Moving forward, we expect most branches’ performance will gradually return to pre-Covid-19 level. Meanwhile, the setup of its first satellite clinic in Taman Sutera located in Skudai, Johor, as well as the new ACC in Bahau, Negeri Sembilan is on schedule, aiming to start operation by September 2022. A surgeon who is currently based in Seremban ACC will be relocated to the new Bahau branch.

Given AME’s strong historical track record and their position as an integrated industrial property specialist, we reckon that AME will be able to replicate their success of i-Parks that are equipped with custom-built industrial properties and workers dormitories in Johor into their northern venture. This also marks the first step of AME’s geographical diversification into other states in Malaysia.

Cost wise, both soybean and maize prices continued its uptrend move QoQ, driven by the supply disruptions arising from Russia-Ukraine conflict, global fertiliser price hike as well as increased freight cost. The continued elevated feed price, coupled with the price control scheme have hit TEOSENG’s margin despite the cushion of egg subsidy from the government.

Moving forward, we expect demand for plastic packaging to remain robust amid reopening of global economies. Nevertheless, the industry may still face the challenges arising from global economic uncertainties, ongoing conflict between Russia and Ukraine that strains the supply chain, as well as the fluctuating commodities prices. Uncertainties remain with hurricane season right around the corner.

Moving forward, we expect the maintenance segment to anchor the overall performance, backed by multiple long term federal and state road concession agreements will provide earnings visibility till 2029. Nevertheless, the construction segment is also gathering pace, which bodes well for the group overall bottom line as the aforementioned segment was bleeding for the past 2 financial years.

Moving forward, KGB’s outstanding order book at approximately RM1.60bn represents an orderbook-to-cover ratio of 3.1x against FY21 revenue of RM514.6m will provide strong earnings visibility over the next 2 years. Meanwhile, tenderbook remains relatively healthy at around RM2.00bn, supported mainly from on-going wafer fabrication plants expansions of semiconductor players.

Blended ASP continues to decline, falling -12.6% QoQ. Moving forward, we were guided the stiff competition that resulted in the oversupply condition and inventories from previous stockpiling activities have yet to tapered. Thus, we expect this would continue to depress ASP, and we expect prices to remain soft throughout FY23f.

Local sales recovery will be anchored by the improvement in economic activities towards the year-end festive seasons. At the same time, SLP remains active in the adoption of automation and digitalisation process in bid tackle the shortage of workers issue and improve production efficiency. Nevertheless, the challenging operations scenario may keep margins in check in subsequent quarters ahead.