Feytech Holdings Berhad - Innovating Comfort for the Automotive Industry
Wed, 08-May-2024 07:57 am
by Team Coverage • Apex Research

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FEYTECH (5322)

Target Price (RM)

1.13

Recommendation

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  • Feytech is an established manufacturer of automotive covers and automotive seats, with a proven track record of approximately 21 years.
  • Core earnings are expected to be boosted by addition of two new clients in the automotive seats segment, increase utilisation rates leading to improvements in ASP and higher margins, and aggressive marketing efforts aimed at capturing the AHTV project.
  • Feytech is valued by pegging its FY25F core EPS of 6.0sen to PE of 19.0x, leading to a FV of RM1.13 (41.3% potential upside from IPO price).
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