[%fRzk%]
Research by HLIB
Hold - TP RM19.13

"Earnings to moderate in 2H24"

PetDag raked in 2Q24 core net profit of RM286.3m (+26% QoQ, +4% YoY), lifting 1H24 core earnings to RM512.7m (-11% YoY) – accounting for 54%/52% of ours/consensus FY24 forecasts. We deem the results within expectations. Core earnings rose 26% QoQ due to better EBIT contribution from Commercial (+37%) as average MOPS jet fuel price slipped 4% QoQ and we believe a meaningful portion of diesel sales from Retail channel has been diverted to the Commercial segment. We anticipate contribution from Retail segment to record sequential decline in 2H24 as the impact of floated diesel prices will be fully felt from 3Q24 onwards. Maintain our forecasts and HOLD call with unchanged TP of RM19.13.

Analyst:
Brian Chin
[%eZSs%]

$KLSE-PETDAG
Research by HLIB
Hold - TP RM19.13

"Earnings to moderate in 2H24"

PetDag raked in 2Q24 core net profit of RM286.3m (+26% QoQ, +4% YoY), lifting 1H24 core earnings to RM512.7m (-11% YoY) – accounting for 54%/52% of ours/consensus FY24 forecasts. We deem the results within expectations. Core earnings rose 26% QoQ due to better EBIT contribution from Commercial (+37%) as average MOPS jet fuel price slipped 4% QoQ and we believe a meaningful portion of diesel sales from Retail channel has been diverted to the Commercial segment. We anticipate contribution from Retail segment to record sequential decline in 2H24 as the impact of floated diesel prices will be fully felt from 3Q24 onwards. Maintain our forecasts and HOLD call with unchanged TP of RM19.13.

Analyst:
Brian Chin
brianchy@hlib.hongleong.com.my