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3Q21: FMCO adversely affected earnings

■ 9MFY21 core net profit of RM7.3m came in below expectations, mainly due to tight movement restrictions across all of its operating markets in 3QFY21.
■ However, we project a strong recovery in 4QFY21 as mall footfall rebounds, coinciding with the year-end festivities. 4Q is usually seasonally stronger.
■ We think the recovery looks priced in at this juncture. Reiterate Hold with a higher TP of RM0.76 (18x CY23F P/E) as we roll over valuations to CY23F.

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