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4Q21F recovery after bitter FMCO pill

■ 3Q21 core net loss of RM30m and nil DPS were in line with our expectation. NFOs are engaging with MOF and local authorities on Kedah licence ban.
■ We see a return to the black in 4Q21F, before FY22F/23F core EPS recovers by 4.5x/1.2% yoy as NFO sales recover to pre-pandemic levels by FY22F.
■ Reiterate Add on Magnum (top NFO pick), with a slightly lower TP of RM2.30.

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