[%QkPJ%] 
Research by RHB
Neutral – TP RM 4.30

" A Disappointing Quarter”

FY24 (Jun) earnings were below our and Street’s expectations due to the normalising demand trend towards health supplement products. While Malaysia’s economic growth is set to expand in 2H24 (as suggested by our economics team), we think Kotra Industries’ near-term earnings recovery should remain choppy given a potentially higher effective tax ahead (in the absence of tax losses to be recognised) and normalising consumer demand for health supplement products.

Analyst:
Oong Chun Sung
[%naIa%]

$KLSE-KOTRA 
Research by RHB
Neutral – TP RM 4.30

" A Disappointing Quarter”

FY24 (Jun) earnings were below our and Street’s expectations due to the normalising demand trend towards health supplement products. While Malaysia’s economic growth is set to expand in 2H24 (as suggested by our economics team), we think Kotra Industries’ near-term earnings recovery should remain choppy given a potentially higher effective tax ahead (in the absence of tax losses to be recognised) and normalising consumer demand for health supplement products.

Analyst:
Oong Chun Sung
chun.sung@rhbgroup.com