer-term investors to position for the recovery.

Analyst(s):
Lee Meng Horng
lee.meng.horng@rhbgroup.com