[%MrYr%] 
Research by TA
Buy – TP RM1.05

" Approaching a Capacity Replenishment Cycle?”

We walked away from MALAKOF’s recent briefing more convinced of its capacity replenishment prospects premised on: (1) An increasingly pressing need to accelerate capacity additions from rapidly declining reserve margins; (2) Sizeable scheduled new capacity which has yet to be awarded; (3) A tight demand-supply condition which could lead to better returns for any potential new capacity. Reiterate Buy at unchanged SOPderived TP of RM1.05. Further upside is seen should MALAKOF successfully secure new capacity.

Analyst: 
Hafriz Hezry 
[%Lixb%]

$KLSE-MALAKOF 
Research by TA
Buy – TP RM1.05

" Approaching a Capacity Replenishment Cycle?”

We walked away from MALAKOF’s recent briefing more convinced of its capacity replenishment prospects premised on: (1) An increasingly pressing need to accelerate capacity additions from rapidly declining reserve margins; (2) Sizeable scheduled new capacity which has yet to be awarded; (3) A tight demand-supply condition which could lead to better returns for any potential new capacity. Reiterate Buy at unchanged SOPderived TP of RM1.05. Further upside is seen should MALAKOF successfully secure new capacity.

Analyst: 
Hafriz Hezry 
hafrizhezry@ta.com.my

$MALAKOF / 5264 (MALAKOFF CORPORATION BERHAD)