Weak demand weighs on plastic producer SLP

Kenanga Research said SLP's growth will likely be supported by its product mix.

PETALING JAYA: The global economic slowdown continues to weigh on the outlook for the plastic packaging industry and players are expected to see a muted second half of 2023 (2H23) despite 2H traditionally being the peak season.

Kenanga Research said SLP Resources Bhd’s growth will likely be supported by its product mix which focuses on high-margin, non-commoditised products such as kangaroo pouches and mono films, as well as its robust cash flows and a strong balance sheet with a net cash position, enabling consistent and generous dividend payments.