[%DJVI%]
Research by RHB
Neutral – TP RM1.10

“Poised For Continued Growth; U/G To NEUTRAL"

Upgrade to NEUTRAL from Sell, new MYR1.10 TP from MYR1.05, c.5% FY25F (Mar) yield. ELK-Desa Resources’ 1QFY25 results missed on the back of higher-than-expected credit costs, which we think was partly influenced by seasonal factors. With its strong receivables growth momentum, and potential benefits from the civil service wage revision and stronger MYR, things could be heading in the right direction for the group. However, we think that at 1.1x P/BV vs c.9% ROE, the current valuation looks rather pricey for entry.

Analysts:
Nabil Thoo 
[%cPUz%]
David Chong CFA 
[%wNIW%]

$KLSE-ELKDESA
Research by RHB
Neutral – TP RM1.10

“Poised For Continued Growth; U/G To NEUTRAL"

Upgrade to NEUTRAL from Sell, new MYR1.10 TP from MYR1.05, c.5% FY25F (Mar) yield. ELK-Desa Resources’ 1QFY25 results missed on the back of higher-than-expected credit costs, which we think was partly influenced by seasonal factors. With its strong receivables growth momentum, and potential benefits from the civil service wage revision and stronger MYR, things could be heading in the right direction for the group. However, we think that at 1.1x P/BV vs c.9% ROE, the current valuation looks rather pricey for entry.

Analysts:
Nabil Thoo 
nabil.thoo@rhbgroup.com
David Chong CFA 
david.chongvc@rhbgroup.com

$ELKDESA / 5228 (ELK-DESA RESOURCES BERHAD)