KUALA LUMPUR (Oct 22): Kenanga Investment Bank said THMY Holdings Bhd, a Malaysia-based automated test systems and fixtures solutions provider for the electrical and electronics industry, is one of Malaysia’s cheapest AI hardware play and worth almost double its initial public offering (IPO) price.
The stock is due to list on the ACE Market on Thursday, Oct 23.
Kenanga in a pre-listing note said at 31 sen a share, the IPO price represents a 28% discount to regional and local peers and a 41% discount to listed peers in the same space.
The research house values THMY at 60 sen per share, based on 30 times its projected earnings for the financial year ending March 31, 2026 (FY2026). This reflects a 20%-35% discount to regional and local peers due to its smaller size and modest earnings base.
The bullish stance follows that of Tradeview Research which projects that THMY may have an 81% upside from its listing price as its operations here and in Thailand, which account for more than 60% of the company’s revenue, benefit from the ‘China-plus-one’ strategy.
THMY provides complete test solutions, including in-circuit test and functional circuit test systems. It handles the full process — from design and development to fabrication, assembly, and on-site installation.
Kenanga expects THMY to benefit from growing demand for complex test systems driven by the AI hardware boom, hyperscaler infrastructure upgrades, and electronics manufacturing growth in Thailand.
As hardware becomes more advanced and updates happen faster, hyperscalers need new test tools for each version.
Meanwhile, Asean — especially Thailand — is seeing a surge in new printed circuit board factories as firms move production out of China. These trends support strong long-term growth of the board-level test industry.
It expects AI-related revenue to grow from low single digits now to 15%-20% of total revenue by FY2026-27. THMY’s revenue and profit are forecast to increase 40% and 48% in FY2026, driven by higher demand for complex test systems and growing orders from electronics manufacturing services customers in Thailand.
THMY’s top five customers are projected to contribute about 60% of revenue, showing strong but concentrated client exposure. For FY2025, the company recorded revenue of RM45.9 million and net profit of RM10 million, with its gross profit margin improving to 41.2%.
While THMY shows strong growth potential, Kenanga notes risks including heavy reliance on its top five customers, slower adoption of high-complexity test systems, and global electronics spending uncertainty.
The company aims to raise RM44.6 million through its IPO, with funds earmarked for a new factory (RM25.9 million), debt repayment, new machinery, and research and development. The new plant — expected by mid-2029 — will quadruple THMY’s test system capacity.