EvoLytix Insights Vault
Dive into our archive of market-moving news, company financial breakdowns, and contextual analysis. Understand how past events and data shape today’s valuations—and sharpen your long-term investment perspective.
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OPTIMAX HOLDINGS BERHAD
Optimax Eyes Regional Expansion Amid Record FY25 Profits
Optimax Holdings Bhd is poised for record profits in FY25, driven by its new ambulatory care centers (ACCs) in Petaling Jaya, Kota Kinabalu, and Cambodia. These centers, specializing in laser eye surgeries like Lasik and Presbyond, have already achieved breakeven or profitability, signaling strong demand. CGSI Research projects FY25 as a peak year but warns of moderated growth in FY26 due to higher costs from upcoming expansions into Selgate and Kempas Hospitals. Regional growth plans in Indonesia and Vietnam are underway, though start-up costs may weigh on FY26 earnings. Despite a 25% stock decline over the past year, the current valuation at 15.8x FY25 P/E appears attractive, with potential for sentiment recovery as earnings stabilize. ##### **Sentiment Analysis** ✅ **Positive Factors** - **Record FY25 Profits**: New ACCs are contributing significantly, with Atria Mall and Cambodia centers already breakeven. - **Strong Demand**: High-value procedures like Lasik and Presbyond are driving revenue. - **Regional Expansion**: Plans for Indonesia and Vietnam could unlock long-term growth. - **Attractive Valuation**: Trading at a discounted 15.8x FY25 P/E, offering upside potential. ⚠️ **Concerns/Risks** - **FY26 Cost Pressures**: Higher staff and depreciation costs from new hospitals may slow profit growth to 4.6%. - **Execution Risks**: Delays in expansion or longer gestation periods for new centers could dampen earnings. - **Sentiment Overhang**: Recent stock decline reflects investor skepticism despite positive outlook. **Rating**: ⭐⭐⭐⭐ --- ##### **Short-Term Reaction** 📈 **Factors Supporting Upside** - FY25 earnings beat expectations due to ACC profitability. - Potential re-rating if investor confidence rebounds. 📉 **Potential Downside Risks** - Near-term profit-taking after recent stock decline. - FY26 guidance uncertainty may limit short-term momentum. --- ##### **Long-Term Outlook** 🚀 **Bull Case Factors** - Successful regional expansion (Indonesia/Vietnam) mirrors Cambodia’s success. - Hospital ramp-up in FY27 could revive double-digit profit growth (11%). ⚠️ **Bear Case Factors** - Prolonged high costs from new hospitals squeeze margins. - Macro risks (currency volatility, regulatory hurdles) in new markets. --- ##### **Investor Insights** | **Aspect** | **Sentiment** | **Key Takeaways** | |------------------|---------------------------|----------------------------------------------------------------------------------| | **Sentiment** | Cautiously Optimistic | Strong FY25, but FY26 growth moderation priced in. | | **Short-Term** | Neutral to Positive | Earnings momentum may drive near-term rebound. | | **Long-Term** | Growth Potential | Expansion into ASEAN markets could yield dividends if executed well. | **Recommendations**: - **Growth Investors**: Accumulate on dips for FY27 upside. - **Value Investors**: Attractive P/E makes it a candidate for re-rating. - **Conservative Investors**: Monitor FY26 cost trends before committing.
