[%qZGO%] 
Research by HLIB
Buy – TP of MYR 0.48

“Brighter prospects ahead” 

Despite Evergreen’s revenue in 1Q24 dipping slightly QoQ due to a seasonally weaker quarter, revenue increased YoY thanks to higher sales volume and ASP from all segments. Consequently, 1Q24 GP margin improved both QoQ and YoY. Looking ahead, the group’s prospects are showing signs of further improvement on the back of: (i) the resilient Middle East market sustaining demand for panel boards; (ii) new export markets/customers from reducing its reliance on Red Sea transit as well as trade diversion from Western customers due to heightened scrutiny on Chinese imports; (iii) MDF capacity increase in Indonesia; and (iv) recovering US furniture demand. Maintain BUY with a higher TP of RM0.48 (from RM0.42) based on 0.4x FY25 BVPS of RM1.20.

Analyst(s):
Tan Je Jyne
[%hWmk%]

$KLSE-EVERGRN 
Research by HLIB
Buy – TP of MYR 0.48

“Brighter prospects ahead” 

Despite Evergreen’s revenue in 1Q24 dipping slightly QoQ due to a seasonally weaker quarter, revenue increased YoY thanks to higher sales volume and ASP from all segments. Consequently, 1Q24 GP margin improved both QoQ and YoY. Looking ahead, the group’s prospects are showing signs of further improvement on the back of: (i) the resilient Middle East market sustaining demand for panel boards; (ii) new export markets/customers from reducing its reliance on Red Sea transit as well as trade diversion from Western customers due to heightened scrutiny on Chinese imports; (iii) MDF capacity increase in Indonesia; and (iv) recovering US furniture demand. Maintain BUY with a higher TP of RM0.48 (from RM0.42) based on 0.4x FY25 BVPS of RM1.20.

Analyst(s):
Tan Je Jyne
JJTan@hlib.hongleong.com.my

$EVERGRN / 5101 (EVERGREEN FIBREBOARD BERHAD)