[%XJYU%]
Research by CGS
Add - TP RM0.30

"Still waiting for clarity on several fronts"

■ 1H24 core net profit of RM108m made up 66% of our full-year forecast; we consider this broadly in line as we expect 2H24F to be weaker hoh.
■ In light of upcoming potential Petronas capex cuts, investors have pushed Velesto’s share price down to a level that implies a major future downturn.
■ Reiterate Add with an unchanged DCF-based TP of 30 sen, although we think investors are holding back pending clarity on Petronas capex plans.

Analyst:
Raymond YAP, CFA
E [%uaLZ%]

$KLSE-VELESTO
Research by CGS
Add - TP RM0.30

"Still waiting for clarity on several fronts"

■ 1H24 core net profit of RM108m made up 66% of our full-year forecast; we consider this broadly in line as we expect 2H24F to be weaker hoh.
■ In light of upcoming potential Petronas capex cuts, investors have pushed Velesto’s share price down to a level that implies a major future downturn.
■ Reiterate Add with an unchanged DCF-based TP of 30 sen, although we think investors are holding back pending clarity on Petronas capex plans.

Analyst:
Raymond YAP, CFA
E raymond.yap@cgsi.com