Given that the reported earnings came in above our expectation, we revised the forecasted earnings higher by 31%, 23% and 17% to 50.6m, RM52.4 and RM54.6m respectively for FY24-26f. The revised forecast will account for improved margins in the filing division due to favourable forex conditions as well as improved cost management for the group.

Hence, we maintain the BUY recommendation on ASIAFLE, with a revised target price of RM2.60 (from RM1.98), representing an upside of 38.3%. The target price is derived by ascribing a P/E of 10.0x to FY24f EPS of 26.0 sen. Also, we like the group’s net cash position of RM277.6m as at 1QFY24.