Kuala Lumpur, July 29: EPB Group Berhad, a leading one-stop solutions provider for food processing and packaging machinery, is set to make its debut on the ACE Market.
Founded in 2000, the company has established a strong presence in the industry, offering turnkey solutions from design to automation for food production lines.
The IPO involves a public issue of 71.57 million new shares and an offer for sale of 40 million existing shares, making up 30 per cent of the group’s enlarged issued share capital.
With an issue price of RM0.56 per share, EPB is valued at a PE ratio of 13.9x based on its FY23 earnings.
EPB’s strengths lie in its comprehensive service offerings, experienced management team, and adherence to international quality standards.
The company’s leadership, boasting over 30 years of industry experience, ensures in-depth knowledge and cost-effective solutions for their clients.
EPB plans to expand its operations in Penang, increasing its factory and corporate office space to meet future demand.
The company is also focused on integrating automation and robotics into its machinery solutions, aligning with the ongoing trend towards industrial revolution 4.0.
From FY24 to FY26, EPB anticipates revenue growth driven by the expanding food processing and packaging industry.
Projected sales growth rates are 10 per cent for FY24, 12 per cent for FY25, and 15 per cent for FY26, with net profit expected to rise by 15.3 per cent, 24.9 per cent, and 18.5 per cent, respectively.
The food and beverage industry in Malaysia is projected to grow significantly, supported by increasing demand for processed food and automated solutions.
EPB aims to capitalize on this trend, with plans to expand into international markets, particularly in the Philippines and Indonesia.
Applying a PE ratio of 14x to its FY25 EPS, EPB’s target price is set at RM0.77 per share, reflecting a 37.9 per cent upside from the IPO price.
This valuation considers the company’s growth potential and market expansion strategies.
EPB is poised for robust growth, backed by its comprehensive service offerings, industry expertise, and strategic expansion plans.
The company’s commitment to quality and innovation positions it well to meet the rising demand in the food processing and packaging sector.
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