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DAGANG NEXCHANGE BERHAD
DNeX Secures RM104m Government Contract for Digital Finance System
Dagang Nexchange Bhd (DNeX) has won a **RM103.76 million contract** from Malaysia’s Ministry of Finance (MoF) to maintain and enhance the **Integrated Government Financial and Management System (iGFMAS)**. The 60-month deal solidifies DNeX’s role as a key player in Malaysia’s public sector digital transformation, providing critical support for federal financial operations. The iGFMAS ensures transparent and efficient government fiscal management, leveraging DNeX’s expertise in digital solutions. CEO Faizal Sham Abu Mansor emphasized the contract’s significance in reinforcing the company’s strategic partnership with the government. This win boosts DNeX’s revenue visibility and aligns with Malaysia’s long-term digital agenda. Investors may view this as a stabilizing factor for DNeX’s financials, though execution risks remain. ##### **Sentiment Analysis** ✅ **Positive Factors**: - **Revenue Stability**: RM104m contract over 5 years provides predictable income. - **Strategic Positioning**: Reinforces DNeX’s role in national digital infrastructure. - **Government Trust**: MoF’s continued reliance signals credibility. ⚠️ **Concerns/Risks**: - **Execution Risk**: Long-term contracts may face delays or cost overruns. - **Dependency**: Heavy reliance on public-sector contracts could limit diversification. **Rating**: ⭐⭐⭐⭐ --- ##### **Short-Term Reaction** 📈 **Factors Supporting Upside**: - **Stock Momentum**: Positive news may trigger short-term buying interest. - **Earnings Clarity**: Contract details enhance financial visibility. 📉 **Potential Downside Risks**: - **Profit-Taking**: Share price could dip if investors cash in on the announcement. - **Market Sentiment**: Broader economic conditions may overshadow company-specific gains. --- ##### **Long-Term Outlook** 🚀 **Bull Case Factors**: - **Digital Expansion**: Potential for more government contracts as Malaysia accelerates digitalization. - **Sector Leadership**: DNeX could become a go-to provider for public-sector tech solutions. ⚠️ **Bear Case Factors**: - **Competition**: Rivals may challenge DNeX’s dominance in government contracts. - **Policy Shifts**: Changes in government priorities could reduce future opportunities. --- ##### **Investor Insights** | **Aspect** | **Sentiment** | **Key Takeaways** | |------------------|------------------------|----------------------------------------------------------------------------------| | **Sentiment** | ⭐⭐⭐⭐ (Positive) | Strong revenue visibility but execution risks persist. | | **Short-Term** | 📈 Neutral-Upside | Likely positive market reaction, though profit-taking may cap gains. | | **Long-Term** | 🚀 Cautiously Optimistic | Growth hinges on digitalization trends and contract execution. | **Recommendations**: - **Conservative Investors**: Monitor execution progress before committing. - **Growth Investors**: Consider DNeX as a play on Malaysia’s digital transformation. - **Traders**: Watch for short-term volatility around the news.
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MASTER TEC GROUP BERHAD
Master Tec Expands into Advanced Power Cables via YOFC Marine Partnership
Master Tec Group Bhd has signed an MoU with China’s YOFC Marine to collaborate on high-specification power cable solutions for Malaysia’s infrastructure market. The agreement grants Master Tec exclusive rights to promote and sell YOFC’s products domestically, with potential regional expansion. The partnership targets growing demand for submarine and transmission cables, aligning with Malaysia’s energy infrastructure upgrades. Master Tec’s CEO highlighted the strategic fit between the company’s growth goals and YOFC’s technical expertise. The stock closed at RM1.04, valuing the firm at RM1.06 billion. This move could position Master Tec as a key player in advanced cable systems, though execution risks remain. ##### **Sentiment Analysis** ✅ **Positive Factors** - **Strategic Partnership**: Access to YOFC’s advanced cable technology enhances Master Tec’s product portfolio. - **Market Expansion**: Exclusive rights in Malaysia and potential regional deals could drive revenue growth. - **Sector Tailwinds**: Rising demand for high-capacity power cables aligns with Malaysia’s infrastructure investments. ⚠️ **Concerns/Risks** - **Execution Risk**: Success depends on effective integration and market penetration. - **Competition**: Established players may challenge Master Tec’s entry into premium cable segments. - **Macro Risks**: Currency fluctuations or supply chain disruptions could impact margins. **Rating**: ⭐⭐⭐⭐ --- ##### **Short-Term Reaction** 📈 **Factors Supporting Upside** - Investor optimism from the MoU announcement may drive short-term stock momentum. - Potential contracts or follow-up announcements could further boost sentiment. 📉 **Potential Downside Risks** - Profit-taking after the news-driven rally. - Lack of immediate revenue impact may temper expectations. --- ##### **Long-Term Outlook** 🚀 **Bull Case Factors** - Master Tec becomes a dominant supplier for Malaysia’s power infrastructure projects. - Regional expansion leverages YOFC’s reputation to win cross-border contracts. ⚠️ **Bear Case Factors** - Delays in project rollouts or failure to secure major contracts. - Technological obsolescence or pricing pressures in the cable market. --- ##### **Investor Insights** | **Aspect** | **Sentiment** | **Key Takeaways** | |-------------------|---------------------------|--------------------------------------------| | **Sentiment** | Cautiously optimistic | Strong growth potential but execution-dependent. | | **Short-Term** | Neutral to positive | News-driven volatility likely. | | **Long-Term** | Positive with risks | Success hinges on market penetration. | **Recommendations**: - **Growth Investors**: Monitor contract wins and revenue traction. - **Value Investors**: Assess valuation post-rally; wait for clearer earnings visibility. - **Conservative Investors**: Watch for execution milestones before committing.
