[%gIbt%] 
Research by Public
Outperform – TP RM1.30

"Another Good Quarter”

SKP Resources (SKP) recorded a sequentially stronger quarter, with a 1QFY25 net profit of RM28.3m (+31.3% YoY, +20.9% QoQ) coming on the back of an improved RM505m (+17.1% YoY, +11.6% QoQ) revenue. Net profit margin was also better at 5.6% (1QFY24: 5.0%) as greater economies of scale was attained on higher production levels. Coming in line with our and consensus estimates at 23% of full-year numbers, we remain encouraged by headway being made by the Group in expanding its customer base while also sustaining and growing order flows from its existing key customers. Looser monetary conditions in the months ahead should aid the recovery in consumption spending, benefiting the Group positively. Our earnings estimates are kept unchanged. We remain affirmed of SKP’s long-term growth prospects and maintain our Outperform call with a PE-derived target price of RM1.30 based on 15x multiple to CY25 EPS.

Analyst:
Ching Weng Jin
[%StJv%]

$KLSE-SKPRES 
Research by Public
Outperform – TP RM1.30

"Another Good Quarter”

SKP Resources (SKP) recorded a sequentially stronger quarter, with a 1QFY25 net profit of RM28.3m (+31.3% YoY, +20.9% QoQ) coming on the back of an improved RM505m (+17.1% YoY, +11.6% QoQ) revenue. Net profit margin was also better at 5.6% (1QFY24: 5.0%) as greater economies of scale was attained on higher production levels. Coming in line with our and consensus estimates at 23% of full-year numbers, we remain encouraged by headway being made by the Group in expanding its customer base while also sustaining and growing order flows from its existing key customers. Looser monetary conditions in the months ahead should aid the recovery in consumption spending, benefiting the Group positively. Our earnings estimates are kept unchanged. We remain affirmed of SKP’s long-term growth prospects and maintain our Outperform call with a PE-derived target price of RM1.30 based on 15x multiple to CY25 EPS.

Analyst:
Ching Weng Jin
research@publicinvestbank.com.my