Higher Middle East exports to spur growth for Power Root

Power Root is expected to experience margin expansion on lower input costs, said CGS-CIMB Research.

PETALING JAYA: Power Root Bhd’s sales and net profit growth is expected to re-accelerate in the fourth quarter of financial year 2024 (4Q24) onwards premised on higher exports to the Middle East on restocking activities and higher sales contributions from Saudi Arabia as its new distributor ramps up sales initiatives.

The company will also undertake progressive price hikes across its Middle East markets (31.7% of first half of 2024 (1H24) until year 2025, CGS-CIMB Research noted in a report.