[%mJaO%]
Research by Public
Neutral – TP RM0.61

“Improving Sales Orders"

Homeritz’s 3QFY24 headline net profit increased by 46.4% YoY to RM9.1m, primarily attributed to higher sales volume across all regions. After adjusting for non-core items, Homeritz’s core net profit came in at RM8.7m (+66.5% YoY). Results were above both our and consensus estimates at 86% and 94% respectively, due to the higher-than-expected sales volume driven by new customers from Asia and America on new product development. We anticipate an increase in sales volume in 4QFY24 due to seasonality, as customers typically purchase more for year-end festivals. Consequently, we revise our FY24F earnings forecast upward by 6% while maintaining our earnings projections for FY25F-26F. All told, we reiterate our Neutral rating on Homeritz, with a higher target price of RM0.61 based on a 9x PE multiple.

Analyst:
Thye May Ting
[%KiPa%]

$KLSE-HOMERIZ
Research by Public
Neutral – TP RM0.61

“Improving Sales Orders"

Homeritz’s 3QFY24 headline net profit increased by 46.4% YoY to RM9.1m, primarily attributed to higher sales volume across all regions. After adjusting for non-core items, Homeritz’s core net profit came in at RM8.7m (+66.5% YoY). Results were above both our and consensus estimates at 86% and 94% respectively, due to the higher-than-expected sales volume driven by new customers from Asia and America on new product development. We anticipate an increase in sales volume in 4QFY24 due to seasonality, as customers typically purchase more for year-end festivals. Consequently, we revise our FY24F earnings forecast upward by 6% while maintaining our earnings projections for FY25F-26F. All told, we reiterate our Neutral rating on Homeritz, with a higher target price of RM0.61 based on a 9x PE multiple.

Analyst:
Thye May Ting
thye.mayting@publicinvestbank.com.my

$HOMERIZ / 5160 (HOMERITZ CORPORATION BERHAD)