TOPMIX (0302)-ACE market, Industrial products & services- Building materials

Profile Listed on 23 Apr 2024, TOPMIX (IPO price RM0.31) is primarily markets and sells its own brands of surface decorative products, including high pressure laminate products, compact panels, polyvinyl chloride edging, wall panels, decorative boards and PVC plywood.  The Group also imports and distributes surface decorative accessories, while holding the exclusive dealership to the STARAX range of kitchen and wardrobe accessories. The surface decorative products are mainly used in commercial and residential interior surface applications. TOPMIX's major customers comprise hardware product dealers and stockists interior designers, contractors of residential and commercial properties and carpenters.

Riding on better outlook for surface decorative products market According to Providence Strategic Partner, the surface decorative products market is expected to grow from an estimated RM640m in 2022 to RM760m in 2026 at a CAGR of 4.4%. The demand will be mainly driven by (i) recovery and growth in commercial and residential property markets, (ii) population growth, (iii) urbanisation, (iv) growing affluence of population, (v) supportive government initiatives aimed at encouraging home ownership, and (vi) rising demand for Malaysian furniture products globally.

Technical review TOPMIX is trading at consensus 21x FY2025E P/E. Based on hourly chart, the successful downtrend line breakout and trading above multipole key MAs and upper BB could spur greater upside towards 0.64-0.68-0.70 zones. Key supports are pegged at 0.56-0.58

✅Current price: RM0.61
✅Entry: RM0.56-0.58-0.61
✅Resistance: RM0.64-0.68-0.70
✅Cut loss: RM0.55
✅Risk profile: Medium

Source: Hong Leong Investment Bank Research - 12 Jun 2024