Magni-Tech (Magni)’s 3QFY24 core net profit surged by 58.2% YoY to RM39.1m, on higher sales orders from the garment manufacturing segment. Cumulative 9MFY24 core net profit of RM89.2m was above expectations, accounting for 84% of our full-year estimates. The discrepancy in our forecast was mainly due to the stronger-than-expected sales from the garment segment. We adjust our forecast for FY24-26F higher by 8-11%, as we raise our sales assumptions to factor in robust sportswear demand. We believe that consumers focus on health and active lifestyles will remain the key growth driver for global consumption of sportswear. Additionally, we view Magni’s current valuation as attractive, given that it is trading below its average 5-year PER of 8x (see figure 1). Following our earnings adjustment, our TP for Magni is revised higher to RM2.50. We reiterate our Outperform call on Magni.
Source: PublicInvest Research - 19 Mar 2024
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Created by PublicInvest | Nov 12, 2024