KUALA LUMPUR (Sept 19): Automotive components maker KHPT Holdings Bhd (KL:KHB), which launched its initial public offering (IPO) for the ACE Market of Bursa Malaysia, said the company will remain focused on serving domestic carmakers, namely Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) for the time being.

KHPT managing director Datin Eloise See said that this is due to significant market share held by both Proton and Perodua, accounting for 60% of the total industry volume (TIV) in Malaysia.

“For now, we still have a lot of opportunities [with Proton and Perodua’s TIV of 60% for the local market]. So that's why we are still focused on this [Malaysian market],” See told reporters after KHPT's prospectus launch.

The group has been an automotive parts and components supplier to Proton and Perodua for 29 years and 24 years respectively, through their Tier 1 suppliers and manufacturers.

In the IPO prospectus, KHPT noted that its business will continue growing in line with the local automotive manufacturers with the release of new upgraded vehicle models.

However, the company has not ruled out the possibility of expanding its customer base to other foreign carmakers in the future if such opportunities arise.

“But of course — when it comes to any other foreign OEMs (original equipment manufacturers), and they would like to work together with us, basically we are happy — definitely we are open for that,” See said.

Commenting on the rise of electric vehicles (EVs), See said the company is optimistic that its products will remain relevant for all car models.

She also shared that KHPT is currently collaborating with local carmakers in the EV space without elaborating on the details of the collaboration.

“No matter if the vehicle is [powered] by petrol, hybrid or EV, [there will always be a demand] for car seats, body structure, and adsorbents," she said in a press conference.

The company launched its initial public offering (IPO) on the ACE Market to raise an estimated RM29.37 million.

The IPO, priced at 20 sen per share, involves a public issue of 108.64 million new shares and an offer for sale of 38.23 million existing shares, according to its prospectus.

KHPT’s earnings per share (EPS) came in at 1.38 sen for the financial year ended Dec 31, 2023 (FY2023), based on its audited profit after tax of approximately RM5.53 million and enlarged share capital of 402.38 million shares upon listing. This translates into a price-to-earnings (P/E) multiple of 14.45 times at the offer price of 20 sen per share, according to the prospectus.

The automobile parts maker booked a one-off impairment loss of RM1.03 million on the non-current asset held for sale. Excluding the impairment loss, the company's profit after tax would have been RM6.56 million or 1.63 sen per share. Based on the adjusted EPS, KHPT shares would have been valued at a P/E of 12.26 times at 20 sen.

All in, the listing offers investors a 27% stake in the Selangor-based company.

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KHPT unveils ACE Market IPO prospectus to raise up to RM29 mil