IPO TTVISION (IPO RM0.34)
Enlarged market cap upon listing is RM159.1m. Proceed are used for (i) repayment of bank borrowings (20.9%), (ii) R&D Expenditure (27.9%), (iii) working capital (37.2%) and (iv) marketing and listing expenses (14.1%). We believe the proceeds usage are balance and is wisely used for the time being to generate the growth that they are anticipating. Was already listed on LEAP market in 2019, and moving now into ACE market.
They are involved in manufacturing of vision inspection modules serving the semicon manufacturers based in Penang, and started exporting inspection modules to China, Phillippines and Singapore.
Expanded into optoelectronic sector to inspect mainly LED in 2004 and Solar industry in 2010.
Generally, the industries they are in are still growing hence we believe the growth factor is there for them.
Meanwhile, the annualised net profit for FY22 is RM10-11m, which translate to around 14-15x PE. If we pegged a growth rate of 20% for the net profit in 2023, the PE multiple will be along 12-13x. The peers are QES and VITROX. We should be using roughly 15-18x PE for TTVISION, translating to a fair value along RM0.38-0.50.
Source : M+ Analyst