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Research by HLIB
Buy – TP RM2.37

“An emerging force in private credit market"

We remain positive on the group’s prospects, particularly due to the strong growth in capital financing, which recorded a PBT of RM26.1m in 1Q24, up 13.6% QoQ and 41.8% YoY. Growth prospects for the segment remain strong anchored by Australia and civil servant segment. The property segment expects RM1.75bn in launches for FY24, which is a record high in recent years. The cables segment is poised for growth in 2H24 due to anticipated increased demand from data centres and utility companies. Maintain BUY with a higher TP of RM2.37 (from RM2.21) based on 25% discount to SOP-derived value of RM3.16, reflecting the growing prominence of its business segments.

Analyst:
Tan Kai Shuen, CFA
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$KLSE-OSK
Research by HLIB
Buy – TP RM2.37

“An emerging force in private credit market"

We remain positive on the group’s prospects, particularly due to the strong growth in capital financing, which recorded a PBT of RM26.1m in 1Q24, up 13.6% QoQ and 41.8% YoY. Growth prospects for the segment remain strong anchored by Australia and civil servant segment. The property segment expects RM1.75bn in launches for FY24, which is a record high in recent years. The cables segment is poised for growth in 2H24 due to anticipated increased demand from data centres and utility companies. Maintain BUY with a higher TP of RM2.37 (from RM2.21) based on 25% discount to SOP-derived value of RM3.16, reflecting the growing prominence of its business segments.

Analyst:
Tan Kai Shuen, CFA
kstan@hlib.hongleong.com.my