Investment Rating - The report assigns a "Buy" rating to the company with a target price of HK 0.95 [2][3]. Core Insights - The company's revenue for the third quarter of 2024 decreased by 16.9% year-on-year to RM 150 million, with a year-to-date decline of 5.9% [2][3]. - The medical business segment remains stable, generating approximately RM 78.964 million in revenue, benefiting from contributions from key clients [3]. - The report anticipates further growth in the medical segment due to increased penetration of automation solutions and initial contributions from single-use medical devices [3]. - The performance of other business segments is mixed, with the automotive segment recording approximately RM 32.612 million, which has negatively impacted the overall performance of the automation testing equipment segment [3]. - The gross profit margin is expected to recover, with a rebound from 28.1% in Q2 2024 to 28.8% in Q3 2024, driven by higher margins in the factory automation solutions segment [3]. Financial Summary - Total revenue projections for the company are as follows: RM 691.9 million in 2023, RM 651.2 million in 2024 (estimated decline of 5.9%), RM 735.0 million in 2025, and RM 806.2 million in 2026 [8]. - The net profit for 2024 is projected to be RM 117.7 million, with a year-on-year growth of 6.7% [8]. - The company’s gross profit is expected to be RM 209.6 million in 2025, with a gross margin of 30.3% [8]. - The report indicates a cautious outlook due to macroeconomic factors affecting growth potential [3].
槟杰科达：宏观因素仍为主要阻碍