[%NohH%]
Research by HLIB
HOLD– TP RM0.33

"Back in red”

Hevea’s 2Q24 core net loss of -RM1.0m (1Q24: RM392k, 2Q23: -RM478k) brought 1H24’s sum to -RM654k (1H23: -RM7.8m), which came in below our full year FY24 core net profit forecast of RM3.4m. The results shortfall was due to lower-than-expected revenue. We cut our FY24/25/26 earnings forecasts by - 71%/-47%/-30% respectively to account for lower sales volume. Despite a weakening yen potentially spurring higher demand for Hevea’s products, the weaker USD poses dampener to the group’s earnings. Maintain HOLD with an unchanged TP of RM0.33 (0.45x FY25 P/B).  

 Analyst:
Tan Je Jyne
[%WXIA%]

$KLSE-HEVEA
Research by HLIB
HOLD– TP RM0.33

"Back in red”

Hevea’s 2Q24 core net loss of -RM1.0m (1Q24: RM392k, 2Q23: -RM478k) brought 1H24’s sum to -RM654k (1H23: -RM7.8m), which came in below our full year FY24 core net profit forecast of RM3.4m. The results shortfall was due to lower-than-expected revenue. We cut our FY24/25/26 earnings forecasts by - 71%/-47%/-30% respectively to account for lower sales volume. Despite a weakening yen potentially spurring higher demand for Hevea’s products, the weaker USD poses dampener to the group’s earnings. Maintain HOLD with an unchanged TP of RM0.33 (0.45x FY25 P/B).  

 Analyst:
Tan Je Jyne
jjtan@hlib.hongleong.com.my