Equity Analysis /
Malaysia

MY : EITA Resources Bhd - M&A plans could serve as key catalyst

    Ahmad Kamarul Anwar Kamaruddin
    CGS-CIMB
    26 May 2022
    Published by

    EITA’s 1H9/22 core net profit made up 43% of our FY9/22F forecast. We expect its earnings to pick up in the next quarters with more business. The group said in a recent media interview that it is looking to bring its highly cash-generative maintenance business to a neighbouring country. Although EITA remains an Add, we cut our TP to 93 sen on the back of high input cost risks possibly plaguing its margins.