[%zoTC%]
Research by HLIB
BUY– TP RM23.27

" Still a miss”

3QFY24 core net profit of RM297.1m (+91.7% QoQ; +65.4% YoY) took 9MFY24’s total sum to RM677.1m (-34.0%). The results missed expectations, accounting for only 61.1-61.2% of our and consensus full-year estimates, due mainly to slower-than-expected improvement at manufacturing segment and 21.3%- owned Synthomer. We lower our FY24/25/26 core net profit forecasts by - 11.2%/-7.1%/-5.8%, mainly to account for lower EBIT margin assumptions at manufacturing segment. Post earnings revision, we maintain our BUY rating on KLK, with a lower sum-of-parts TP of RM23.27. 
 
Analyst:
Chye Wen Fei
[%MHOF%]

$KLSE-KLK
Research by HLIB
BUY– TP RM23.27

" Still a miss”

3QFY24 core net profit of RM297.1m (+91.7% QoQ; +65.4% YoY) took 9MFY24’s total sum to RM677.1m (-34.0%). The results missed expectations, accounting for only 61.1-61.2% of our and consensus full-year estimates, due mainly to slower-than-expected improvement at manufacturing segment and 21.3%- owned Synthomer. We lower our FY24/25/26 core net profit forecasts by - 11.2%/-7.1%/-5.8%, mainly to account for lower EBIT margin assumptions at manufacturing segment. Post earnings revision, we maintain our BUY rating on KLK, with a lower sum-of-parts TP of RM23.27. 
 
Analyst:
Chye Wen Fei
wfchye@hlib.hongleong.com.my