[%jRow%] 
Research by PIB
Underperform – TP of MYR 0.95

“Outlook Aggravated by Freight Rate Surge” 

A recent meeting with management reaffirms our cautious stance on Chin Well, as the Group’s near-term outlook may continue to be challenged by weak demand recovery and elevated operating cost. Surge in freight rates as a result of disruptions in major trade lanes will hamper an already-fragile demand recovery for the Group. Nonetheless, Chin Well is well-placed to weather economic uncertainties, underpinned by its debt free capital structure with a total cash level of RM116m and management’s prudent budget control. We keep our earnings forecast unchanged. We retain our Underperform call on Chin Well with an unchanged PE-based target price of RM0.95.

Analyst(s):
Denny Oh
[%qOHN%]

$KLSE-CHINWEL 
Research by PIB
Underperform – TP of MYR 0.95

“Outlook Aggravated by Freight Rate Surge” 

A recent meeting with management reaffirms our cautious stance on Chin Well, as the Group’s near-term outlook may continue to be challenged by weak demand recovery and elevated operating cost. Surge in freight rates as a result of disruptions in major trade lanes will hamper an already-fragile demand recovery for the Group. Nonetheless, Chin Well is well-placed to weather economic uncertainties, underpinned by its debt free capital structure with a total cash level of RM116m and management’s prudent budget control. We keep our earnings forecast unchanged. We retain our Underperform call on Chin Well with an unchanged PE-based target price of RM0.95.

Analyst(s):
Denny Oh
research@publicinvestbank.com.my

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)