[%VniS%] 
Research by RHB
Buy – TP of MYR 1.31

“Demand Recovery To Propel Earnings Upcycle; U/G” 

Upgrade to BUY from Neutral, with higher MYR1.31 TP (from MYR0.78), 20% upside, c.4% FY25F (Mar) yield. SKP Resources’ FY24 results outperformed expectations on higher-than-expected sales. Outlook is promising, considering the rebound in orders from its key customer, while its plan to diversify its earnings stream is progressing well. This prompted us to raise our valuation yardstick as we view SKP as a proxy to the global demand recovery and opportunities from the trade war diversion.

Analyst(s):
Soong Wei Siang
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$KLSE-SKPRES 
Research by RHB
Buy – TP of MYR 1.31

“Demand Recovery To Propel Earnings Upcycle; U/G” 

Upgrade to BUY from Neutral, with higher MYR1.31 TP (from MYR0.78), 20% upside, c.4% FY25F (Mar) yield. SKP Resources’ FY24 results outperformed expectations on higher-than-expected sales. Outlook is promising, considering the rebound in orders from its key customer, while its plan to diversify its earnings stream is progressing well. This prompted us to raise our valuation yardstick as we view SKP as a proxy to the global demand recovery and opportunities from the trade war diversion.

Analyst(s):
Soong Wei Siang
soong.wei.siang@rhbgroup.com