KUALA LUMPUR (April 1): Golden Destinations Group Bhd (GDGROUP), an outbound travel package curator en route to an ACE Market listing, has been assigned a fair value of 50 sen by Public Investment Bank, implying an 11.1% upside from its initial public offering (IPO) price of 45 sen.
In an IPO note on Wednesday, PublicInvest said the valuation was based on a 15 times price-earnings multiple pegged to GDGROUP’s forecast FY2027 earnings per share, reflecting a discount to the FTSE Bursa Malaysia Consumer Products Index to account for lower liquidity as an ACE Market stock.
The travel group, best known for its flagship Golden Destinations brand, operates primarily as a business-to-business outbound travel wholesaler, curating ready-to-sell overseas travel packages for a network of 848 licensed travel agents nationwide.
Unlike direct-to-consumer online travel platforms, GDGROUP focuses on product development and service delivery, while leveraging its extensive travel agent network for distribution. Its offerings span more than 2,500 travel packages and 293 cruise products across 84 countries.
PublicInvest noted that the group stands to benefit from structural growth in Malaysia’s outbound tourism sector, which has rebounded strongly following the pandemic. Total outbound tourism expenditure in Malaysia recovered to RM30.3 billion in 2024, supported by improving international mobility and rising disposable income.
Financially, GDGROUP posted revenue of RM592.4 million for FY2025, compared with RM157 million in FY2022, translating into a robust three-year compound annual growth rate of 55.7%.
The research house expects earnings to continue expanding, forecasting net profit to rise from RM27 million in FY2025 to RM34 million by FY2028, driven by stronger margins and regional expansion plans.
From the IPO proceeds of RM90 million, the largest portion, RM50 million, will be used to establish a new centralised headquarters in Kuala Lumpur, while RM13.5 million has been earmarked for branding and promotional activities.
The remainder will go towards expansion into Sarawak and Singapore, IT infrastructure upgrades, workforce expansion, and working capital.
PublicInvest said GDGROUP’s asset-light and variable cost structure provides resilience, as costs move in line with confirmed bookings, cushioning the impact of seasonal fluctuations and demand disruptions.
Still, it flagged key risks including exposure to geopolitical tensions, disease outbreaks, seasonal demand swings, and rising competition from online travel platforms and AI-powered trip planning tools.
GDGROUP is slated for listing on Bursa Malaysia’s ACE Market on April 16, with an enlarged market capitalisation of RM450 million based on the IPO price.