PWROOT
Power Root Berhad
Company Background
$PWROOT / 7237 (POWER ROOT BERHAD)
Research by RHB
$PWROOT / 7237 (POWER ROOT BERHAD)
Research by KENANGA
$PWROOT / 7237 (POWER ROOT BERHAD)
Research by CGS
HOLD – TP RM1.45
" Earnings bottomed, but struggles continue”
■ We downgrade PWRT to Hold, as we cut our GGM-based TP by 34% to RM1.45 post-1QFY25 analyst briefing and relook at our assumptions.
■ Despite our positive view on PWRT’s local sales growth from improvement in private consumption, we expect its Middle East sales to continue to struggle.
■ We find PWRT’s implied CY26 P/E multiple of 13x reasonable with its Middle East struggles and higher input costs slowing down its earnings recovery.
Analyst:
LEW Cheng Wei
chengwei.lew@cgsi.com
Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com
$PWROOT / 7237 (POWER ROOT BERHAD)
Research by RHB
Neutral - TP RM1.51
"Not Out Of The Woods Yet"
Maintain NEUTRAL, with new TP of MYR1.51 from MYR1.68, 1% downside. Power Root’s 1QFY25 (Mar) results missed expectations on lower-than-expected sales. We maintain our cautious stance on the stock as we believe the recovery of export markets will be patchy given the prevailing challenges whilst the domestic market will continue to be constrained by subdued consumer sentiment. Current valuation could have priced in the challenges, whilst the consistent dividend payout and share buyback should support the share price.
Analyst:
Soong Wei Siang
soong.wei.siang@rhbgroup.com
$PWROOT / 7237 (POWER ROOT BERHAD)
Research by Kenanga
Underperform - TP RM1.28
"Taking a Longer Coffee Break"
PWROOT's 1QFY25 results missed expectations due to higher-than-expected operating costs. Its 1QFY25 net profit fell 52% on lower sales from the overseas markets coupled with high operating costs. We cut our FY25-26F net profit forecasts by 12-6%, respectively. Correspondingly, we reduce our TP by 9% from RM1.40 to RM1.28 (on calendarised CY25 earnings) and maintain our UNDERPERFORM call.
Analyst:
Cheow Ming Liang
cheowml@kenanga.com.my
$PWROOT / 7237 (POWER ROOT BERHAD)
Research by CGS
Add - TP RM2.20
"Exports decline drags 1QFY25 earnings"
■ PWRT’s 1QFY25 core net profit of RM7.3m came in below our/Bloomberg consensus full-year estimates at 13%/14%.
■ Improved economic activity in Malaysia will help to support PWRT’s sales and earnings growth throughout FY25F, in our view.
■ Maintain Add with unchanged TP of RM2.20. We think valuations are attractive as it currently trades 1 s.d. below its 10-year mean P/E of 19x.
Analyst:
LEW Cheng Wei
chengwei.lew@cgsi.com
Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com
NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS) : ESOSPOWER ROOT BERHAD ("POWER ROOT" OR THE "COMPANY")
(I) PROPOSED ESOS TERMINATION; AND
(II) PROPOSED NEW ESOS
(COLLECTIVELY, THE "PROPOSALS")
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) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
Immediate Announcement on Shares Buy Back
NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS) : ESOSPOWER ROOT BERHAD ("POWER ROOT" OR THE "COMPANY")
(I) PROPOSED ESOS TERMINATION; AND
(II) PROPOSED NEW ESOS
(COLLECTIVELY, THE "PROPOSALS")
Notice of SBB by a Company Pursuant to Section 127 (16) of CA 2016
$PWROOT / 7237 (POWER ROOT BERHAD)
Research by Kenanga
Underperform – TP RM1.40
“A Leap of Faith Over Flagship Products”
PWROOT will prioritise margin over volume over the immediate term. It is raising prices, narrowing the discount of its products to competitors’. We believe this could lead to a loss in sales volumes. It is optimising its advertising and promotion (A&P) spending, focusing on high-margin flagship products. We maintain our forecasts, TP of RM1.40, and an UNDERPERFORM call.
Analyst:
Cheow Ming Liang
cheowml@kenanga.com.my
$PWROOT / 7237 (POWER ROOT BERHAD)
Research by Kenanga
Under Perform – TP of MYR 1.40
“A Leap of Faith Over Flagship Products"
PWROOT will prioritise margin over volume over the immediate term. It is raising prices, narrowing the discount of its products to competitors’. We believe this could lead to a loss in sales volumes. It is optimising its advertising and promotion (A&P) spending, focusing on high-margin flagship products. We maintain our forecasts, TP of RM1.40, and an UNDERPERFORM call.
Analyst(s):
Cheow Ming Liang
cheowml@kenanga.com.my
Immediate Announcement on Shares Buy Back
PWROOT - Notice of Book Closure
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
Immediate Announcement on Shares Buy Back
Interim Dividend
Notice of SBB by a Company Pursuant to Section 127 (16) of CA 2016
Immediate Announcement on Shares Buy Back
$PWROOT / 7237 (POWER ROOT BERHAD)
Research by RHB
Neutral (Maintained) – TP RM1.68
“Powering Up For FY25F"
Maintain NEUTRAL, with new DCF-derived MYR1.68 TP from MYR1.60, 5% downside. Power Root’s FY24 (Mar) results met expectations as sales eased from the high FY23 base. Current valuation appears to be fair at above 5-year mean – pricing in the gradual recovery of export sales and margin upside of domestic business. That said, we opt not to stretch our valuation further given the challenges of volatile commodity markets and potential demand pushback in response to price increases.
Analyst:
Soong Wei Siang
soong.wei.siang@rhbgroup.com
Quarterly rpt on consolidated results for the financial period ended 31/03/2024
Immediate Announcement on Shares Buy Back
Immediate Announcement on Shares Buy Back
$PWROOT / 7237 (POWER ROOT BERHAD)
KUALA LUMPUR: Power Root Bhd will reclaim its "Ah Huat" trademark in Indonesia after it reached an out-of-court settlement with Indonesian distributor CV Ego Sun Star Sukses Mandiro (CV Ego) on the matter.
© New Straits Times Press (M) Bhd
MATERIAL LITIGATIONMATERIAL LITIGATION PURSUANT TO PARAGRAPH 9.03 OF THE BURSA MALAYSIA SECURITIES BERHAD MAIN MARKET LISTING REQUIREMENTS IN RESPECT OF THE "AH HUAT" TRADEMARK IN INDONESIA.
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)