KUALA LUMPUR (Sept 8): Camaroe Bhd is already fairly valued at its listing price, TA Securities said while flagging a pause in orders from one of the prawn farmer’s major customers.
Revenue could decline slightly to RM39.3 million this year due to the absence of sales to an unnamed customer that accounted for about 17% of sales following changes in food labelling standards in South Korea, the research house said in a non-rated initial public offering (IPO) note.
Sales could still catch up in the second half of 2025 supported by major orders and seasonal demand in the fourth quarter while cost control efforts will keep earnings stable, the house said.
TA Securities is forecasting a net profit growth of 9.5% in 2026 and 11.3% in 2027, supported by expansion in sales volume as well as stronger average selling prices.
Following the note's publication, Camaroe said the “slight dip” in January-March sales was due to the customer putting its orders on hold during the “transition period” following the policy change in South Korea.
“We wish to re-emphasise that this is a short-term situation,” the company said in a statement to The Edge. “Sales are expected to normalise in the second half of 2025 once the regulatory transition is complete” with the affected customer resuming orders, Camaroe added.
Applications for the IPO will close on Sept 12, and listing has been scheduled for Oct 2.
Camaroe, founded in 2009, currently owns 138 ponds across five coastal prawn farms and a processing facility in Kapar, Selangor. The company made a net profit of RM7.75 million for the year ended March 31, 2025 on revenue of RM39.82 million.
The company mainly processes live and frozen black tiger prawns, both head-on shell-on and peeled, to be distributed to local wholesalers as well as international buyers across China, South Korea and Taiwan.
TA Securities is valuing Camaroe at 14 sen, the same as its IPO price, at about eight times its estimated 2026 earnings of about RM8.8 million.
The house said Camaroe would have to be valued at a 40% discount to its regional peers’ average earnings multiple of about 14 times to account for its smaller market capitalisation, noting that its direct peers in Malaysia are privately held or not covered by analysts.