Stock Watch - HLIB Retail Research – 24 May Yew Lee Pacific G | HLeBroking

Stock Watch - HLIB Retail Research – 24 May

Yew Lee Pacific Group
An industrial brush specialist

Although Yew Lee has a material exposure to the glove sector (c.80% to FY21 revenue), we believe short term headwinds plaguing the industry has contained repercussion to Yew Lee’s bottomline, as expectations of inventory drawdown activities being at the tail-end should incentivize glove buyers to restock by 2H22. We are projecting FY21-23 core net profit CAGR of 8.6%, underpinned by higher margin customisable industrial brush sales to existing and potential new customers (Malaysia and overseas) from the semiconductor, glass making and agricultural sectors. We value Yew Lee at RM0.35/share (25% upside from IPO price), based on a P/E multiplier of 15.6x against FY23 EPS of 2.24sen.


Yew Lee Pacific Group有利工业
工业刷领域的佼佼者

尽管手套领域占据了Yew Lee 大部分收入（ 21 财年收入约 80% ），但我们认为该行业的短期逆风对 Yew Lee的影响将会大大减少，因为市场对库存减少的预期将使手套的买家在 2H22 之前补货。 我们预计 21-23 财年核心净利润复合年增长率为 8.6%，这得益于拥有更高利润的半导体、玻璃制造和农业领域的客户（马来西亚和海外）。 基于 15.6 倍的市盈率和 2.24 仙的 23 财年每股盈利，我们对Yew Lee的估值为 RM0.35 /股（上行空间25%）。

Full report link 完整报告链接: https://www.hlib.hongleong.com.my/Published/Download.ashx?ArticleId=18748&mode=view

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