PT RESOURCES HOLDINGS BERHAD (IPO Note) Recommendation : Subscribe IPO Price : MYR 0.36 Fair Value : MYR 0.54 Key Points: • PT Resources revenue CAGR was at 44.2% annually, mainly attributable to its processing and trading of frozen seafood products to overseas markets that saw sizeable increase in export sales to Saudi Arabia and China. • The IPO proceeds of MYR48.6 million will mainly be utilised for its working capital (55.9%), capex for new cold storage warehouses (36.3%), and the remaining for the listing expenses. This will increase the facility capacity to 4,000 tonnes from 700 tonnes. • Moving forward, the Group expects to grow export sales at a faster pace as compared to local sales and continue to generate more than 50% of revenue from the processing and trading of frozen seafood segments. The purchases of raw materials would also remain the main component of the total cost. • We believe demand for seafood would remain resilient, as part of essential products and supported by growing consumption in its overseas markets. We have a SUBSCRIBE recommendation on PT Resources with a target price of MYR0.54 and a target multiple of 10.8x (based on the enlarged issued share capital of 535,020,000), which represents a 12-month potential return of 50%. The indicative IPO price of MYR0.36 is based on PE Multiple of 6.8 and existing issued share capital of 400,020,000 shares).
Actually it worth rm 1 plus base on valuation.but market average so 50 percent discount 50 cents range.30 percent discount 70 cents range.risk less reward morem
Bought @0.395. This one consumer defensive, a bit slow the Bull! #2/3 weeks:-) The "E" n "G" is Volatile; so PE, PEG; just a general guidelines. So #10X PE is reasonable or Fair :-)
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ipo 0.360