KUALA LUMPUR (April 3): TA Securities has assigned a target price-earnings (PE) multiple of 12 times to ACE Market-bound total surface decorative products company Topmix Bhd and arrived at a fair value of 36 sen.
In a note on Wednesday, the research house, which does not have a rating on the stock, said there is no listed company from Bursa Malaysia that is directly comparable with Topmix.
“Nevertheless, we use Synergy House Bhd, a furniture player that mainly focuses on the design, development and sale of ready-to-assemble furniture, for peer comparison,” TA Securities said.
The research house said it estimates the group to record earnings growths of 4.5% to RM8.4 million for FY2023, 16.7% to RM9.8 million for FY2024 and 21.0% to RM11.8 million for FY2025, supported by a better industry outlook according to the independent market research report as well as better margins.
“We expect the domestic market will remain as the primary revenue generator,” it added.
Applications for the initial public offering (IPO) will close on April 4, while the listing is set for April 23.
M&A Securities serves as the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise.