Remisier note post q4 result
$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
$KPJ / 5878 (KPJ HEALTHCARE BERHAD)
$GAMUDA / 5398 (GAMUDA BERHAD)
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Good morning 馃尰
4Q24 Results: An Abysmal Quarter
- 4Q24 represented one of the most peculiarly (and frustratingly) depressing results seasons ever witnessed in recent memory, ie enduring a perfect storm of non-systemic but broad-based company specific disappointments
- These include Dialog鈥檚 unguided asset impairment, Hartalega鈥檚 guidance for a poorer 1Q25, Nestle鈥檚 revenue/earnings plunge, Genting鈥檚 dividend cut, etc
- Equally peculiar is the divergence of 2025-26 earnings revisions for coverage universe (-1.3%/-2.0%) and FBMKLCI (-0.1%, +0.4%) due to distortions ie upgrades for utility and plantation
- However, most sectors endured earnings cuts (refer to table of revisions by sector)
- Nevertheless, maintaining our playbook that sentiment will recover by 2Q25, guided by easing external headwinds
- But cutting FBMKLCI target to tentatively 1,690 from 1,800 after lowering valuations (-1SD or 14.9x 2025 earnings, from -0.75SD or 15.3x)
- Recalibrating TOP PICKS: EcoWorld (ECW), Gamuda Berhad, Hartalega, Hong Leong Bank, KPJ Healthcare (KPJ), RGB International, Press Metal and VS Industry.
- New additions ECW, Gamuda, Hartalega and KPJ replace Inari, IOI Property, My E.G. Services and聽Pekat
Thanks.