In fiscal year 2023, Benjie Keda (01665.HK) achieved total revenue of approximately RM690 million, an increase of 15.2% year over year. Its net profit increased by about 6.7% compared to the same period last year, which is in line with our expectations. The automotive business segment continued to be the Group's main contributing business, accounting for approximately 47.6% of the Group's total revenue, while the Medical Business Division increased sharply by 75.2% year on year to RM150 million. Thanks to the growth of the Healthcare Business Division Factory Automation Solution (FAS), the Group's gross margin increased to 31.9% in the fourth quarter, driving the annual gross margin and net profit ratio back to 30.3% and 20.6%.

Strong expression of the medical division: Benjie Keda (01665.HK) continued to deliver quite good results. Among them, the contribution of the medical business division was particularly remarkable. The visibility of orders from important customers remained clear, which became the main driving force for the group. Based on the Group's on-hand orders, the Healthcare Business Division is expected to maintain strong growth this year. At the same time, based on the latest expansion plans from major customers, we expect the Healthcare Business Division to maintain ideal results for the next two years. Contributions from some of these major customers are still the main source of revenue for this business segment, and the revenue contribution of single-use medical devices will gradually be realized after the completion of Phase I and Phase II of Plant III.

Other business segments expressed mixed statements: Affected by headwinds in the automobile industry, orders from automobile industry customers were slightly delayed, leading to a slight stall in the growth of orders placed by Benjiekoda (01665.HK), which declined for two consecutive quarters. We believe that short-term fluctuations will not change the long-term growth direction of electric vehicles and autonomous driving, but we are still waiting for more evidence to confirm the completion of short-term adjustments. Furthermore, the Group has maintained steady growth in the semiconductor business segment, and we anticipate that the electronics business segment will remain weak due to the suspension of the mobile phone market. We continue to regard the current expression in the mobile phone market as a short-term rebound.

The progress of Plant III has been slightly adjusted: Benjie Keda (01665.HK) proposed adjustments to the progress of Plant 3. Previously, it was estimated that Phase I and Phase II would be put into operation separately in the fourth quarter of 2024 and the third quarter of 2025. The latest adjustment is that Phase I and Phase II will be fully put into operation simultaneously in the first quarter of 2025, while production will gradually begin in the third quarter of 2024.

The Healthcare Business Division provided support at a critical time: We estimated the profit of Benjie Keda (01665.HK) by approximately 10% and lowered the target price to HK$1.18 per share to reflect the uncertainty experienced by the automotive business division, which is the main source of revenue.

However, the visibility of the medical business division remains clear. We anticipate that the medical business division will be the main growth engine for the Group this year, partly offsetting the effects of the growth and relaxation of the automobile business division. So we keep the group? buy? Ratings and future orders are also one of our main concerns.