[%HcWy%] 
Research by Kenanga
Outperform - TP RM2.30

"A Soft Patch But Outlook Intact"

ULICORP’s 1HFY24 results disappointed. Despite a high plant utilisation in its cable support system segment, its core net profit fell 4% YoY dragged by higher-cost projects. As new capacity expansion is seen to come onstream from end-FY24 onwards, we remain confident ULICORP will be well positioned to benefit from the demand for cable support systems in the upcoming construction boom. We trim our FY24F and FY25F earnings by 21% and 3%, respectively, cut our TP by 3% to RM2.30 (from RM2.38). Maintain OUTPERFORM.

Analyst:
Nigel Ng 
[%YGLE%]

$KLSE-ULICORP 
Research by Kenanga
Outperform - TP RM2.30

"A Soft Patch But Outlook Intact"

ULICORP’s 1HFY24 results disappointed. Despite a high plant utilisation in its cable support system segment, its core net profit fell 4% YoY dragged by higher-cost projects. As new capacity expansion is seen to come onstream from end-FY24 onwards, we remain confident ULICORP will be well positioned to benefit from the demand for cable support systems in the upcoming construction boom. We trim our FY24F and FY25F earnings by 21% and 3%, respectively, cut our TP by 3% to RM2.30 (from RM2.38). Maintain OUTPERFORM.

Analyst:
Nigel Ng 
nigel@kenanga.com.my

$ULICORP / 7133 (UNITED U-LI CORPORATION BERHAD)