[%CPvh%]
Research by Public
Neutral – TP RM2.87

"Within Expectations”

Apex Healthcare’s (ApexH) 2QFY24 net profit 2QFY24 dropped by 92.8% YoY to RM23.6m, mainly due to a one-off gain of RM304.4m from SAG’s effective divestment in 2QFY23. After stripping off the non-operating items, ApexH’s 2QFY24 core net profit dropped by 5.7% YoY to RM23.7m. The results were within our estimates at 49.2% but above streets’ estimates at 60% of full-year forecasts respectively. We are positive on the Group’s robust marketing efforts and new product launches, but we remain cautious on the potential impact of declining demand for Covid-related products. All told, we maintain our FY24F- 26F earnings forecast and reiterate our Neutral call on ApexH, with an unchanged TP of RM2.87 based on 19x 5-year historical mean on FY25F EPS. On a side note, ApexH declared an interim single-tier dividend of 3.0 sen per share.

Analyst:
Thye May Ting
[%CIUj%]

$KLSE-AHEALTH
Research by Public
Neutral – TP RM2.87

"Within Expectations”

Apex Healthcare’s (ApexH) 2QFY24 net profit 2QFY24 dropped by 92.8% YoY to RM23.6m, mainly due to a one-off gain of RM304.4m from SAG’s effective divestment in 2QFY23. After stripping off the non-operating items, ApexH’s 2QFY24 core net profit dropped by 5.7% YoY to RM23.7m. The results were within our estimates at 49.2% but above streets’ estimates at 60% of full-year forecasts respectively. We are positive on the Group’s robust marketing efforts and new product launches, but we remain cautious on the potential impact of declining demand for Covid-related products. All told, we maintain our FY24F- 26F earnings forecast and reiterate our Neutral call on ApexH, with an unchanged TP of RM2.87 based on 19x 5-year historical mean on FY25F EPS. On a side note, ApexH declared an interim single-tier dividend of 3.0 sen per share.

Analyst:
Thye May Ting
thye.mayting@publicinvestbank.com.my