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CMS’ results were above expectations with 9M21 core net profit at 99%/86% of our/consensus FY21E; the beat coming from its cement and associates. We raise FY21-FY23E core net profit by 25%-26% p.a. and RNAV/shr est. to MYR2.39. Our revised TP is MYR1.68 on unchanged 0.7x RNAV peg. With decent upside to our new TP, we tactically upgrade the stock to a BUY. Positively too, measures are being put in place to strengthen its risk management framework following findings by KPMG.

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