[%iLGK%] 
Research by Kenanga
OUTPERFORM – TP RM2.80

" Stretching New Frontiers”

Despite soft demand and rising competition, TGUAN guided for growth driven by ongoing innovation, responsive services and aggressive marketing, especially of more high performance sustainable stretch films in Europe and North America. Additionally, it is ramping up production in its industrial bag division and has commissioned a new stretch hood line, optimising production efficiency. We tone down our FY24F earnings forecasts marginally by 3% to reflect short-term cost pressures, with FY25F numbers unchanged. We also make minor housekeeping adjustments on the share base due to ESOS, hence our TP is trimmed slightly to RM2.80 (from RM2.86), but we maintain our OUTPERFORM call.

Analyst:
Thin Yun Jing 
 [%tcqB%]

$KLSE-TGUAN 
Research by Kenanga
OUTPERFORM – TP RM2.80

" Stretching New Frontiers”

Despite soft demand and rising competition, TGUAN guided for growth driven by ongoing innovation, responsive services and aggressive marketing, especially of more high performance sustainable stretch films in Europe and North America. Additionally, it is ramping up production in its industrial bag division and has commissioned a new stretch hood line, optimising production efficiency. We tone down our FY24F earnings forecasts marginally by 3% to reflect short-term cost pressures, with FY25F numbers unchanged. We also make minor housekeeping adjustments on the share base due to ESOS, hence our TP is trimmed slightly to RM2.80 (from RM2.86), but we maintain our OUTPERFORM call.

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

$TGUAN / 7034 (THONG GUAN INDUSTRIES BERHAD)