KUALA LUMPUR: TA Securities Holdings Bhd expects EPB Group Bhd's sales to grow 10 per cent, 12 per cent and 15 per cent for the financial years 2024, 2025 and 2026 (FY24/25/26) respectively.
This will be due to the expanding market for food processing and packaging machinery.
TA Securities also expects EPB's net profit to increase by 15.3 per cent, 24.9 per cent and 18.5 per cent over the same period, driven by rising demand in the food manufacturing and processing machinery sector and cost control measures.
The projections are based on the net profit margin improvement to 12.2 per cent, 13.6 per cent and 14.1 per cent for FY24/25/26 as a result of effective cost optimisation strategies.
"We expect the demand for food manufacturing and processing machinery to increase due to the ongoing industrial revolution 4.0 trend, where automated solutions are increasingly demanded," it added.
TA Securities also highlighted EPB's plans to enhance its presence in Pulau Pinang by setting up a corporate office and a new factory with a combined built-up area of 70,000 square feet (sf).
At present, the company operates a plant with a built-up area of 28,355 sf in Penang Science Park.
"Going forward, the group plans to expand their existing factory building by 83 per cent to 52,000 sf.
"A portion of the land (18,000 sf.) will be utilised as a showroom and warehouse, allowing the group to display their machinery and store raw materials as well as finished goods.
"Overall, the new factory building will enhance the production of food processing and packaging machinery," it said.
The firm also noted that the expansion in Penang includes building a new factory and corporate office to meet future demand.