[%qoWw%] 
Research by APEX 
HOLD – TP RM4.33

" Impacted by O&G business”

• Frontken’s 1HFY24 net profit at RM63.4m missed our expectations, primarily due to sluggish results in Oil & Gas (O&G) segment.
• Looking ahead, we hold a positive earnings growth outlook, supported by expectations of volume and margin expansion with stronger orders from customers and Plant 2 production ramp up.
• We downgraded our recommendation to HOLD with unchanged target price of RM4.33 by pegging PE multiple of 35.0x to FY25F EPS of 12.5 sen.

Analyst:
Jayden Tan
[%emaz%]

$KLSE-FRONTKN 
Research by APEX 
HOLD – TP RM4.33

" Impacted by O&G business”

• Frontken’s 1HFY24 net profit at RM63.4m missed our expectations, primarily due to sluggish results in Oil & Gas (O&G) segment.
• Looking ahead, we hold a positive earnings growth outlook, supported by expectations of volume and margin expansion with stronger orders from customers and Plant 2 production ramp up.
• We downgraded our recommendation to HOLD with unchanged target price of RM4.33 by pegging PE multiple of 35.0x to FY25F EPS of 12.5 sen.

Analyst:
Jayden Tan
kdtan@apexsecurities.com.my

$FRONTKN / 0128 (FRONTKEN CORPORATION BERHAD)