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CIMB: ATA IMS Bhd – Reduce TP RM0.248

Negative operating margins for the first time

? FY3/22 core EPS was a slight beat, owing to better sales.
? ATA IMS booked negative operating margins for the first time in 4QFY22 due
to suboptimal production rates following the loss of its key customer.
? We retain our Reduce call on ATA and lower our TP to RM0.25 given its grim
and highly uncertain earnings prospects.

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