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GUOCOLAND (MALAYSIA) BERHAD
Guocoland Faces RM5.5M Hit After Arbitration Loss
Guocoland (Malaysia) Bhd (KL:GUOCO) reported a net financial impact of RM5.54 million following an arbitration loss tied to a disputed contract termination. The ruling requires its subsidiary, GLM Emerald Hills, to pay RM6.36 million to contractor Barisan Performa, including RM5.12 million for lost profits. While the subsidiary has provisioned RM1.24 million, the remaining liability could strain Guocoland’s finances, which already saw a 7.9% drop in 9MFY2025 net profit. The company is exploring legal options to challenge the award. Shares remained flat at 62.5 sen, reflecting muted market reaction, but the stock has declined 6% YTD amid broader operational challenges. ##### **Sentiment Analysis** ✅ **Positive Factors**: - **Provisioned Amount**: RM1.24 million already accounted for, mitigating part of the shock. - **FY2024 Growth**: Net profit surged to RM54.41 million (from RM34.6 million), showing resilience. ⚠️ **Concerns/Risks**: - **Cash Flow Pressure**: RM5.54 million net impact could tighten liquidity. - **Legal Uncertainty**: Potential costs if appeal fails. - **Weak YTD Performance**: Stock down 6%, reflecting investor caution. **Rating**: ⭐⭐ --- ##### **Short-Term Reaction** 📈 **Factors Supporting Upside**: - **Legal Appeal**: Successful challenge could reduce liability. - **Undervalued Potential**: Flat share price may attract bargain hunters. 📉 **Potential Downside Risks**: - **Sentiment Drag**: Negative headlines may deter short-term buyers. - **Earnings Pressure**: RM5.54 million hit could dent upcoming quarterly results. --- ##### **Long-Term Outlook** 🚀 **Bull Case Factors**: - **Strong FY2024 Base**: Prior profitability suggests recovery potential. - **Strategic Projects**: Future developments could offset current setbacks. ⚠️ **Bear Case Factors**: - **Contract Disputes**: Raises red flags about project management. - **Macro Risks**: Slowing revenue (-13.3% YoY) signals broader challenges. --- ##### **Investor Insights** | **Aspect** | **Sentiment** | |------------------|------------------------| | **Short-Term** | Neutral to Negative | | **Long-Term** | Cautiously Optimistic | **Recommendations**: - **Conservative Investors**: Avoid until legal clarity emerges. - **Value Investors**: Monitor for dips below 60 sen as a potential entry point. - **Traders**: Watch for volatility around appeal updates.
