Golden Destinations a little overvalued at IPO price amid Middle East tensions

Thursday 08 Oct 2026

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KUALA LUMPUR (April 3): Golden Destinations Group Bhd, a tourism company en route to the ACE Market, is a little overvalued at its listing price amid Middle East tensions, according to TA Securities.

The stock’s fair value is 42 sen compared to its initial public offering (IPO) price of 45 sen per share, according to the research house. Earnings growth for 2026 will likely be flat as clients defer travels or shift towards Southeast Asia, which typically carries lower average selling prices, TA Securities noted.

Growth, however, will rebound in 2027 as bookings and demand recover, TA Securities said.

Application for the IPO is open until April 6. The listing date is targeted for April 16.

Golden Destinations mainly operates within the business-to-business space, serving a network of licensed travel agents rather than selling its products and services directly to end-consumers.

The company curates travel and cruise packages distributed through a network of over 800 travel agents across Malaysia, as well as provides standalone travel support services such as flight ticketing services. The IPO price values Golden Destinations at nearly 16 times its trailing earnings.

However, TA Securities said Golden Destinations should be valued at a 10% discount to its global peers’ average, given that the company has no directly comparable listed peers in Malaysia.

The discount reflects its smaller market capitalisation and its differentiated business-to-business model, while still benchmarking against international peers offering travel packages, cruise offerings, and other related travel products and services, the research house noted.

Earnings in 2025 have declined 10% to RM28.3 million, mainly due to softer revenue as well as a decline in margins from a higher proportion of Europe travel packages, which generally carry lower margins, and a decline in higher-margin sales from China and East Asia travel packages.

Meanwhile, higher marketing expenses related to a one-off high-profile Jacky Cheung 60+ Concert Tour event and advertising also weighed on Golden Destinations’ earnings last year.

Edited ByJason Ng

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