KUALA LUMPUR: Feytech Holdings Bhd is poised to record growth upon listing on the main market of Bursa Malaysia, says PublicInvest Research.
The firm said that among the growth drivers will be the construction of a new plant within the same vicinity in Kulim, for automotive seat manufacturing operations, the establishment of an additional automotive seat manufacturing plant in the Automotive High-Tech Valley, and the setup of a new facility for automotive covers division operations in the Klang Valley.
Feytech primarily manufactures automotive covers and seats in Malaysia.
Its revenue from automotive covers is generated from the original equipment manufacturer (OEM) and pre-delivery inspection (PDI) segments in Malaysia, as well as the replacement equipment manufacturer (REM) segment, with local and international sales to markets like Singapore, Australia, New Zealand, the US, and the Netherlands.
The firm derived a fair value of 88 sen for the company based on a 12 times price-to-earnings multiple to its forecasted earnings per share for financial year 2025 of 7.3 sen.
"Feytech plans to expand its automotive seat manufacturing operations through new plant expansions in order to cater to increasing orders.
"Also, the group intends to expand its automotive cover operations by setting up a new corporate office with a manufacturing plant and warehouse," said the research firm.
The company's initial public offering is expected to raise approximately RM114.7 million from the issuance of 143.3 million new shares. 44.9 per cent and 45.5 per cent of the proceeds are allocated for the construction of new facilities and working capital, respectively.
It added Feytech's competitive advantage, including its established track record and ability to comply with automotive OEMs's designs and specifications.