In 4QCY23, the aggregate reported earnings of FBM KLCI 30 current constituents came in at RM17.7b. It increased
sequentially at +1.2%qoq but dropped against the corresponding quarter last year at -26.8%yoy.
On adjusted basis, MIDF reports the aggregate 4QCY23 normalised earnings of FBM KLCI 30 current constituents dropped
sequentially at -7.4%qoq but increased on-year at +11.2%yoy to RM16.1b.
Within MIDFR’s Universe of clients, 21% of stocks under coverage reported higher than expected earnings. Moreover, 30%
posted earnings that were lower than expected versus 49% which came within expectations. Target price changes involved 40 upward adjustments and 15 downward adjustments. Furthermore, MIDF said it made 12 changes to its stock recommendations with 3 upgrades and 9 downgrades.
The aggregate FY2024 earnings forecast of the FBM KLCI constituents under our coverage was cut by -2.0% to RM65.8b. Likewise, the aggregate FY2024 earnings forecast of the stocks under MIDFR Universe was cut by -1.8% to RM83.5b. It is notable that the cuts were due to lumpy downward revisions to forward earnings of a few stocks.
Hence, the house said it maintains its end-2024 FBM KLCI, FBM Hijrah and FBM70 targets at 1,665 points, 13,450 points and
16,890 points respectively due to increasingly positive equity market sentiment engendered by the likelihood of US Fed rate cuts this year, and supported by undemanding equity valuations
