[%gXGJ%]
Research by Public
Neutral– TP RM1.38

"Slipped Into The Red”

DRB-Hicom (DRB) reported a net loss of RM17.0m in 2QFY24, compared to a net profit of RM33.7m in 1QFY23, primarily due to weaker performance in Proton Holdings and widened losses in Pos Malaysia. The results were below both our and consensus estimates, at 23.2% and 23.3% of full-year forecasts respectively. We have trimmed our FY24-FY26F earnings forecasts by 20-30%, factoring in lower vehicle sales and weaker performance across all its business divisions. Consequently, our sum-of-parts (SOP) based TP is revised to RM1.38 (previously RM1.70). We maintain a Neutral call on DRB.

Analyst:
Denny Oh
[%OvGW%]

$KLSE-DRBHCOM
Research by Public
Neutral– TP RM1.38

"Slipped Into The Red”

DRB-Hicom (DRB) reported a net loss of RM17.0m in 2QFY24, compared to a net profit of RM33.7m in 1QFY23, primarily due to weaker performance in Proton Holdings and widened losses in Pos Malaysia. The results were below both our and consensus estimates, at 23.2% and 23.3% of full-year forecasts respectively. We have trimmed our FY24-FY26F earnings forecasts by 20-30%, factoring in lower vehicle sales and weaker performance across all its business divisions. Consequently, our sum-of-parts (SOP) based TP is revised to RM1.38 (previously RM1.70). We maintain a Neutral call on DRB.

Analyst:
Denny Oh
research@publicinvestbank.com.my