Panasonic Manufacturing Malaysia Berhad

$PANAMY / 3719 (PANASONIC MANUFACTURING MALAYSIA BERHAD)
Research by HLIB

$PANAMY / 3719 (PANASONIC MANUFACTURING MALAYSIA BERHAD)
Research by HLIB
HOLD – TP RM20.02

"Broadly in line”

PMM registered 1QFY25 results with revenue of RM221.0m (+7% QoQ; -3% YoY) and core PAT of RM18.5m (+18% QoQ; -17% YoY). Overall, LASC segment chalked in moderation in sales which were due to softness in export market sales. HVAC performed better, benefitting from the warmer weather that lifted the demand for fan products. The group is intensifying its effort to venture into new products and expand its current line-up to maintain its competitiveness. On top of that, we reckon that PMM would be potential beneficiary of discretionary spending from the government’s income boosting measures such as the EPF Account 3 and civil servants pay hike. Reiterate HOLD with unchanged TP of RM20.02 based on 13x of FY25 EPS.

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Hong Leong Investment Bank (HLIB) Research is maintaining a cautious outlook on Panasonic Manufacturing Malaysia Bhd (PMM), as the group’s growth could be muted due to suboptimal plant utilisation.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

$PANAMY / 3719 (PANASONIC MANUFACTURING MALAYSIA BERHAD)
Research by HLIB
Hold – TP of MYR 20.02

“Time is of the essence”

We expect muted growth from hereon due to suboptimal plant utilisation from the termination of kitchen appliances. From management guidance , the new water related products will take 3-5 years to ramp up. We view that this venture might not be able to fully offset the decline from the loss of sales of recently terminated kitchen appliances businesses as the group does not have a first mover advantage. Additionally, the price point for these products is set slightly higher than its competitors, which may further hinder efforts to gain market share. On a brighter note, we reckon that PMM could be potentially benefit from higher discretionary spending from the EPF Account 3 and civil servants pay hike. Apart from that, moderation of raw material prices would also help in cushioning the bottom line impact from lower sales. Maintain HOLD, with TP of RM20.02 based on 13x PE multiple on FY25 earnings.

Analyst(s):
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

$PANAMY / 3719 (PANASONIC MANUFACTURING MALAYSIA BERHAD)

$PANAMY / 3719 (PANASONIC MANUFACTURING MALAYSIA BERHAD)
Research by HLIB
Hold – TP RM20.02

“Moderation in sales"

PMM chalked in 4QFY24 core PAT of RM15.7m (-30% QoQ; -12% YoY), which brought FY24 sum to RM75.4m (+32% YoY). Overall, LASC segment sagged from the termination on kitchen appliances. We expect tepid profitability on the back of the suboptimal plant utilisation from the termination of kitchen appliances coupled with higher sunk cost due to excess labour in hand. Additionally, we opine the export outlook to be muted for PMM with the moderation in global growth as a result of a slowdown in major economic activities and sustained inflationary pressure. We roll forward our valuation horizon to FY25 (from FY24) based on 13x PE – our TP increases to RM20.02 (from RM18.70). Maintain HOLD.

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my

PANAMY - Notice of Book Closure

Final Dividend

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RECURRENT RELATED PARTY TRANSACTIONSPANASONIC MANUFACTURING MALAYSIA BERHAD ("PMMA" OR "the Company")

PROPOSED RENEWAL OF EXISTING SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE ("PROPOSED SHAREHOLDERS' MANDATE")

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD