Valuations Remain Rich Against ADV Normalisation; Downgrade To SELL

We expect the stock to register three consecutive years of earnings contraction from 2021-23 as ADV is expected to continue normalising downwards off a high base. Current 2022 PE valuations of +0.5SD is not particularly attractive against the backdrop of a still declining ADV expectation. Post earnings adjustment and rolling forward our valuations to 2022, we lower our target price to RM7.00 and downgrade our recommendation to a SELL.