Central Global Bhd - Cease Coverage
Tue, 02-Sep-2025 07:58 am
by Research Team • Apex Research

Counter

CGB (8052)

Target Price (RM)

N/A

Recommendation

Not Rated

  • We cease coverage on Central Global Berhad with immediate effect due to internal resource reallocation.

  • While its Construction segment remain resilient, we continue to see headwinds, particularly its increasing contract asset and receivables, and inherent difficulties in turning its Manufacturing segment into sustainable, profitable business.

  • Recommendation reclassified from BUY to NON-RATED with last TP of RM1.00, based on SOP valuations and ascribed with three-star ESG rating. However, investors should no longer rely on our previous earnings forecasts and target price when making investment decisions.

 

Cease Coverage. We are ceasing coverage on CGB with immediate effect due to reallocation of internal resources. As such, we will no longer update our financial forecasts, and investors are advised not to rely on our previous earnings forecasts and recommendations when making investment decisions.

 

Outlook. In the near term, we expect CGB’s Construction segment to remain resilient, supported by a healthy order book. However, we see some headwinds, particularly in its increasing contract asset and receivables. Furthermore, its expansion plans within the Manufacturing segment may go through a prolonged gestation period, lowering production efficiency.

 

Valuation. We reclassify our recommendation from BUY to NON-RATED following the cessation of coverage. Our last target price for the company was RM1.00, derived through SOP valuations. However, investors should no longer rely on our previous earnings forecasts and target price when making investment decisions.

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