[%KwJI%]
Research by HLIB
Sell – TP RM2.04

“Subdued margins"

As 2Q24 revenue undershot its own guidance, 1H24 core PAT of RM27m (-16% YoY) was below expectations. 2Q24 DPS of 2.0 sen will go ex on 19 Sep. Simpang Pulai plant operation remained subpar while in Gopeng, assembly/test pilot line equipment set up is ongoing and has started internal qualification. Chengdu’s utilization rate improved QoQ while equipment installation and qualification in Phase 3 are in progress. Expect revenue (in USD) to grow 8-10% in 3Q24 although industry outlook remains cautious. Reiterate SELL with a lower TP of RM2.04.

Analyst:
Tan J Young
[%haiC%]

$KLSE-UNISEM
Research by HLIB
Sell – TP RM2.04

“Subdued margins"

As 2Q24 revenue undershot its own guidance, 1H24 core PAT of RM27m (-16% YoY) was below expectations. 2Q24 DPS of 2.0 sen will go ex on 19 Sep. Simpang Pulai plant operation remained subpar while in Gopeng, assembly/test pilot line equipment set up is ongoing and has started internal qualification. Chengdu’s utilization rate improved QoQ while equipment installation and qualification in Phase 3 are in progress. Expect revenue (in USD) to grow 8-10% in 3Q24 although industry outlook remains cautious. Reiterate SELL with a lower TP of RM2.04.

Analyst:
Tan J Young
jytan@hlib.hongleong.com.my