RHB Investment Bank (RHB Research) has maintained a BUY rating on Texchem Resources Bhd after the firm reported a return to profitability for the second consecutive quarter, driven by strong performance across its polymer engineering and industrial divisions.
Furthermore, the appointment of the new Chief Executive Officer Dr Yuma Konishi is seen as pivotal in rejuvenating the company's operations and ensuring sustainable growth.
The current valuation of 7.1 times FY25F earnings is considered attractive, providing an entry point for investors looking to capitalise on Texchem Resources's diversified business model and potential for a sustained earnings recovery.
Looking ahead, the polymer engineering division is poised for further growth, particularly with the recovery in the hard disk drive and semiconductor sectors.
Texchem Resources's management anticipates that new high-margin projects will contribute to margin expansion and operational efficiency.
On that note, RHB Research has set a target price of RM1.44 for Texchem Resources, reflecting an anticipated upside of 60.9%.
