[%tJtg%] 
Research by Public
Neutral - TP RM1.60

"Higher Demand for Consumer Staples"

CCK’s 2QFY24 core net profit rose by 15.6% YoY to RM19.7m, mainly due to improved performance from the poultry, prawn and retail segments. Cumulative 1HFY24 core net profit of RM40.9m was in-line with our and consensus expectations, accounting for 53% and 50% of full-year estimates, respectively. Although results were in-line, we raise our forecast for FY24-26F by an average of 7%, as we expect CCK to chalk better earnings in 2HFY24, mainly attributable to the festive spending in 4QFY24. We upgrade our call in CCK to Neutral from Underperform with TP of RM1.60, pegged to a higher PE multiple of 11x FY25F EPS, close to its +1SD 5-year average forward PE (see figure 1). We see the valuation justified as we expect demand for consumer staple goods to remain healthy on higher consumer disposable income.

Analyst:
Wong Ling Ling
[%pXaJ%]

$KLSE-CCK 
Research by Public
Neutral - TP RM1.60

"Higher Demand for Consumer Staples"

CCK’s 2QFY24 core net profit rose by 15.6% YoY to RM19.7m, mainly due to improved performance from the poultry, prawn and retail segments. Cumulative 1HFY24 core net profit of RM40.9m was in-line with our and consensus expectations, accounting for 53% and 50% of full-year estimates, respectively. Although results were in-line, we raise our forecast for FY24-26F by an average of 7%, as we expect CCK to chalk better earnings in 2HFY24, mainly attributable to the festive spending in 4QFY24. We upgrade our call in CCK to Neutral from Underperform with TP of RM1.60, pegged to a higher PE multiple of 11x FY25F EPS, close to its +1SD 5-year average forward PE (see figure 1). We see the valuation justified as we expect demand for consumer staple goods to remain healthy on higher consumer disposable income.

Analyst:
Wong Ling Ling
wong.lingling@publicinvestbank.com.my

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)