Master Tec Group Bhd (MTEC) is primarily a manufacturer of a wide range of quality low voltage (LV) power cables, control and instrumentation cables, as well as other related products for various end-user markets, including power utility, renewable energy, property development and construction, oil and gas, infrastructures, public transportation, manufacturing, industrial, commercial and electrical and electronic (E&E). The wires and cables manufactured by the group are made-to-order in accordance with the specifications detailed in the purchase orders received from its customers. As at 29 Nov 2023, MTEC is a registered LV power cable supplier with the Ministry of Finance (MOF) for government-related projects in Malaysia. Having obtained the Certificate of Product Acceptance from Tenaga Nasional (TNB) for its aluminium-cored LV power cables, MTEC is also a certified supplier of LV power cables to power utility companies in Malaysia such as TNB, Sabah Electricity S/B (SESB) and Sarawak Energy Bhd (SEB).
Besides expansion of its market coverage through export sales, MTEC intends to venture into the manufacturing of medium voltage (MV) power cables for power distribution purposes catering to customers from various end user markets, including but not limited to power utility, solar photovoltaic (PV), industrial parks, commercial buildings and public transportation. We derive a fair value of RM0.48 based on a 16x PE multiple to its FY24F EPS of 3.0sen. The IPO is expected to raise approximately RM61.7m from the issuance of 158.1m new shares. 66.8% and 26.4% of the proceeds are allocated for capital expenditure and general working capital, respectively.
Source: PublicInvest Research - 18 Jan 2024