$GTRONIC / 7022 (GLOBETRONICS TECHNOLOGY BERHAD)
Research by RHB
Neutral – TP RM 1.21

"Dialling Back Our Expectations For FY24”

Maintain NEUTRAL, with new MYR1.21 TP from MYR1.29, 8% upside andc.3% FY25F yield. 1H24 core earnings of MYR9.5m (+39.4% YoY) missed expectations due to slower-than-expected topline despite margin expansions from favourable FX movement. We dial back our expectations and anticipate a year of contraction for FY24F, before rebounding in FY25F with potential contribution from new programmes. Current valuation looks fair given the dull near-term outlook despite the share price taking a beating

Analyst:
Lee Meng Horng
lee.meng.horng@rhbgroup.com