Kucingko Bhd Target Price: RM0.585 with 95% Upside – Malacca Securities
For the fiscal years 2024 and 2025, KB’s topline is projected to grow to RM33.0 million and RM39.0 million, respectively. This growth is supported by an increase in personnel, enabling KB to take on more projects. Consequently, the core net profit is expected to rise by 31.2% YoY to RM11.0 million in FY24 and by 27.1% YoY to RM13.9 million in FY25, with improved margins due to the management’s strategy of taking on more complex and higher-margin jobs.
The fair value of KB is ascribed at RM0.585, derived by pegging a forward P/E of 21.0x to the FY25 EPS of 2.79 sen. This forward P/E is justified as it aligns with the average current P/E of selected international peers in the 2D animation production industry. Given the current share price of RM0.30, this represents a capital upside of 95.0% and a total return of 97.9% including the dividend return.
Kucingko Bhd, a 2D animation company, expects its topline to rise to between RM33 million and RM39 million in the financial years 2024 and 2025 (FY24/FY25). 100% will be oversubscribed more than 80x
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vcjskpa
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Posted by vcjskpa > 2024-07-11 16:26 | Report Abuse
Business is good since 2022, 2023 revenue jumped 32.9% year-on-year to RM23.5m from 2022 RM17.7m