KUALA LUMPUR (Aug 4): The share price rally on newly listed Stratus Global Holdings Bhd (KL:STRATUS), which specialises in semiconductor cleanroom automation, continued on Tuesday.
The stock climbed to a high of RM2.36 a share on Tuesday, before ending the day 21 sen or 10% higher at RM2.31, a new high for the company which listed on the Main Market of the stock exchange on July 21. At the last price, the company is valued at RM2.89 billion.
Stratus Global is among a handful of companies that made a strong debut on Bursa Malaysia. Its share price has soared 188% against its initial public offer price of 80 sen.
Public Investment Bank Bhd (Public IB), the only research house currently covering the stock, said it would not rule out the possibility of earnings surprises in the coming quarters if the company secures additional orders.
At the current share price of RM2.27, the stock was trading at roughly 48 times of Public IB’s earnings forecast, according to the research house.
Public IB expects Stratus Global to make an annual net profit of RM58.5 million for the financial year ending March 31, 2027 (FY2027), and RM71.3 million in FY2028. This translates into earnings per share of 4.7 sen in FY2027 and 5.7 sen in FY2028.
The Main-board listed firm posted a net profit of RM51 million, or 4.09 sen per sen, down from RM66 million the year prior, on lower annual revenue of RM197 million compared with RM220.28 million in FY2025.
For the first financial quarter ended June 30, it posted a net profit of RM9.54 million, or 0.76 sen per share. Quarterly revenue came in at RM34.8 million.
Notably, Stratus Global’s share price has exceeded Public IB’s target price of RM1.72 by 32%. The research house told The Edge that it maintains its fair value of RM1.72, and reiterated a positive outlook on Stratus Global's prospects.
According to Public IB’s analyst, Stratus Global has given a bullish guidance on its order book, expecting it to grow two to four times in the next one year.
The optimism also reflects expectations of continued expansion in global semiconductor manufacturing, with investments in wafer fabrication plants and equipment spending expected to remain robust. Given that, Public IB expects strong demand for automated material handling systems (AMHS), the niche that Stratus Global operates in.
The analyst pointed out that Stratus Global currently derives a significant portion of its revenue from a relatively small number of customers, mainly semiconductor foundries and outsourced semiconductor assembly and test (OSAT) companies. Winning new customers could translate into further order book growth, it said.
The analyst commented that the climb on Stratus Global’s share price is broadly in line with positive sentiment towards Malaysia's semiconductor equipment and factory automation players, citing companies such as UWC Bhd (KL:UWC), Pentamaster Corp Bhd (KL:PENTA) and Kelington Group Bhd (KL:KGB), amid expectations that semiconductor industry growth will remain strong into next year.
An analyst from Malacca Securities also weighed in on Stratus Global, noting that strong quarterly earnings and raised full-year guidance from major US technology companies, including Amazon and Microsoft, have reinforced expectations of sustained cloud and AI infrastructure spending, which could support a higher earnings multiple for semiconductor-related stocks such as Stratus Global.
Based on a valuation in line with the Bursa Malaysia Technology Index's current forward price-earnings multiple, Malacca Securities said the stock could trade closer to RM2.60.
Stratus Global’s IPO raised RM285 million, with no offer for sale by existing shareholders, and was oversubscribed 129 times by retail investors. Proceeds were earmarked for expanding production capacity, research and development, overseas expansion and working capital.