[%IyCm%]
Research by HLIB
HOLD – TP RM8.25

"Broadly inline”

MISC posted 2Q24 core earnings RM550.7m (-21.0% QoQ, 14.4% YoY), bringing 1H24’s sum to RM1.25bn (+6.6% YoY). We deem the results inline with our (51%) and consensus (50%) forecasts. Core bottom line was down 21% QoQ, resulting from lower EBIT from LNG (-31%; lower earnings days and charter rates as LNG demand softened) and Offshore business (-50%; lower revenue recognition from the conversion of Mero-3 as it reaches tail-end of project completion and coupled with higher finance costs). However, it was partially offset by stronger contribution from MHB (4.5x) due to successful cost recovery claims for its legacy projects. Maintain our forecasts and HOLD call with unchanged TP of RM8.25..

Analyst:
Brian Chin
[%otiU%]

$KLSE-MISC
Research by HLIB
HOLD – TP RM8.25

"Broadly inline”

MISC posted 2Q24 core earnings RM550.7m (-21.0% QoQ, 14.4% YoY), bringing 1H24’s sum to RM1.25bn (+6.6% YoY). We deem the results inline with our (51%) and consensus (50%) forecasts. Core bottom line was down 21% QoQ, resulting from lower EBIT from LNG (-31%; lower earnings days and charter rates as LNG demand softened) and Offshore business (-50%; lower revenue recognition from the conversion of Mero-3 as it reaches tail-end of project completion and coupled with higher finance costs). However, it was partially offset by stronger contribution from MHB (4.5x) due to successful cost recovery claims for its legacy projects. Maintain our forecasts and HOLD call with unchanged TP of RM8.25..

Analyst:
Brian Chin
brianchy@hlib.hongleong.com.my