KUALA LUMPUR (July 10): Apex Research has valued MyMBN Bhd at fair value of 30 sen based on MyMBN’s FY24f EPS of 1.9 sen and a 10% premium on the Bursa’s Consumer Products and Services Index 2024 forward PER of 16.2x.

MyMBN is principally involved in the processing and sale of edible bird’s nests (EBN), specifically raw unclean edible bird’s nests (RUCEBN).

In a note on Monday (July 10), the research house said it was optimistic about the recovery of China’s demand and MyMBN being one of the market leaders of exporting RUCEBN.

It said the target price represents a 42.9% potential upside from its initial public offering (IPO) price of 21 sen.

Apex Research said China is the largest edible bird’s nest (EBN) consumer globally, accounting for over 60% of total production.

However, it said demand from China has been hindered due to the zero-Covid policy but it’s expected to recover strongly when China’s economy bounces back.

“Malaysia is a significant EBN producer in Southeast Asia and is the only country recognised by the People’s Republic of China (PRC) for exporting RUCEBN.

“MyMBN is currently one of the only three approved suppliers of RUCEBN to China.

“We believe MyMBN’s earnings are able to leverage China's revival of spending appetite as 99% of the Group’s revenue comes from China for the past three years,” it said.

MyMBN will be listed on the ACE Market of Bursa Malaysia Securities Bhd on July 25, 2023.