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Research by Public
Neutral – TP RM1.62

“Headwinds Remain"

A recent meeting with management reaffirms our cautious optimism stance on BP Plastics Holding Berhad (BPPLAS). While near-term outlook may continue to be challenged by elevated production cost, the Group is showing signs of recovery as demand for the packaging products gradually picking up, underpinned by restocking activities. We also take note that the Group is well-placed to weather economic uncertainties given its debt free capital structure with a total cash level of RM67m. This enables it to capitalise on the next demand up-cycle with the production capacity expansion completed recently in 4Q23. We keep our earnings forecast unchanged. Our Neutral call on BP Plastic retained with an unchanged PE-based target price of RM1.62.

Analyst:
Denny Oh
[%NyJu%]

$KLSE-BPPLAS
Research by Public
Neutral – TP RM1.62

“Headwinds Remain"

A recent meeting with management reaffirms our cautious optimism stance on BP Plastics Holding Berhad (BPPLAS). While near-term outlook may continue to be challenged by elevated production cost, the Group is showing signs of recovery as demand for the packaging products gradually picking up, underpinned by restocking activities. We also take note that the Group is well-placed to weather economic uncertainties given its debt free capital structure with a total cash level of RM67m. This enables it to capitalise on the next demand up-cycle with the production capacity expansion completed recently in 4Q23. We keep our earnings forecast unchanged. Our Neutral call on BP Plastic retained with an unchanged PE-based target price of RM1.62.

Analyst:
Denny Oh
research@publicinvestbank.com.my