[%EEOW%] 
Research by Public
Neutral – TP RM1.020

" Lifted by Investment Sale and FV Gains"

Fiamma Holdings Bhd’s (Fiamma) headline net profit for 2QFY24 surged more than tenfold QoQ to RM11.5m, mainly due to higher sales and fair value gains in other investments. However, after stripping out non-recurring items, the core net profit for the quarter was down 13.8% QoQ to RM3.5m. After adjusting for non operating items, cumulative 6MFY24 results were below expectation, accounting For only 27% of our full year estimates. The discrepancies in our results were mainly due to slower than expected demand recovery from trading and services segment and widened losses from property development segment. We trim our FY24-FY25F earnings forecasts by 27%, factoring in slower demand recovery and lower sales of its completed and unsold units. Consequently, our sum-of- parts (SOP) based TP is revised to RM1.02 (previously RM1.08). We maintain a Neutral call on Fiamma.

Analyst:
Denny Oh
[%HZpj%]

$KLSE-FIAMMA 
Research by Public
Neutral – TP RM1.020

" Lifted by Investment Sale and FV Gains"

Fiamma Holdings Bhd’s (Fiamma) headline net profit for 2QFY24 surged more than tenfold QoQ to RM11.5m, mainly due to higher sales and fair value gains in other investments. However, after stripping out non-recurring items, the core net profit for the quarter was down 13.8% QoQ to RM3.5m. After adjusting for non operating items, cumulative 6MFY24 results were below expectation, accounting For only 27% of our full year estimates. The discrepancies in our results were mainly due to slower than expected demand recovery from trading and services segment and widened losses from property development segment. We trim our FY24-FY25F earnings forecasts by 27%, factoring in slower demand recovery and lower sales of its completed and unsold units. Consequently, our sum-of- parts (SOP) based TP is revised to RM1.02 (previously RM1.08). We maintain a Neutral call on Fiamma.

Analyst:
Denny Oh
research@publicinvestbank.com.my