[%ejCc%] 
Research by Maybank
HOLD – TP RM4.20

" 2Q24: Negative surprises”

FRCB’s 2Q24 earnings was dragged by O&G-related billing issues and the fire incident at its semicon plant in Kulim. We lower FY24E earnings by 11% but maintain FY25-26E. This leads to a lower TP of MYR4.20 (-12%) as we also peg valuation to a lower 35x FY25E PER, its updated LT mean (previously 39x FY25E PER). Now on a balanced risk-reward profile, we downgrade FRCB to HOLD from BUY.

Analyst:
Anand Pathmakanthan
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Arvind Jayaratnam
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$KLSE-FRONTKN 
Research by Maybank
HOLD – TP RM4.20

" 2Q24: Negative surprises”

FRCB’s 2Q24 earnings was dragged by O&G-related billing issues and the fire incident at its semicon plant in Kulim. We lower FY24E earnings by 11% but maintain FY25-26E. This leads to a lower TP of MYR4.20 (-12%) as we also peg valuation to a lower 35x FY25E PER, its updated LT mean (previously 39x FY25E PER). Now on a balanced risk-reward profile, we downgrade FRCB to HOLD from BUY.

Analyst:
Anand Pathmakanthan
anand.pathmakanthan@maybank-ib.com
Arvind Jayaratnam
arvind.jayaratnam@maybank.com

$FRONTKN / 0128 (FRONTKEN CORPORATION BERHAD)