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UWC BERHAD
UWC Poised for Growth Amid Rising Semiconductor Demand
The article highlights UWC Bhd's promising outlook, driven by increasing demand for front-end semiconductor equipment. Hong Leong Investment Bank Research (HLIB) projects that front-end equipment will contribute 43% of UWC's revenue by FY27, up from 34% in FY25, supported by margin recovery from improved production yields and potential tax benefits. HLIB maintains a "buy" rating with a target price of RM2.78, citing UWC's diversified exposure to semiconductors, life sciences, and medical technology. The company's growth is tied to broader semiconductor industry trends, positioning it as a key player in tech manufacturing. ##### **Sentiment Analysis** ✅ **Positive Factors** - **Revenue Growth**: Front-end semiconductor equipment expected to drive 43% of revenue by FY27 (up from 34% in FY25). - **Margin Recovery**: Improved yields and potential tax benefits from Malaysian Investment Development Authority (MIDA) pioneer status. - **Diversified Exposure**: UWC operates in high-growth sectors like semiconductors, life sciences, and medical tech. - **Strong Analyst Support**: HLIB maintains a "buy" call with a RM2.78 target price. ⚠️ **Concerns/Risks** - **Execution Risk**: Revenue growth depends on successful scaling of front-end equipment production. - **Macro Risks**: Semiconductor demand could soften if global economic conditions worsen. - **Regulatory Uncertainty**: MIDA tax benefits are not yet guaranteed. **Rating**: ⭐⭐⭐⭐ --- ##### **Short-Term Reaction** 📈 **Factors Supporting Upside** - Positive market sentiment around semiconductor stocks. - HLIB's "buy" rating could attract investor interest. - Strong quarterly results may validate margin improvement. 📉 **Potential Downside Risks** - Short-term profit-taking if the stock rallies too quickly. - Any delays in front-end equipment adoption could dampen sentiment. --- ##### **Long-Term Outlook** 🚀 **Bull Case Factors** - Semiconductor industry tailwinds support sustained revenue growth. - Diversification into life sciences and medical tech reduces reliance on one sector. - Potential for higher margins from operational efficiencies. ⚠️ **Bear Case Factors** - Intense competition in semiconductor manufacturing could pressure margins. - Economic downturns may reduce tech spending, impacting demand. --- ##### **Investor Insights** | **Aspect** | **Sentiment** | |------------------|--------------------| | **Short-Term** | Cautiously Optimistic | | **Long-Term** | Bullish with Risks | **Recommendations:** - **Growth Investors**: Attractive due to semiconductor exposure and revenue upside. - **Value Investors**: Monitor margin improvements and tax benefits for confirmation. - **Conservative Investors**: Wait for clearer execution signals before committing.
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SUPERMAX CORPORATION BERHAD
Supermax Corp’s 75% Plunge: A Cautionary Tale for Medical Equipment Investors
Supermax Corporation Berhad (KLSE:SUPERMX) has delivered dismal returns, with investors losing 75% over five years and 24% in the past year alone. The stock’s recent 11% weekly drop compounds its struggles, driven by a 37% annual revenue decline since 2020. While CEO remuneration is modest, the lack of profitability and shrinking top-line growth signal deep challenges. Dividends have slightly cushioned losses, but the broader market downturn (-7.5%) pales compared to Supermax’s underperformance. With no clear turnaround catalysts, long-term holders face a 12% annualized loss, raising questions about the company’s viability in a competitive medical equipment sector. ##### **Sentiment Analysis** ✅ **Positive Factors**: - **Modest CEO pay**: Aligns with cost-conscious governance. - **Dividend history**: Partial mitigation of share price losses via TSR (-75% vs. -80% price drop). ⚠️ **Concerns/Risks**: - **Revenue collapse**: 37% annual decline over five years. - **Persistent losses**: Lack of profitability undermines investor confidence. - **Market underperformance**: -24% yearly return vs. -7.5% broader market. **Rating**: ⭐⭐ --- ##### **Short-Term Reaction** 📈 **Factors Supporting Upside**: - **Oversold conditions**: 20% drop in 90 days may attract speculative buyers. - **Sector sentiment**: Any positive medical equipment news could spur volatility. 📉 **Potential Downside Risks**: - **Liquidity crunch**: Continued revenue declines may strain finances. - **Investor flight**: Further sell-offs if no turnaround plan emerges. --- ##### **Long-Term Outlook** 🚀 **Bull Case Factors**: - **Operational restructuring**: Potential cost-cutting or strategic pivots. - **Market recovery**: Sector-wide rebound could lift sentiment. ⚠️ **Bear Case Factors**: - **Irreversible decline**: Revenue shrinkage may reflect structural issues. - **Competitive pressures**: Medical equipment sector challenges persist. --- ##### **Investor Insights** | **Aspect** | **Sentiment** | **Key Takeaways** | |------------------|------------------------|--------------------------------------------| | **Sentiment** | ⭐⭐ (Negative) | High risk due to revenue collapse. | | **Short-Term** | Neutral to Bearish | Volatility likely; no clear catalysts. | | **Long-Term** | Bearish | Structural challenges dominate. | **Recommendations**: - **Risk-averse investors**: Avoid; prioritize stable revenue stocks. - **Speculative traders**: Monitor for oversold bounces, but set tight stop-losses. - **Long-term holders**: Reassess fundamentals; exit if no turnaround plan materializes.
