Plytec Holding Berhad (IPO)
Tue, 31-Oct-2023 09:50 am
by Research Team • Apex Research

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PLYTEC (0289)

Target Price (RM)

0.39

Recommendation

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Summary

  • Plytec's IPO at RM0.35 is expected to yield a forward PE valuation of 13.3x for FY23F and 11.4x for FY24F, with a fair value of RM0.39 (11.4% potential upside) based on assigned target PE of 12.5x to FY24F EPS.
  • Core net profit shown resilience, with a slight decline in FY21 followed by substantial recovery over the subsequent two years, driven by increased contributions from the CME segment, and it is expected to grow by 16.2% YoY in FY23F and 17.2% YoY in FY24F.
  • Plytec's plans involve investing in expanding temporary work assets, developing the Olak Lempit Land facility, and enhancing digital systems for the CME Solutions and DDE Solutions segments, with a particular focus on the significant growth of the latter in FY21.
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