[%Eepj%] 
Research by Public
Underperform – TP RM0.67

" Below Expectation”

Chin Well Holdings (Chin Well) reported another sequentially stronger 4QFY24 net profit of RM3.7m (+47.5% QoQ) due to better performance of Fasteners division, though weaker YoY (-16.2%) due to widened losses in Wire division. Cumulative 12MFY24 net profit of RM9.1m (-76.5% YoY) was still below both our and consensus expectations, accounting for 58% and 87% of full year estimates, respectively. The discrepancy was largely due to slower than expected demand recovery. We trim our FY25-26F earnings by average of 30% to factor in lower sales from the Fasteners division and weaker margins from Wire division. Consequently, our PE-based TP is revised to RM0.67 (previously RM1.04). We maintain Underperform call on Chin Well.

Analyst:
Denny Oh
[%qcCF%]

$KLSE-CHINWEL 
Research by Public
Underperform – TP RM0.67

" Below Expectation”

Chin Well Holdings (Chin Well) reported another sequentially stronger 4QFY24 net profit of RM3.7m (+47.5% QoQ) due to better performance of Fasteners division, though weaker YoY (-16.2%) due to widened losses in Wire division. Cumulative 12MFY24 net profit of RM9.1m (-76.5% YoY) was still below both our and consensus expectations, accounting for 58% and 87% of full year estimates, respectively. The discrepancy was largely due to slower than expected demand recovery. We trim our FY25-26F earnings by average of 30% to factor in lower sales from the Fasteners division and weaker margins from Wire division. Consequently, our PE-based TP is revised to RM0.67 (previously RM1.04). We maintain Underperform call on Chin Well.

Analyst:
Denny Oh
research@publicinvestbank.com.my

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)