[%pGqW%]
Research by Public
Neutral – TP RM 0.860

"Modest Turnaround May Be In Sight”

Despite the challenging business environment, the Group expects a moderate recovery driven by a potential turnaround in its export markets, particularly Japan. Stronger wage growth, government subsidies, and more moderate inflation following the Bank of Japan’s recent interest rate move are expected to boost consumer spending. To note, Japan contributed RM47.4m or 29%, to the Group’s total revenue in FY2023. As for the domestic market, demand is expected to improve underpinned by resilient domestic consumption and rising tourism, however average selling price may remain depressed due to stiff competition. Given the recent fall in share price, our unchanged TP of RM0.86 suggests a downside of only 4.4%. As such, we upgrade our call from Underperform to Neutral. 

Analyst:
Denny Oh
[%tyvR%]

$KLSE-SLP
Research by Public
Neutral – TP RM 0.860

"Modest Turnaround May Be In Sight”

Despite the challenging business environment, the Group expects a moderate recovery driven by a potential turnaround in its export markets, particularly Japan. Stronger wage growth, government subsidies, and more moderate inflation following the Bank of Japan’s recent interest rate move are expected to boost consumer spending. To note, Japan contributed RM47.4m or 29%, to the Group’s total revenue in FY2023. As for the domestic market, demand is expected to improve underpinned by resilient domestic consumption and rising tourism, however average selling price may remain depressed due to stiff competition. Given the recent fall in share price, our unchanged TP of RM0.86 suggests a downside of only 4.4%. As such, we upgrade our call from Underperform to Neutral. 

Analyst:
Denny Oh
research@publicinvestbank.com.my