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UEMS’ 3Q21 core net loss of MYR44.5m (from net loss of MYR22.5m in 3Q20) were below our and consensus expectations but 9M21 sales of MYR915m were above our expectation but in line with management’s FY21 sales target of MYR1.2b. We lower our FY21-23 earnings forecasts by -11% to -293% but maintain MYR0.35 TP (on 0.3x FY22 PBV). Since we downgraded UEMS to SELL on 1 Nov, share price has declined by -11% and is now closing in to our TP. U/G to HOLD.

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