[%HkJZ%] 
Research by HLIB
BUY – TP RM4.49

" Impacted by O&G weakness and Kulim fire”

2Q24 revenue of RM135m yielded a core net profit of RM32m (+8% QoQ, +10% YoY), bringing 1H24 sum to RM62m (+18% YoY) which missed expectations. 2Q24 performance was hampered by (i) inability to invoice for some O&G completed jobs; and (ii) fire at Kulim facility. For semi, it is seeing much better utilisation of its second Taiwan facility with increasing client demands and some development projects are also starting to bear fruit. For O&G, it will invoice for completed jobs when its customers get new budget allocations. Maintain BUY with a lower TP of RM4.49, pegged to 35x of mid-FY26 EPS.

Analyst:
Tan J Young
[%BnWH%]

$KLSE-FRONTKN 
Research by HLIB
BUY – TP RM4.49

" Impacted by O&G weakness and Kulim fire”

2Q24 revenue of RM135m yielded a core net profit of RM32m (+8% QoQ, +10% YoY), bringing 1H24 sum to RM62m (+18% YoY) which missed expectations. 2Q24 performance was hampered by (i) inability to invoice for some O&G completed jobs; and (ii) fire at Kulim facility. For semi, it is seeing much better utilisation of its second Taiwan facility with increasing client demands and some development projects are also starting to bear fruit. For O&G, it will invoice for completed jobs when its customers get new budget allocations. Maintain BUY with a lower TP of RM4.49, pegged to 35x of mid-FY26 EPS.

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

$FRONTKN / 0128 (FRONTKEN CORPORATION BERHAD)