TLG [OUTPERFORM +18.7%] - Robust export sales, gradual domestic recovery

- We maintain our OUTPERFORM rating for TLG despite raising our target price (TP) by 10%. TLG’s share price has increased 20% in the last five months.s

- Our higher TP is driven by higher projected NPAT-MI in 2024F/25F/26F by 6%/4%/4%, respectively, due to a higher projected GPM. Additionally, we roll our TP horizon to mid-2025.

- We increase our 2024F GPM forecast from 43.0% to 44.0%, reflecting a slight improvement from 43.7% in 2023, as new premium SKUs and higher operational efficiencies help offset increasing materials costs.