[%wNSM%]
Research by Kenanga
Market Perform - TP RM7.04

"New Capabilities Could Do Better"

KESM’s 9MFY24 results disappointed due to a weak pick-up in the demand for its burn-in and test services. Nonetheless, it turned around in 9MFY24 from a loss last year driven by improved sales after it upgraded its capabilities. We remain concerned over its quarterly earnings volatility. We cut our FY24-25F earnings forecasts by 35% and 21%, respectively, tweak our TP down to RM7.04 (from RM7.06) but maintain our MARKET PERFORM call.

Analyst:
Samuel Tan 
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$KLSE-KESM
Research by Kenanga
Market Perform - TP RM7.04

"New Capabilities Could Do Better"

KESM’s 9MFY24 results disappointed due to a weak pick-up in the demand for its burn-in and test services. Nonetheless, it turned around in 9MFY24 from a loss last year driven by improved sales after it upgraded its capabilities. We remain concerned over its quarterly earnings volatility. We cut our FY24-25F earnings forecasts by 35% and 21%, respectively, tweak our TP down to RM7.04 (from RM7.06) but maintain our MARKET PERFORM call.

Analyst:
Samuel Tan 
samueltan@kenanga.com.my