All signs point to better quarters ahead
■ We reiterate our positive view on Kawan post its 3Q21 briefing as we expect stronger qoq earnings prospects for the group from 4Q21F onwards.
■ Besides upcoming selling price hikes, Kawan continues to see strong demand for its goods, while production will be supported by new labour hires.
■ Maintain Add with an unchanged TP of RM2.70. This is premised on undemanding valuations (14x CY23F P/E) with 3-year EPS CAGR of 18.2%.