KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) has assigned a fair value of 38 sen to ACE Market-bound PMW International Bhd, based on a price-to-earnings ratio (PER) of around 15 times its forecast earnings for the financial year 2026.
The research house noted that this valuation reflects a discount of about 20 per cent to the PER of roughly 19 times for the Bursa Malaysia Industrial Products & Services Index.
“While there are no directly comparable listed peers on the bourse, we believe the discount is justified given PMW’s relatively small market capitalisation and business scale, though this is partially offset by its impressive margins,” it said in a note today.
PublicInvest also projected that PMW’s revenue will expand at a compound annual growth rate (CAGR) of about 7 per cent over three years, reaching RM203 million by financial year 2027.
“This growth is anticipated to be supported by increasing capital expenditure in the electricity utility and telecommunications industries, which require concrete poles and piles as a supporting infrastructure.
“Furthermore, new major infrastructure projects in East Malaysia, including the Sarawak Coastal Road, are expected to drive demand for concrete piles,” it added.
PublicInvest also anticipates stable demand driven by the regular replacement of ageing utility poles, especially in rural and coastal areas.
“In terms of profitability, we expect the group’s gross and net margins to remain resilient, supported by greater efficiency from the planned purchase of new machinery and equipment.”
© New Straits Times Press (M) Bhd
