KUALA LUMPUR (May 21): Automotive seat manufacturer Feytech Holdings Bhd (KL:FEYTECH) ended its maiden trading day on Bursa Malaysia's Main Market with a 37.5% gain on Tuesday.
Feytech opened at RM1.10, representing a premium of 30 sen or 37.5% over its initial public offering (IPO) price of 80 sen. It climbed as high as RM1.17, before paring gains to close at RM1.10, after some 148.25 million shares changed hands.
At RM1.10 per share, the company is valued at about 21.2 times its price-earnings ratio, based on a net profit of RM43.9 million and basic earnings per share of 5.2 sen for the financial year ended Dec 31, 2023 (FY2023).
At the current price, the group is valued at RM927.52 million, based on a share capital of 843.2 million.
Feytech is principally involved in the manufacturing of automotive seats and their covers, and other interior automotive parts, such as door ornaments, steering wheels, gear knobs, handbrake handles and consoles.
Its customers include Mazda Malaysia and Kia Malaysia, as well as Tier 1 automotive seat and interior part manufacturers, which serve automotive vehicle original equipment manufacturers.
Looking ahead, the company remains "very optimistic" about the automotive market, and said salary hikes for civil servants could offset the impact of the proposed subsidy rationalisation on the market.
For the first quarter ended March 31, 2024 (1QFY2024), Feytech posted a net profit of RM16.88 million, on the back of RM70.65 million in revenue, driven by sales in the automotive seats and cover segments.
In a research note on Tuesday, Rakuten Trade expects the company’s earnings to register a compound annual growth rate of 23%, on the back of significant growth in the automotive segment and new contract acquisitions.
Prior to its market debut, Feytech was oversubscribed by 15.6 times in its IPO, attracting RM561.09 million worth of orders from the Malaysian public.
TA Securities Holdings Bhd is the principal adviser and managing underwriter for the IPO. It is also a joint underwriter and joint placement agent, together with AmInvestment Bank Bhd.