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2QFY22 results disappointed given weaker-than-expected contribution from ILF. That said, we believe earnings from all core segments (MPM, ILF & POCE) should improve sequentially on relaxed movement restrictions and potential tapering of feed costs. Nevertheless, we reduce FY22-FY24E earnings by 2%-8%. Maintain SELL with a lower DCF-TP of MYR4.00 (-35sen, WACC: 7%, LT growth: 4%) on rich valuations.

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