Strategy Note /

MY : Strategy - 4Q beats mean higher bars set for 2021F

    Ivy Ng Lee
    Ivy Ng Lee

    Head of Malaysia Research, Regional Head of Agribusiness

    2 April 2021
    Published byCGS-CIMB

    The ratio of outperformers improved significantly; 4Q20 earnings rebounded thanks to higher commodity prices and improved sales. We revised our 2021F/2022F KLCI earnings growth to +37.5%/-1.6% (from +37%/ -0.5%), post 4Q results season. We cut our 2021 year-end KLCI target to 1,699 pts (from 1,759 pts) as we price the market at 1 s.d. discount to mean P/E to reflect political uncertainty.