CONSUMER
[%Kiyo%] [%AKvd%] [%kHhQ%] 
Research by HLIB
Overweight 

“Government booster to support consumption”

All in all, we turn more positive on consumer sector on the back of (i) possible margin expansion from moderation in raw material prices; (ii) consumption boosters with the EPF Account 3 and civil servants pay hike; (iii) encouraging macro environment with stable employment levels and uptick in retail spending. With this, we upgrade our sector call from Neutral to OVERWEIGHT. Our top picks are Aeon (BUY, TP RM1.82), FocusP (BUY, TP RM1.14), and QL Resources (BUY, TP RM8.18) given their attractive valuations with earnings backed by their expansion plans and brand equities.

Analyst(s):
Syifaa’ Mahsuri Ismail
[%avym%]

CONSUMER
$KLSE-AEON $KLSE-FOCUSP $KLSE-QL 
Research by HLIB
Overweight 

“Government booster to support consumption”

All in all, we turn more positive on consumer sector on the back of (i) possible margin expansion from moderation in raw material prices; (ii) consumption boosters with the EPF Account 3 and civil servants pay hike; (iii) encouraging macro environment with stable employment levels and uptick in retail spending. With this, we upgrade our sector call from Neutral to OVERWEIGHT. Our top picks are Aeon (BUY, TP RM1.82), FocusP (BUY, TP RM1.14), and QL Resources (BUY, TP RM8.18) given their attractive valuations with earnings backed by their expansion plans and brand equities.

Analyst(s):
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my

$FOCUSP / 0157 (FOCUS POINT HOLDINGS BERHAD)