Public Investment Bank Research (PIVB) is valuing QES Group Bhd (QES), which is looking for a listing on the ACE Market at 22 sen, which is three sen more than its offer price of 19 sen.
QES’s core business is distributing inspection, test and measurement equipment, materials and engineering methods for electrical and electronics, automotive and semiconductor industries. The group also manufacturers optical inspection equipment, automated handling equipment and advanced wafer measurement system (AWMS) that are used in semiconductor industry.
The group also provides after-sales services such as training, repair and maintenance and upgrading services to its clients.
Currently, the Asean region is its main market as the company emphasizes on aggressive organic growth to set up a stronger corporate profile and market presence in the industry both locally and internationally.
“We value QES at 22 sen based on 10x FY2018F EPS, ascribing a 50% discount to average PER of 20.3x among selected test and measurement market players in Malaysia. We expect the steeper discount is warranted given QES’s small market capitalization relative to its peers.”
“The IPO is foreseen to raise approximately RM28.8 million from the issuance of 151.7 million new shares, with 37.2% of its proceeds to be utilised for capital expenditure and 16.8% of proceeds for development of 3 key improved products that are earmarked to drive future growth,” it added.
QES growth will focus on the development of advanced equipment that meets clients’ expectation, expansion of recurring income segment, diversification into new market segments for its product line-up and capital expenditure for productivity boost.
The catalysts for business growth involve i) enhancement in global economy, ii) increasing electronic content, iii) expansion in broad range of key end-user markets and supply side supported by government efforts, and iv) high commitment on research and development activities among market players to roll out newer test and measurement products.de cidadeдепутат лобановский
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