[%IPmv%]
Research by TA
Hold – TP RM1.30

“Lower YoY Net Profit due to Rise in Impairment Allowance"

We lower Elk-Desa’s TP to RM1.30/share from RM1.35/share. Our valuation is based on a 25% discount to Malaysia’s average NBFI (such as AEON Credit and RCE Capital) P/B ratio of 1.6x due to Elk-Desa’s smaller market cap and less superior ROEs. However, given that the risk-reward potential has widened due to the recent decrease in the share price, we upgraded Elk-Desa from sell to HOLD.

Analyst:
Li Hsia Wong 
[%WFbF%]

$KLSE-ELKDESA
Research by TA
Hold – TP RM1.30

“Lower YoY Net Profit due to Rise in Impairment Allowance"

We lower Elk-Desa’s TP to RM1.30/share from RM1.35/share. Our valuation is based on a 25% discount to Malaysia’s average NBFI (such as AEON Credit and RCE Capital) P/B ratio of 1.6x due to Elk-Desa’s smaller market cap and less superior ROEs. However, given that the risk-reward potential has widened due to the recent decrease in the share price, we upgraded Elk-Desa from sell to HOLD.

Analyst:
Li Hsia Wong 
liwong@ta.com.my

$ELKDESA / 5228 (ELK-DESA RESOURCES BERHAD)