Multico reported lower profit but positive new contract with Perodua

With last quarter lowered profit at RM 4.51 cents per quarter is around 13 times PE. But it may due to change of accounting practice has to adjust some profit and revenue have to be realized earlier.

However, positive Perodua 7 years contract announced giving us confidence for a better long term result. RM 90 announced as dividend together with previous dividend represent more than 6% total payout per year.

We continue recommend a hold of the counter.