[%GIUM%] 
Research by Kenanga
OUTPERFORM – TP RM2.86

"Growth Driven by Innovation”

TGUAN’s 1HFY24 results disappointed due to cost pressures. Nonetheless, 1HFY24 core net profit rose 7% YoY driven by stronger sales in plastic packaging and F&B divisions. Despite some cost pressures and stronger MYR, TGUAN remains poised to grow in Europe and US in the longer term, thanks to product innovation. We trim our FY24F and FY25F earnings forecasts by 8% and 12%, respectively. However, we maintain our TP of RM2.86 as we roll forward our valuation base year to FY25F (from FY24F), with our ascribed PER unchanged at 11x. Reiterate OUTPERFORM.

Analyst:
Thin Yun Jing 
[%gBkl%]

$KLSE-TGUAN 
Research by Kenanga
OUTPERFORM – TP RM2.86

"Growth Driven by Innovation”

TGUAN’s 1HFY24 results disappointed due to cost pressures. Nonetheless, 1HFY24 core net profit rose 7% YoY driven by stronger sales in plastic packaging and F&B divisions. Despite some cost pressures and stronger MYR, TGUAN remains poised to grow in Europe and US in the longer term, thanks to product innovation. We trim our FY24F and FY25F earnings forecasts by 8% and 12%, respectively. However, we maintain our TP of RM2.86 as we roll forward our valuation base year to FY25F (from FY24F), with our ascribed PER unchanged at 11x. Reiterate OUTPERFORM.

Analyst:
Thin Yun Jing 
thinyj@kenanga.com.my

$TGUAN / 7034 (THONG GUAN INDUSTRIES BERHAD)