- We reduce our target price (TP) by 6% and reiterate our BUY rating.

- Our lower TP is due to reducing our 2025-28F aggregate NPAT-MI projection of MWG’s ICT business by 9%. This is because we increase its G&A/sales in 2025-26F by 140 bps to 2%, which is relatively similar to the average level in 2018-21 to reflect higher-than-expected G&A staff costs in 2024. After a period of cost-control in 2022-23, MWG restored and increased its G&A staff costs in 2024.

- We lower our 2025F and 2026F NPAT-MI projections by 11%, as we reduce our NPAT-MI forecast for ICT in these years by 13%.

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