Thursday 20 Jun 2024
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KUALA LUMPUR (April 4): Hong Leong Investment Bank (HLIB) Research has valued CWG Holdings Bhd at 45 sen and said CWG's earnings have bottomed out and are poised for a strong rebound in the financial year 2023 (FY2023) to FY2024, given the easing freight rate and a less competitive landscape following the Covid-19 industry washout that has resulted in increased export sales.

In a note on Tuesday (April 4), the research house said that in the long run, CWG’s sales is envisaged to grow alongside the global literacy wave, with promising growth potentials in the Arab world, South Asia, and Sub-Saharan Africa, where adult literacy rates remain below the global average and are increasing at a faster pace.

“We are projecting CWG’s core net profit to grow at a strong [forecasted] FY2022-FY2024 CAGR (compound annual growth rate) of 59%.

“We value CWG at 45 sen based on 13.5 times price-earnings on forecasted FY2023 earnings,” it said.

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