[%FQyw%] 
Research by Public
Outperform – TP RM5.36

" Positive Tone Ahead”

Management sees stronger growth in 2H in anticipation of a higher energy availability factor of 98%-99% from the Don Sahong Hydropower plant during the wet period and a normalised margin from the resources segment. On a more positive note, the 50%-owned oleochemical business, Edenor Technology, is expected to turnaround in 2H, led by higher capacity utilisation. Key re-rating catalysts include i) a more favourable power purchase agreement, which is being finalised, and ii) stronger earnings growth from the 40%-owned modern farming business. Maintain Outperform with an unchanged SOP-based TP of RM5.36.

Analyst:
Chong Hoe Leong
[%apOP%]

$KLSE-MFCB 
Research by Public
Outperform – TP RM5.36

" Positive Tone Ahead”

Management sees stronger growth in 2H in anticipation of a higher energy availability factor of 98%-99% from the Don Sahong Hydropower plant during the wet period and a normalised margin from the resources segment. On a more positive note, the 50%-owned oleochemical business, Edenor Technology, is expected to turnaround in 2H, led by higher capacity utilisation. Key re-rating catalysts include i) a more favourable power purchase agreement, which is being finalised, and ii) stronger earnings growth from the 40%-owned modern farming business. Maintain Outperform with an unchanged SOP-based TP of RM5.36.

Analyst:
Chong Hoe Leong
chonghoeleong@publicinvestbank.com.my

$MFCB / 3069 (MEGA FIRST CORPORATION BERHAD)