Latest news with #ASMAutomationGroupBhd
New Straits Times
10-06-2025
- Business
- New Straits Times
ASM Automation valued at 21 sen, 24pct above IPO ahead of July 2 debut
KUALA LUMPUR: ACE Market-bound ASM Automation Group Bhd (ASM) boasts a fair value estimate of 21 sen, representing a 23.5 per cent upside from its initial public offering (IPO) price of 17 sen, according to Malacca Securities Sdn Bhd. The firm said the valuation is based on a forward price-to-earnings ratio of 15 times, applied to the automation machinery solutions provider's projected mid-point earnings per share of 1.38 sen for the financial year 2026. "We believe the discount is justified given ASM's smaller market capitalisation, coupled with its single-digit top line growth," the brokerage said in a research report released Tuesday. ASM is scheduled to debut on Bursa Malaysia's ACE Market on July 2. The IPO, which opened for application on May 29 until June 19, is expected to raise RM21.8 million. The bulk of the proceeds will fund business expansion, with 52.2 per cent earmarked for land and factory construction, 10.5 per cent for demonstration machinery and 9.2 per cent for design and development. The remainder will be used for working capital and listing expenses. According to Malacca Securities, ASM holds just a one per cent share of the automation machinery solutions market, but its ability to offer end-to-end automation for food and beverage (F&B) manufacturers is seen as a key strength. "This is reflected in its notable average customer base of 220 as per Financial Years Under Review, including prominent clients like Adabi Consumer Industries Sdn Bhd and Malayan Flour Mills. "ASM's D&D capabilities have also long been hidden gems that F&B manufacturers have yet to recognise," the firm said. Unlike many of ASM's competitors that only supply machinery, the firm said ASM is able to customise its solutions to meet a wide range of manufacturing needs and industry applications. ASM's market versatility is also evident in its involvement beyond F&B, including sectors such as poultry and currency note sorting, which enhances its growth potential. "Given this flexibility, clients are able to utilise more of their manufacturing space, leading to better factory space utilisation and enabling better economies of scale — a win-win situation. "Aligned with government initiatives to shift Malaysia towards a digital economy, ASM intends to enhance its internet of things solutions and robotics technology through its in-house engineering and development with approximately RM2.0 million," the firm added. For the financial year 2024, ASM posted a net profit of RM7.1 million and revenue of RM39.13 million, with a healthy balance sheet. Despite a modest 1.5 per cent earnings compound annual growth rate over three years, ASM is viewed as having stable prospects, underpinned by customised solutions, a stronger capital base and alignment with Malaysia's automation agenda. However, key risks include project delays, supply chain disruptions, talent retention issues, and geopolitical or regulatory uncertainties.
New Straits Times
29-05-2025
- Business
- New Straits Times
ASM Automation targets RM21.82 million proceed from Bursa listing
KUALA LUMPUR: Automation machinery solutions specialist ASM Automation Group Bhd aims to raise gross proceeds of RM21.82 million from its initial public offering (IPO), en route to a listing on the ACE Market of Bursa Malaysia. Priced at 17 sen per share, the IPO will offer up to 34 per cent stake in the company. The IPO involves a public issue of 128.34 million new shares, representing 24 per cent of ASM Automation's enlarged issued share capital of 534.77 million shares. It also includes an offer for sale of 53.48 million existing shares, equivalent to 10 per cent of the enlarged issued share capital. Application will close on June 19, and the company is scheduled for listing on July 2. ASM Automation plans to allocate RM11.40 million or over half of the IPO proceeds for the acquisition of 70,000-square-feet land and construction of a new factory to increase production and assembly capacity. A total of RM2.3 million or 10.5 per cent is earmarked for purchase of machinery, equipment and components used in assembling demonstration machineries to support operational growth and customer engagement. The company also will use RM2 million or 9.2 per cent of the proceeds for design and development activities to enhance research and development capabilities, while RM1.92 million or 8.8 per cent is for working capital to support day-to-day operations. The remaining RM4.2 million or 19.3 per cent of the proceeds will be used to pay the listing expenses. ASM Automation managing director Chan Kok Heng said it is now well-positioned to deepen its technical capabilities and expand its market reach, having evolved from a local custom automation provider into a trusted name in the automation machinery solutions industry. "The IPO will not only provide the funding required for our expansion plans but also enhance our visibility and credibility as a public-listed automation machinery solutions provider. "With these resources, we aim to scale our innovation, manufacturing capacity and export footprint to deliver even greater value to our customers," he said in a statement.
