Based on its IPO offering of RM 0.90 per share, its offer is valued at a lofty P/E Ratio of 31.6x. It seems that a lot of growth is priced into this high valuation upon IPO.
Referring to IPO Prospectus, the company is expanding Customer's A order book in electronic cigarettes New production facilities for EMS operations We intend to further expand our production facilities and invest in 4 new automated production lines for refill pods at our Senai 227 Factory to cater to the expected expansion of our EMS for electronic cigarettes. With the new production lines, our expected capacity will increase by approximately 133% to 7.7 million pieces per month compared to 3.3 million pieces per month by the end of 2024. As at LPD, we have 2 cleanrooms as set out below: - an ISO Class 8 cleanroom which houses 8 automated production lines and 2 automated blister packaging lines for the refill pods; and - an ISO Class 8
KUALA LUMPUR (Feb 21): Mercury Securities Sdn Bhd has a “subscribe” recommendation on soon-to-be-listed Cape EMS Bhd at 90 sen, with a fair value of RM1.53 based on FY24F EPS of 8.5 sen and a PE of 18x, in line with its peer’s five-year average.
In a note on Tuesday (Feb 21), the research house said it likes the stock for its attractive growth prospect on the back of its expansion plans for its EMS and aluminium die cast business.
“The target price represents a potential return of 70.0% over the IPO price,” it said. ----- OMG Kool big angpows $$
KUALA LUMPUR (Feb 21): Mercury Securities Sdn Bhd has a “subscribe” recommendation on soon-to-be-listed Cape EMS Bhd at 90 sen, with a fair value of RM1.53 based on FY24F EPS of 8.5 sen and a PE of 18x, in line with its peer’s five-year average.
In a note on Tuesday (Feb 21), the research house said it likes the stock for its attractive growth prospect on the back of its expansion plans for its EMS and aluminium die cast business. “The target price represents a potential return of 70.0% over the IPO price,” it said -------- JACKPOT waiting .....$$$$$
Initiate coverage with BUY and target price of RM1.60, based on 20.0x 2024F PE which is trading on a par with its closest industry peers’ average forward PE. Listing at 15.0x 2023F PE with an IPO price of RM0.90, CAPE has ample of upside from here and we also expect a three-year net profit CAGR of 32% from 2022. Meanwhile, such an undemanding PE represents a 40-50% discount from its closest peers – Aurelius Technologies and NationGate. Blue-sky valuation if pricing at 1x PEG ratio suggests a potentially higher target price of RM1.98 (at 25x 2024F PE).
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
pokta
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Posted by pokta > 2023-02-20 10:19 | Report Abuse
want to feel like 1st (10-03-23)