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SDPR’s 3Q21 net loss of MYR15.8m (-1.2x YoY, -1.8x QoQ) were below our and consensus estimates but 9M21 sales of MYR1.9b were above expectations. Management is targeting to exceed its FY21 sales target of MYR2.4b. We lower our earnings forecasts by -17% to -26% but keep our TP largely unchanged at MYR0.69 TP (on an unchanged 0.5x FY22 PBV). Upgrade to HOLD after the stock declined by -9% since our downgrade to SELL on 28 Oct. It now presents a total return of 7%.

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