[%GZsl%] 
Research by HLIB
BUY – TP RM0.48

"Results above expectations”

Evergreen recorded 2Q24 core net profit of RM7.6m (QoQ: +9.1x; YoY: +1.6x), which brought 1H24’s sum to RM8.3m (1H23: -RM17.7m). This came in above our expectations, making up 78% of our full year forecasts. The positive deviation was due to lower than expected selling and administrative expenses. Looking ahead, we expect 2H24 earnings to be sustained by (i) the increase in MDF capacity in Indonesia; (ii) elevated ASP for MDF; and (iii) higher orders for downstream products (value-added boards and RTA). In view of the positive results, we increase our FY24/25/26 forecasts by +66.0%/+36.0%/+27.0% respectively. Maintain BUY with an unchanged TP of RM0.48 based on 0.4x FY25 BVPS of RM1.20..

Analyst:
Tan Je Jyne
[%yGJj%]

$KLSE-EVERGRN 
Research by HLIB
BUY – TP RM0.48

"Results above expectations”

Evergreen recorded 2Q24 core net profit of RM7.6m (QoQ: +9.1x; YoY: +1.6x), which brought 1H24’s sum to RM8.3m (1H23: -RM17.7m). This came in above our expectations, making up 78% of our full year forecasts. The positive deviation was due to lower than expected selling and administrative expenses. Looking ahead, we expect 2H24 earnings to be sustained by (i) the increase in MDF capacity in Indonesia; (ii) elevated ASP for MDF; and (iii) higher orders for downstream products (value-added boards and RTA). In view of the positive results, we increase our FY24/25/26 forecasts by +66.0%/+36.0%/+27.0% respectively. Maintain BUY with an unchanged TP of RM0.48 based on 0.4x FY25 BVPS of RM1.20..

Analyst:
Tan Je Jyne
JJTan@hlib.hongleong.com.my

$EVERGRN / 5101 (EVERGREEN FIBREBOARD BERHAD)