[%Pyka%]
Research by Kenanga
Market Perform - TP RM0.60

"Lower Revenue Visibility"

OCK’s 1HFY24 results disappointed, mainly due to weaker revenue at the telco network services (TNS) segment. We believe this was likely caused by the slower network rollout of 5G in Malaysia. We cut our FY24F/FY25F earnings by 32%/28%, lowered our TP by 30% to RM0.60 (from RM0.86), and downgrade our recommendation to MARKET PERFORM from OUTPERFORM. A re-rating catalyst could be the award and accelerated rollout of contracts for the second 5G network and JENDELA Phase 2.

Analyst:
Kylie Chan Sze Zan 
[%Rybm%]

$KLSE-OCK
Research by Kenanga
Market Perform - TP RM0.60

"Lower Revenue Visibility"

OCK’s 1HFY24 results disappointed, mainly due to weaker revenue at the telco network services (TNS) segment. We believe this was likely caused by the slower network rollout of 5G in Malaysia. We cut our FY24F/FY25F earnings by 32%/28%, lowered our TP by 30% to RM0.60 (from RM0.86), and downgrade our recommendation to MARKET PERFORM from OUTPERFORM. A re-rating catalyst could be the award and accelerated rollout of contracts for the second 5G network and JENDELA Phase 2.

Analyst:
Kylie Chan Sze Zan 
kyliechan@kenanga.com.my