HPP Holdings (HPPHB) reported better-than-expected FY24 results despite a 56% year-on-year decline in core net profit, primarily due to weak orders and higher operating costs. The company's revenue fell by 15% year-on-year, affected by underperformance in non-corrugated packaging and rigid boxes, although corrugated packaging showed growth. However, signs of recovery in the electronic and electrical (E&E) segment suggest a potential turnaround in FY25.
Kenanga Investment Bank (Kenanga) maintains a MARKET PERFORM rating for HPPHB but has raised its target price by 22% to RM0.39 from RM0.32. The bank highlights HPPHB's improved order volume and higher paper product prices, along with new high-margin recyclable packaging products, as key factors for potential growth.
The bank's updated forecast reflects expectations for a recovery driven by increased orders and better margins, though it maintains its forecasts for FY25 while introducing figures for FY26. The new target price, based on an unchanged 13x price-to-earnings ratio (PER), acknowledges HPPHB's niche strength and strong client base despite the current challenges.
Investors should note that while HPPHB's short-term profitability remains inconsistent, the anticipated recovery in the E&E segment and the company's innovation in recyclable packaging could offer future upside. The bank's cautious optimism reflects the potential for improved performance and growth opportunities in the coming fiscal year.
HPP Holdings (HPPHB)公佈的24財年業績好於預期,儘管核心淨利潤同比下降了56%,主要原因是訂單疲軟和運營成本上升。儘管瓦楞包裝出現增長,但受非瓦楞包裝和硬盒表現不佳的影響,該公司的收入同比下降了15%。但是,電子和電氣(E&E)領域的復甦跡象表明,25財年可能會出現轉機。
Kenanga Investment Bank (Kenanga)維持HPPHB的市場表現評級,但已將其目標價格從0.32令吉上調了22%,至0.39令吉。該銀行強調,HPPHB的訂單量增加和紙製品價格的上漲,以及新的高利潤可回收包裝產品是潛在增長的關鍵因素。
該銀行的最新預測反映了對訂單增加和利潤率提高推動的復甦的預期,儘管它在公佈26財年的數據時維持了對25財年的預測。新的目標價格基於不變的13倍市盈率(PER),承認了儘管當前面臨挑戰,但HPPHB仍具有利基實力和強大的客戶群。
投資者應注意,儘管HPPHB的短期盈利能力仍然不穩定,但電子電氣板塊的預期復甦以及該公司在可回收包裝方面的創新可能會爲未來帶來上行空間。該銀行的謹慎樂觀情緒反映了下一財年業績改善和增長機會的潛力。