iCents Group Holdings Berhad - The Niche Solution Provider
Tue, 01-Jul-2025 07:17 am
by Research Team • Apex Research

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ICENTS (0366)

Target Price (RM)

0.29

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Executive Summary

  • iCents Group is regarded as a complete solution provider for the establishment and refurbishment of new and existing cleanrooms across a wide range of industries including semiconductors, data centres and pharmaceuticals.

  • The Group manufactures some of its products at its Mantin factory. This enables the Group to command better cost competitiveness and quality control. The build-up of a new factory in close proximity alongside the procurement of new machineries are expected to yield significant improvements in operational efficiency, moving forward.

  • We recommend subscribe to iCents Group’s IPO with a target price of RM0.29 (20.8% potential capital upside from IPO price) based on P/E multiple of 11.0x pegged to FY26F core EPS of 2.6 sen.

 

Key Investment Highlights

 

Key beneficiary from the development of high-growth high-value industry. As the Malaysian government is committed to attract high quality investments such as data centres, electronics and pharmaceuticals into the country, iCents Group is well positioned to take advantage of these pivotal opportunities. The Group’s experience in its success in producing an ISO 4 cleanroom specifically in the semiconductor and electronics manufacturing industries shall prove its capability in increasing its addressable market moving forward.

 

Factory expansion. ICents Group aims to establish a new 20,000 sqft factory nearby its current 43,000 sqft factory in Mantin by the end of the year to store input materials and finished products. New machineries and equipment will be fitted into the existing factory to improve operational efficiencies while the new factory will have a ductwork forming machine and racking systems.

 

Geographical expansion to improve customer reach. The Group is in the midst of incorporating new offices in Jakarta and Kuching after successfully incorporating a new wholly-owned subsidiary in Singapore early this year. This will enable the Group to carry out sales and marketing efforts to secure new customers and projects, and to support project implementation and servicing.

 

Valuation & Recommendation. We recommend subscribe to iCents Group IPO with a target price of RM0.29 (21.0% potential upside from IPO price) by pegging its FY26F core EPS of 2.6 sen to PE of 11.0x. The assigned P/E represents 28.0% discount to selected peers premised on the Group’s niche business model and customer concentration risk.

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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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