[%fzAX%] 
Research by CGS
Reduce – TP of MYR 3.70 

“Lacks near-term growth catalysts” 

We downgrade Kotra from Hold to Reduce, with a lower GGM-based TP of RM3.70 (COE: 9.4%; TG: 3%; from RM5.19), as we believe that there are no visible catalysts in the near term to lift Kotra’s earnings. At 14.9x CY24F P/E, Kotra is currently trading at 1 s.d. above its mean P/E of 11.6x since CY16 (earnings turned positive since CY16) in light of our declining earnings expectations. In the healthcare ex-hospitals space, we prefer Optimax (ADD, TP: RM0.84, CP: RM0.69) for its FY23-25F net profit CAGR of 12.7%, supported by yields of 2-3%.

Analyst(s):
LEW Cheng Wei
[%ejhC%]
Dharmini THURAISINGAM
[%RgNQ%]

$KLSE-KOTRA 
Research by CGS
Reduce – TP of MYR 3.70 

“Lacks near-term growth catalysts” 

We downgrade Kotra from Hold to Reduce, with a lower GGM-based TP of RM3.70 (COE: 9.4%; TG: 3%; from RM5.19), as we believe that there are no visible catalysts in the near term to lift Kotra’s earnings. At 14.9x CY24F P/E, Kotra is currently trading at 1 s.d. above its mean P/E of 11.6x since CY16 (earnings turned positive since CY16) in light of our declining earnings expectations. In the healthcare ex-hospitals space, we prefer Optimax (ADD, TP: RM0.84, CP: RM0.69) for its FY23-25F net profit CAGR of 12.7%, supported by yields of 2-3%.

Analyst(s):
LEW Cheng Wei
chengwei.lew@cgsi.com
Dharmini THURAISINGAM
dharmini@cgsi.com