[%NzTN%]
Research by HLIB
HOLD  – TP RM1.87

"Boosted by better margin and lower costs”

KPJ registered 1H24 core PATMI of RM128.7m (+30.2% YoY), which came in above ours (55%) but below consensus’ (41%) full year forecasts. The positive deviation was mainly attributed to better-than-expected GPM and lower-thanexpected effective tax rate, while revenue was in line with ours. Hence, we raised our FY24f/25f/26f forecasts by 18%/13%/13%. Going forward, we are forecasting a flattish core PATMI YoY growth mainly due to higher effective tax rate assumption after KPJ enjoyed a low base in 2023. Given limited upside and volatile quarterly tax rate, we keep our HOLD rating on KPJ with a marginally higher SOP-derived TP of RM1.87.  

 Analyst:
Chee Kok Siang
[%paHG%]

$KLSE-KPJ
Research by HLIB
HOLD  – TP RM1.87

"Boosted by better margin and lower costs”

KPJ registered 1H24 core PATMI of RM128.7m (+30.2% YoY), which came in above ours (55%) but below consensus’ (41%) full year forecasts. The positive deviation was mainly attributed to better-than-expected GPM and lower-thanexpected effective tax rate, while revenue was in line with ours. Hence, we raised our FY24f/25f/26f forecasts by 18%/13%/13%. Going forward, we are forecasting a flattish core PATMI YoY growth mainly due to higher effective tax rate assumption after KPJ enjoyed a low base in 2023. Given limited upside and volatile quarterly tax rate, we keep our HOLD rating on KPJ with a marginally higher SOP-derived TP of RM1.87.  

 Analyst:
Chee Kok Siang
cheeks@hlib.hongleong.com.my