[%gPbF%]
Research by Kenanga
Outperform - TP RM21.20

"Still Sailing Steadily"

PETDAG’s 1HFY24 was within our and street’s estimates. Higher opex, YoY, resulted in lower core earnings for 1HFY24. We cut our DCF-TP by 11% to RM21.20 after increasing our WACC to account for the timing uncertainties of the RON95 subsidy rationalisation. Despite that, the implied FY24F PER would be at 21.2x, still below its 5-year mean of 26.5x. We maintain our forecast and OUTPERFORM call.

Analyst:
Lim Sin Kiat, CFA 
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$KLSE-PETDAG
Research by Kenanga
Outperform - TP RM21.20

"Still Sailing Steadily"

PETDAG’s 1HFY24 was within our and street’s estimates. Higher opex, YoY, resulted in lower core earnings for 1HFY24. We cut our DCF-TP by 11% to RM21.20 after increasing our WACC to account for the timing uncertainties of the RON95 subsidy rationalisation. Despite that, the implied FY24F PER would be at 21.2x, still below its 5-year mean of 26.5x. We maintain our forecast and OUTPERFORM call.

Analyst:
Lim Sin Kiat, CFA 
limsk@kenanga.com.my