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Pharmaceutical segment the saviour

■ 9M21 core net profit of RM23.7m (-39.5% yoy) was below expectations, due to weaker-than-expected contribution from the convenience store segment.
■ We expect better qoq results in 4Q21, due to strong performance from the pharmaceutical segment and recovery in its convenience store business.
■ Reiterate Add with a higher TP of RM1.80 (29x CY23F P/E). We like SEM for its exciting earnings growth opportunities via its pharmaceutical segment.

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