[%nvis%]
Research by RHB
Buy - TP RM5.10

"Selling Overdone, Time To Accumulate; BUY"

BUY and MYR5.10 TP, 77% upside with c.3% yield. The sharp selldown on Guan Chong is overdone. We reiterate our BUY thesis, and try to shed some light on investors’ doubts that may have dampened its share price performance. GUAN has delivered robust YoY earnings growth (+3x) in 1H24 (which exceeded FY23 YoY growth), and is set to book record earnings this year. Management has guided for a higher combined ratio into 2H24, and an even better ratio into 1H25 (~50% forward sales covered), underpinned by robust demand and the shortage of beans and grinding on offer.

Analyst:
Lee Meng Horng
[%hieK%]

$KLSE-GCB
Research by RHB
Buy - TP RM5.10

"Selling Overdone, Time To Accumulate; BUY"

BUY and MYR5.10 TP, 77% upside with c.3% yield. The sharp selldown on Guan Chong is overdone. We reiterate our BUY thesis, and try to shed some light on investors’ doubts that may have dampened its share price performance. GUAN has delivered robust YoY earnings growth (+3x) in 1H24 (which exceeded FY23 YoY growth), and is set to book record earnings this year. Management has guided for a higher combined ratio into 2H24, and an even better ratio into 1H25 (~50% forward sales covered), underpinned by robust demand and the shortage of beans and grinding on offer.

Analyst:
Lee Meng Horng
lee.meng.horng@rhbgroup.com