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SCIENTEX BERHAD
Scientex Q3 Earnings Dip Amid Export Weakness, Property Offsets Losses
Scientex Bhd reported a 5.1% decline in net profit to RM123.87 million in Q3 2025, attributed to softer export sales and unfavorable forex movements in its packaging division. Revenue remained stable at RM1.11 billion, supported by growth in the property segment, which partially offset the 6.4% drop in packaging revenue. Operating profit fell sharply to RM34.5 million from RM58.4 million year-on-year, reflecting margin pressures. Despite challenges, the company declared a six sen interim dividend, signaling confidence in cash flow stability. For the nine-month period, net profit dipped 8% to RM376.42 million, though revenue edged up marginally to RM3.33 billion. ##### **Sentiment Analysis** ✅ **Positive Factors**: - **Property segment resilience**: Mitigated packaging declines, showcasing diversification benefits. - **Dividend continuity**: Interim payout of six sen reflects stable liquidity. - **Revenue stability**: Flat y-o-y revenue despite export headwinds. ⚠️ **Concerns/Risks**: - **Export weakness**: Packaging revenue dropped 6.4% due to global demand softness. - **Forex volatility**: Unfavorable currency movements squeezed margins. - **Operating profit slump**: 41% decline signals cost inefficiencies. **Rating**: ⭐⭐⭐ --- ##### **Short-Term Reaction** 📈 **Factors Supporting Upside**: - Dividend announcement may attract income-focused investors. - Property segment’s outperformance could buoy sentiment. 📉 **Potential Downside Risks**: - Market may penalize weak operating leverage. - Export-dependent segments remain vulnerable to macro uncertainty. --- ##### **Long-Term Outlook** 🚀 **Bull Case Factors**: - Diversification into property reduces cyclical risks. - Potential forex stabilization and export recovery. ⚠️ **Bear Case Factors**: - Prolonged global demand slump for packaging. - Rising input costs pressuring margins further. --- ##### **Investor Insights** | **Aspect** | **Sentiment** | **Key Drivers** | |------------------|-----------------------|------------------------------------------| | **Short-Term** | Neutral-to-negative | Dividend support vs. profit decline | | **Long-Term** | Cautiously optimistic | Diversification vs. macro risks | **Recommendations**: - **Income Investors**: Hold for dividends, but monitor export trends. - **Growth Investors**: Await clearer signs of packaging recovery. - **Value Investors**: Assess property segment’s sustainability.
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PUBLIC BANK BERHAD
PPB Group Faces Higher Risk Premium Amid Wilmar Legal Woes in Indonesia
PPB Group Bhd’s risk profile has escalated after its key associate, Wilmar International, was charged by Indonesia’s Attorney General’s Office (AGO) over alleged corruption. Wilmar denied wrongdoing but posted a $729 million security deposit pending a Supreme Court decision. Kenanga Research downgraded PPB’s target price to RM10.50 (from RM15) and cut its rating to "market perform," citing heightened risk premiums due to Indonesia contributing ~10% of PPB’s business. While FY25/26 earnings forecasts remain unchanged, the legal overhang and potential reputational damage could weigh on investor sentiment. The case stems from 2023 allegations of palm oil export restriction violations, with Wilmar previously acquitted before judges and lawyers were arrested in a related probe. ##### **Sentiment Analysis** ✅ **Positive Factors**: - PPB’s earnings forecasts (FY25/26) are maintained, indicating underlying business resilience. - Wilmar’s denial and legal defense may mitigate long-term reputational harm. ⚠️ **Concerns/Risks**: - Legal uncertainty raises PPB’s risk premium, pressuring valuations. - Indonesia accounts for 10% of PPB’s business, exposing it to regulatory and operational disruptions. - Potential fines or prolonged court battles could strain Wilmar’s liquidity. **Rating**: ⭐⭐ (Negative near-term outlook due to legal risks) --- ##### **Short-Term Reaction** 📈 **Factors Supporting Upside**: - Market may price in a swift resolution if Wilmar’s defense gains traction. - Commodity price rebounds (e.g., palm oil) could offset sentiment drag. 