Frontken Corporation Berhad - Looking forward to stronger FY24F
Fri, 23-Feb-2024 08:01 am
by Jayden Tan • Apex Research

Counter

FRONTKN (0128)

Target Price (RM)

4.20

Recommendation

Buy

  • Frontken’s FY23 net profit at RM112m is in line with our expectations.
  • Looking ahead, we hold a positive outlook on earnings growth, supported by expectations of volume and margin expansion along with strong orders from customers and ramping up of Plant 2 production.
  • We upgrade Frontken to BUY with higher target price of RM4.20 by pegging PE multiple of 33x to FY25F EPS of 12.7 sen.
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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