Imputing for lockdown impact
Maintain BUY with lower DCF-TP of MYR26.60
Our FY21-FY23 earnings estimates are reduced by 2%-20% to impute for
negative sales impact from the FMCO. We derive a lower DCF-TP of
MYR26.60 (WACC: 7%, LT growth: 3%) but maintain our BUY call on HEIM
in anticipation for it to emerge from the pandemic with stronger sales
recovery once COVID-19 cases decline and rate of vaccinations rise.