Background

Kucingko Berhad (KUCINGKO) is primarily engaged in 2D animation production services through its subsidiary, Inspidea Sdn. Bhd. A minor portion of the business involves providing food services, managed by its subsidiary, Bowleh Sdn. Bhd. The 2D animation services involve using digitally drawn images to create visual content, mainly for animated series, catering to major markets in North America, Asia Pacific, and Europe.

IPO Statistic

The IPO entails a public issue of 100mn new ordinary shares, and an offer for sale of 100mn existing ordinary shares, at an IPO price of RM0.30/share.

Public Issue:

• 25.0mn new shares for application by the Malaysian public;

• 10.0mn new shares for application by eligible parties; and

• 65.0mn new shares for private placement to selected investors.

Main Competitive Advantages

1. High-Profile Clientele, working with internationally recognized brands such as Warner Bros. Group and Titmouse Group;

2. International Market Reach; and

3. Experienced Management Team.

Valuation

At an IPO price of RM0.30/share, KUCINGKO is priced at a trailing PER of 17.9x FY23 EPS. We value the company at 18.4x FY25 EPS, arriving at a fair value of RM0.43/share.

Source: TA Research - 10 Jul 2024