InvestIdeas

Initial public offering (IPO) price at 24 sen per share

The IPO price translates into a price-earnings multiple of 23.53 times based on the group’s audited profit after tax (PAT) of RM5.44 million or 1.02 sen per share for the financial year ended Dec 31, 2022 (FY2022).

Edelteq provides engineering support for integrated circuit (IC) assembly and test processes within the semiconductor industry.

Revenue increased from RM12.4 million in FY2019 to RM16.7 million in FY2020, followed by RM24 million in FY2021, and RM24.4 million in FY2022.

The local market contributed RM18.91 million or 77.6% of the group's total revenue in FY2022, while overseas markets such as Singapore, China, Thailand and the US accounted for the remaining 22.4%.

Based on its IPO price of 0.24, the counter is priced at a trailing price-earnings (P/E) of 17.7 times core earnings per share (EPS) for calendar year 2022 (CY2022).

Edelteq had a net cash position of RM3 million with cash and bank balances of RM6.2 million and borrowings of RM3.2 million as at end-December 2022.

Edelteq Holdings Bhd registered a net profit of RM3 million on revenue of RM9.8 million for the first quarter ended March 31, 2023 (1QFY2023).

Some 62% of the group’s revenue or RM6.2 million came from the design, development and assembly of automated test equipment and factory automation,

Meanwhile, 22.1% or RM2.2 million revenue was contributed by the design and assembly of IC burn-in boards and the supply of printed circuit boards, while the remaining RM1.5 million (14.9%) was from the supply and refurbishment of IC assembly and test consumables.