[%gZJC%]
Research by Kenanga
Underperform – TP RM1.40

“A Leap of Faith Over Flagship Products”

PWROOT will prioritise margin over volume over the immediate term. It is raising prices, narrowing the discount of its products to competitors’. We believe this could lead to a loss in sales volumes. It is optimising its advertising and promotion (A&P) spending, focusing on high-margin flagship products. We maintain our forecasts, TP of RM1.40, and an UNDERPERFORM call.

Analyst:
Cheow Ming Liang 
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$KLSE-PWROOT
Research by Kenanga
Underperform – TP RM1.40

“A Leap of Faith Over Flagship Products”

PWROOT will prioritise margin over volume over the immediate term. It is raising prices, narrowing the discount of its products to competitors’. We believe this could lead to a loss in sales volumes. It is optimising its advertising and promotion (A&P) spending, focusing on high-margin flagship products. We maintain our forecasts, TP of RM1.40, and an UNDERPERFORM call.

Analyst:
Cheow Ming Liang 
cheowml@kenanga.com.my