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High input costs to weigh on margins

■ 1HFY3/22 core net profit of RM7.7m (-61.0% yoy) was within our expectations (49%) but below consensus full-year estimate (33.4%).
■ Moving forward, we expect higher raw material prices to impact margins in 2HFY22, partly offset by possible price hikes.
■ Reiterate Hold, with an unchanged TP of RM1.30 (20x CY22 P/E).

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