TLG [OUTPERFORM +19.3%] - Sustained robust export sales to drive medium-term growth

- We raise our target price (TP) for TLG by 17% but reiterate our OUTPERFORM rating as the share price has surged by 22% over the past five months.

- Our higher TP is driven by 1) our 4% higher 2025-2029F aggregate NPAT-MI forecast, with respective increase of 4% in each year during the period, and 2) rolling our TP horizon forward to end-2025 from mid-2025.

- Our TP implies a 2025F P/E of 11.6x, broadly in line with TLG’s five-year average TTM P/E of 11.4x. We believe TLG deserves a valuation at least on par with its historical average, underpinned by sustained growth momentum. We project a 2023-2026F EPS CAGR of 22%.