KUALA LUMPUR (Nov 6): PMW International Bhd, a concrete pole and pile manufacturer slated for listing on the ACE market on Nov 18, has been ascribed a fair value of 38 sen by Public Investment Bank.
This implies an 11.8% upside to its initial public offering (IPO) price of 34 sen per share.
The research house derived the valuation from a 15 times price-earnings multiple of forecast earnings for the financial year ending Dec 31, 2026 (FY2026).
"...representing a 20% discount to the Bursa Malaysia Industrial Products and Services Index’s price-earnings ratio of 19 times.
"The discount reflects the group’s relatively small market capitalisation and business scale, though this is partially offset by its impressive margins," said the house in a note on Thursday.
Further, PublicInvest expects PMW’s net profit to expand at a three-year compound annual growth rate of about 14%.
The fair value reflects the company's steady earnings outlook and healthy margin, underpinned by rising infrastructure demand and expanding utilities networks.
PMW manufactures prestressed spun concrete poles and piles mainly for the telecommunications, utilities and construction sectors, supported by in-house mould and machinery design capabilities.
It is also developing a new manufacturing facility in Tanjung Manis to tap into Sarawak’s RM5 billion development allocation for 2025.
PublicInvest forecasts revenue to rise from RM165.3 million in FY2024 to RM193.3 million in FY2026, while net profit may reach RM22.7 million, supported by the ongoing infrastructure and 5G network expansion which sustained demand for PMW’s products.
The IPO comprised 178.4 million new shares and 89.2 million shares for sale, raising RM60.7 million to fund the Sarawak facilities, working capital and listing expenses. Upon listing, PMW’s market capitalisation will stand at RM303.3 million.