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LHIB’s 3Q21 results were below our/consensus expectations given weaker-than-expected operating margins. Our FY21-FY23 earnings estimates are cut by 10%-51%. We expect sequential earnings to improve alongside relaxed movement restrictions in Malaysia and Vietnam but earnings recovery could be dampened if high feed raw material cost persists going forward. Maintain BUY with a lower TP of MYR0.76 (based on unchanged regional peer average of 15x FY22 PER).

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