Power Root's Struggles Continues: CGS
Power Root's Struggles Continues: CGS
PWRT has been downgraded from ADD, with the TP lowered to RM1.45 from RM2.20. The stock's current price reflects a reasonable valuation, trading at a 13x price-to-earnings (P/E) multiple for calendar year 2026, below its 10-year historical average. While local revenue growth remains strong, analysts are cautious about the mid-term recovery, especially in overseas markets. Upside risks include a faster-than-expected recovery in the Middle East and lower operating costs, while downside risks revolve around weaker sales and continued pressure on margins from elevated input costs.Power Root Bhd (PWRT) is facing continued challenges despite a recovery in local sales, with analysts offering mixed views on its outlook. CGSI Stock Broking House downgrades the company's performance to HOLD which cut its target price (TP) by 34% to RM1.45. This downgrade reflects concerns over PWRT's ongoing struggles in the Middle East and higher-than-expected input costs, leading to a weaker earnings recovery. The stock is currently rated as a 'Hold' by most analysts, citing uncertainty over its overseas performance.
儘管本地銷售有所回升，但Power Root Bhd（PWRT）仍面臨持續的挑戰，分析師對其前景的看法不一。CGSI股票經紀公司將該公司的業績評級下調至持有，將目標價格（TP）下調了34％，至1.45令吉。此次降級反映了對PWRT在中東的持續困境以及投入成本高於預期的擔憂，這導致盈利復甦疲軟。該股目前被大多數分析師評爲 「持有」，理由是其海外表現存在不確定性。
Following the company's first-quarter FY2025 briefing, analysts have reduced their core earnings per share (EPS) estimates for FY2025 and FY2026 by 14.7% and 15.8% respectively. This is due to the sluggish performance in the Middle Eastern market, compounded by rising raw material and labour costs. While local sales are expected to grow, export markets, especially the Middle East, remain a concern, with projections indicating flat sales for FY2025 despite price adjustments. The company has secured raw material pricing through August 2025, but costs remain elevated compared to historical levels. Nonetheless, PWRT is expected to achieve an 8% compound annual growth rate (CAGR) in EPS over FY2024-2027, driven primarily by strong domestic revenue growth and stabilising input costs.
繼該公司第一季度 FY2025 簡報會之後，分析師將 FY2025 和 FY2026 的核心每股收益（EPS）預期分別下調了14.7％和15.8％。這是由於中東市場表現疲軟，再加上原材料和勞動力成本的上漲。儘管預計本地銷售將增長，但出口市場，尤其是中東，仍然令人擔憂，預計儘管價格進行了調整，但FY2025 的銷售額持平。該公司已確保到2025年8月的原材料定價，但成本與歷史水平相比仍然很高。儘管如此，預計pWrT的每股收益將比FY2024-2027 實現8％的複合年增長率（CAGR），這主要是由強勁的國內收入增長和穩定的投入成本推動的。
Malaysia's economic outlook for 2024 is more optimistic, with forecast GDP growth of 5.2% and private consumption growth of 6.9%. Factors such as flexible EPF withdrawals, upcoming civil servant salary increases, and higher cash handouts to low-income households are expected to boost local demand for PWRT's products. These positive local trends may offset some of the challenges in its export markets.
馬來西亞2024年的經濟前景更爲樂觀，預計國內生產總值增長5.2％，私人消費增長6.9％。靈活的公積金提款、即將到來的公務員加薪以及向低收入家庭發放的更多現金補助等因素預計將提振當地對PWRT產品的需求。這些積極的當地趨勢可能會抵消其出口市場的一些挑戰。
PWRT has been downgraded from ADD, with the TP lowered to RM1.45 from RM2.20. The stock's current price reflects a reasonable valuation, trading at a 13x price-to-earnings (P/E) multiple for calendar year 2026, below its 10-year historical average. While local revenue growth remains strong, analysts are cautious about the mid-term recovery, especially in overseas markets. Upside risks include a faster-than-expected recovery in the Middle East and lower operating costs, while downside risks revolve around weaker sales and continued pressure on margins from elevated input costs.
pWrT的評級已從ADD下調，目標價從2.20令吉下調至1.45令吉。該股的當前價格反映了合理的估值，2026日曆年的市盈率（P/E）倍數爲13倍，低於其10年曆史平均水平。儘管當地收入增長仍然強勁，但分析師對中期復甦持謹慎態度，尤其是在海外市場。上行風險包括中東復甦快於預期和運營成本降低，而下行風險則圍繞着銷售疲軟以及投入成本上漲對利潤率的持續壓力。
譯文內容由第三人軟體翻譯。