KUALA LUMPUR (Jan 10): TA Securities has valued ACE Market-bound building support services provider KJTS Group Bhd at 13 times calendar year 2025 (CY2025) earnings per share (EPS), arriving at a fair value of 29 sen.
In a note on Wednesday, the research house, which does not have a rating on the stock, said that at an initial public offering price of 27 sen, KJTS is priced at a trailing price-earnings ratio of 27.1 times financial year 2022 (FY2022) core EPS.
It said the ongoing expansion in the construction industry is expected to sustain and create opportunities for operators like KJTS within the building support services sector.
TA Securities said it anticipates the group to record earnings growth of 14.1% to RM7.8 million for FY2023, 52.9% to RM12.0 million for FY2024, and 26.5% to RM15.2 million for FY2025.
The IPO involves the issuace of 218.03 million new ordinary shares, representing 31.69% of KJTS’s enlarged number of issued shares.
This includes a retail offering of 49.4 million new ordinary shares (7.18% of enlarged issued shares) and an institutional offering of 168.63 million new ordinary shares to institutional and selected investors (24.51% of enlarged issued shares).
“This growth is supported by its capex for an expansion plan to grow the cooling energy management services in the next three years,” it said.