KUALA LUMPUR: CGS-CIMB Research has upgraded the packaging sector to “overweight” from “neutral” due to the rising demand for plastic packaging products, driven by stay-at-home orders.
The research house predicts the packaging sector’s core net profit to be 12.5%, and compounded annual growth rate to be 8.7% for calender year 2020 to 2022, driven by upcoming capacity expansions.
“The packaging companies’ pivot towards high-margin products will help the bottom line accelerate further than their turnovers. Malaysia’s packaging sector is striding along well in this Covid-19-induced recession, ” it said.
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