[%SAxC%]
Research by HLIB
Hold - TP RM1.30

"Further improvements in productivity"

1H24’s core net profit of RM45.1m (vs. core net loss of -RM34.2m in 1H23) accounted for 45% our full-year estimates (consensus: 24%). We consider the results within our expectation (but below consensus), as we expect 2H to come in stronger (vs 1H) on the back of seasonally higher FFB output. During the briefing, management expects FFB output growth to pick up further in 2H24, as it expects further productivity improvements from rehabilitation works carried out since last year. Maintain earnings forecasts. However, our sum-of-parts derived TP lowered to RM1.30 (from RM1.42) as we updated MSM’s latest share price in our valuation parameters.

Analyst:
Chye Wen Fei
[%WDsW%]

$KLSE-FGV
Research by HLIB
Hold - TP RM1.30

"Further improvements in productivity"

1H24’s core net profit of RM45.1m (vs. core net loss of -RM34.2m in 1H23) accounted for 45% our full-year estimates (consensus: 24%). We consider the results within our expectation (but below consensus), as we expect 2H to come in stronger (vs 1H) on the back of seasonally higher FFB output. During the briefing, management expects FFB output growth to pick up further in 2H24, as it expects further productivity improvements from rehabilitation works carried out since last year. Maintain earnings forecasts. However, our sum-of-parts derived TP lowered to RM1.30 (from RM1.42) as we updated MSM’s latest share price in our valuation parameters.

Analyst:
Chye Wen Fei
wfchye@hlib.hongleong.com.my