RHB Investment Research Reports

Advancecon - Ceasing Coverage

rhbinvest
Publish date: Tue, 04 Jun 2024, 12:25 PM
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  • We are ceasing coverage on Advancecon due to a reallocation of internal resources. Our last call was SELL with a TP of MYR0.21.
  • 1Q24 results were underwhelming. ADVC reported a net loss of MYR14.5m (1Q23: +MYR0.2m), no thanks to the extension of time to complete the West Coast Expressway and East Coast Rail Link projects, which led to cost overruns. All segments were in the red except for the quarry business (PBT: MYR3.7m), which was due to one-off non-operating gains on the disposal of quarry assets amounting MYR4.6m – indicating an operational loss of MYR0.9m.
  • Ceasing coverage. Our most recent recommendation was SELL with a TP of MYR0.21 based on our SOP valuation. The TP had incorporated a 4% ESG discount, given its then ESG score of 2.6 vs the 3.0 country median.

Source: RHB Research - 4 Jun 2024

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