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Research by Public
Outperform – TP RM2.92

“Strong Earnings Momentum Continues"

Excluding the impact of i) foreign exchange (FX) gain (RM11.8m) and ii) losses from minority interest in 90%-owned Mi Equipment Korea (RM0.5m), Mi Technovation saw its 1HFY24 core earnings surge from RM15.1m in the preceding year to RM43m. Led by SEBU and SMBU, the commendable results surpassed our and consensus full-year expectations, making up 62.2% and 56.5%, respectively. On a more positive note, losses from the Korean operation had shrunken substantially. Despite the stronger-than expected results in 1HFY24, we make no changes to our earnings forecast as management plans to incur additional provision of RM8.8m for staff costs. Maintain Outperform with an unchanged TP of RM2.92 based on 33x FY25 EPS. The first DPS of 2.5sen was declared for the quarter (vs 2QFY24: 2sen).

Analyst:
Chong Hoe Leong
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$KLSE-MI
Research by Public
Outperform – TP RM2.92

“Strong Earnings Momentum Continues"

Excluding the impact of i) foreign exchange (FX) gain (RM11.8m) and ii) losses from minority interest in 90%-owned Mi Equipment Korea (RM0.5m), Mi Technovation saw its 1HFY24 core earnings surge from RM15.1m in the preceding year to RM43m. Led by SEBU and SMBU, the commendable results surpassed our and consensus full-year expectations, making up 62.2% and 56.5%, respectively. On a more positive note, losses from the Korean operation had shrunken substantially. Despite the stronger-than expected results in 1HFY24, we make no changes to our earnings forecast as management plans to incur additional provision of RM8.8m for staff costs. Maintain Outperform with an unchanged TP of RM2.92 based on 33x FY25 EPS. The first DPS of 2.5sen was declared for the quarter (vs 2QFY24: 2sen).

Analyst:
Chong Hoe Leong
chonghoeleong@publicinvestbank.com.my