📉 **Potential Downside Risks**: - Further legal escalations or adverse court rulings. - Investor flight from high-risk assets linked to Indonesia. --- ##### **Long-Term Outlook** 🚀 **Bull Case Factors**: - Wilmar’s acquittal could restore confidence and reduce risk premiums. - PPB’s diversified portfolio (e.g., consumer goods, grains) may cushion sector-specific shocks. ⚠️ **Bear Case Factors**: - Prolonged legal battles eroding Wilmar’s profitability and PPB’s dividends. - Stricter Indonesian regulations impacting palm oil operations. --- ##### **Investor Insights** | **Aspect** | **Sentiment** | **Key Drivers** | |------------------|------------------------|---------------------------------------------------------------------------------| | **Short-Term** | Negative | Legal overhang, target price downgrade, risk premium expansion. | | **Long-Term** | Cautious Neutral | Wilmar’s resilience, PPB’s diversification, but regulatory/legal uncertainties. | **Recommendations**: - **Conservative Investors**: Avoid until legal clarity emerges. - **Risk-Tolerant Investors**: Monitor for dips as a potential entry point if Wilmar’s defense strengthens. - **Dividend Seekers**: Assess PPB’s payout sustainability if Wilmar’s cash flows are impacted.
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KPJ HEALTHCARE BERHAD
KPJ Healthcare’s Strategic Upgrades: Long-Term Gains, Near-Term Neutrality
MIDF Research maintains a NEUTRAL rating on KPJ Healthcare (TP: RM3.00) despite its RM31.97 million hospital upgrades, citing limited near-term earnings impact. The renovations at Damansara Specialist Hospital 2 (DSH2) and KPJ Damansara aim to boost bed capacity, brand image, and patient flow, aligning with Strategic Planning 2025. While these projects address growing demand and service quality, MIDF cautions against execution delays, which could disrupt operations and inflate costs. KPJ’s shares remain steady due to sustained healthcare demand, but short-term catalysts are lacking. The research house emphasizes reassessing earnings visibility once operational improvements materialize. ##### **Sentiment Analysis** ✅ **Positive Factors** - **Strategic Alignment**: Upgrades support long-term growth via increased capacity and premium services. - **Brand Enhancement**: Facelifts at DSH could improve corporate positioning and patient experience. - **Demand Resilience**: Private healthcare demand remains robust, supporting KPJ’s revenue stability. ⚠️ **Concerns/Risks** - **Execution Risks**: Delays or cost overruns could hurt financials and operations. - **Near-Term Neutrality**: Upgrades unlikely to immediately lift earnings, per MIDF. - **Limited Catalysts**: No short-term drivers for significant share price upside. **Rating**: ⭐⭐⭐ --- ##### **Short-Term Reaction** 📈 **Factors Supporting Upside** - Steady investor interest in healthcare stocks amid stable demand. - Successful project completion could boost sentiment. 📉 **Potential Downside Risks** - Operational disruptions from renovation delays. - Margin pressures if costs exceed budgets. --- ##### **Long-Term Outlook** 🚀 **Bull Case Factors** - Upgrades may attract higher-paying patients, lifting margins. - Strategic 2025 plan could solidify KPJ’s market leadership. ⚠️ **Bear Case Factors** - Slower-than-expected ROI on renovations. - Intensifying competition in private healthcare. --- ##### **Investor Insights** | **Aspect** | **Sentiment** | |------------------|-----------------------------| | **Short-Term** | Neutral (execution-dependent)| | **Long-Term** | Cautiously optimistic | **Recommendations**: - **Conservative Investors**: Hold; await clearer earnings traction. - **Growth Investors**: Monitor post-renovation patient volume and margin trends. - **Traders**: Watch for short-term volatility around project milestones.
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