SLP Resources - Initiating Coverage - Bursa RISE A defensive p | HLeBroking

SLP Resources - Initiating Coverage - Bursa RISE
A defensive play amid adversity

We initiate coverage on SLP with a BUY recommendation and TP of RM0.97 based on 14.5x P/E on FY23f EPS of 6.7sen. We favour the group’s strategy in developing more high-value added product which will result in margin expansion. Besides, we deemed the growing importance of “design for recycling” – which is expected to result in higher MDOPE sales to be a major catalyst in driving SLP’s earnings in the future. We forecast SLP’s FY21-24f PAT to grow at a CAGR of 12.6%. We deem SLP a good divvy name in current macroeconomic conditions considering its uninterrupted dividend track record.

Report: https://www.hlib.hongleong.com.my/Published/Download.ashx?ArticleId=19119&mode=view

Disclaimer: www.hlebroking.com/v3/disclaimer.asp