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Research by Kenanga
Outperform - TP RM1.42

"Cost Concerns Priced In"

BPPLAS’s 1HFY24 results met our expectations. Despite an 8% revenue growth, its 1HFY24 core net profit eased 1% YoY as rising operating costs more than offset the increase in sales volume for plastic packaging. While market demand remains sluggish, the company is focusing on expanding its product range with an emphasis on higher-margin products to mitigate cost pressures which should flow into 2025 earnings. While maintaining our forecast and TP of RM1.42, our call is upgraded to OUTPERFORM (from MARKET PERFORM) following recent price weakness.

Analyst:
Thin Yun Jing 
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$KLSE-BPPLAS
Research by Kenanga
Outperform - TP RM1.42

"Cost Concerns Priced In"

BPPLAS’s 1HFY24 results met our expectations. Despite an 8% revenue growth, its 1HFY24 core net profit eased 1% YoY as rising operating costs more than offset the increase in sales volume for plastic packaging. While market demand remains sluggish, the company is focusing on expanding its product range with an emphasis on higher-margin products to mitigate cost pressures which should flow into 2025 earnings. While maintaining our forecast and TP of RM1.42, our call is upgraded to OUTPERFORM (from MARKET PERFORM) following recent price weakness.

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