Moving forward, we believe the plastic packaging demand should remain robust amid Malaysia’s transition into endemic phase and reopening of business activities. Nevertheless, challenges remain given the volatile commodity price, supply chain disruptions and labour shortage issues. BPPLAS has been putting effort in recruiting and upskilling the talents, as well as optimising its production costs.

ELK’s hire purchase receivables stood at RM468.1m as at 4Q22, representing a 10.5% decrease from the previous corresponding quarter. Although Malaysia is transitioning into endemic phase and recovering economy bodes well for ELK’s hire purchase portfolio expansion, we reckon the expansion might be gradual as ELK remained cautious to preserve its asset quality. For the furniture segment, we foresee marginal growth in the near term with more work forces returning to office.

We note that the construction of the second jetty at Sapangar Bay Oil Terminal (SBOT) is on track for completion in 4Q22 in bid to ease the current congestion and reduce vessel waiting time. This move will boost the capacity to undertake additional port activities as current existing facilities are already accommodating approximately at 90.0% of total capacity.

Moving forward, MSC remains committed to improve their daily mining output level through further automation process as well as deploying new machineries to ramp up production efficiency. The move may see MSC hitting a production of 12 tonnes/day (from 11.5 tonnes/day at present).

As a fully integrated poultry farming company, TEOSENG enjoys economies of scale which enable the group to meet the rising demand for chicken eggs amid business resumption and gain market share from the local farmers. Nevertheless, we foresee the uncertainty over commodity prices which may prevail over FY22 on the back of inflation as well as the unresolved Russia-Ukraine tensions to post challenge to the group.

Moving forward, we reckon that the UHP segment will continue to anchor revenue contribution, being kept busy by multiple wafer fabrication works. Meanwhile, the general contracting segment will focus onto the relatively large-scale construction work that was secured last year at Sarawak, while the industrial gas segment will be kept busy with the gas supply scheme for one of the largest optoelectronics semiconductor companies located at Kulim, Kedah.

Moving forward, SLP will be targeting to bring its utilisation rate back to pre-Covid-19 levels, which is at around 75.0%. Local sales growth will be backed by the recovery in economic activities as the country entered into the endemic phase, while the Japanese market will be boosted by the upgrade of economic growth to +3.2% YoY (from +2.2% YoY) in 2022.

We gather that plants utilisation rate has recovered as production activity resume uninterrupted. Moving forward, we expect utilisation rate to hover at current levels for FY23f. We were also guided that ASP trend appears to have stabilised, which we expect current prices that is above pre-pandemic level to hold throughout FY23f.