NationGate

[winston]

not vested

Dec 12, 2022

EMS provider NationGate aims to raise RM165.5m from ACE Market IPO

by Syafiqah Salim

Electronics manufacturing services (EMS) provider NationGate Holdings Bhd is seeking to raise RM165.5 million in its initial public offering (IPO), where the bulk of the proceeds will be used to repay bank borrowings.

With an issue price of 38 sen per share and an enlarged share capital totalling 2.1 billion shares, the company is expected to have a market capitalisation of RM788.1 million on its debut on Jan 12, 2023 — making it the largest listing on the ACE Market of Bursa Securities.

NationGate is an established EMS provider focusing on the assembly and testing of electronic components and products to produce completed printed circuit boards (PCBs), semi-finished sub-assemblies and fully assembled electronic products as well as semiconductor devices.

NationGate posted a profit after tax (PAT) of RM30.7 million for the financial year 2020 (FY2020) on a revenue of RM566.2 million as opposed to a PAT of RM5.3 million for FY2019, when revenue was RM326 million.

Its PAT for FY2021 jumped to RM59.5 million as revenue expanded to RM760.9 million.

For the financial period ended June 30, 2022 (FPE2022), the company registered a PAT of RM33.4 million on a revenue of RM426 million.

Malaysia accounted for 74.4% of its FPE2022 revenue, while 25.6% came from overseas.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... market-ipo

[winston]

not vested

UOB Kay Hian starts coverage on NationGate, target price 98 sen

by Surin Murugiah

Sees multiple legs of growth that can supercharge a three-year revenue/core net profit CAGR of 24%/30%, premised on cross value-chain integration, trade-diversion related supply chain reconfiguration and aggressive expansionary plans.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/651452

[winston]

TA Securities values ACE Market-bound NationGate at 70 sen a share

by Syafiqah Salim

On the back of the company’s expansion plans, as well as strong growth in the electrical and electronics industry.

Group’s established track record attested to by its long-term strategic business relationships with multinational corporations.

Grow at a three-year compound annual growth rate of 10.8% to RM1.04 billion, and its core earnings by 22.3% to RM104.9 million, for financial year 2024 (FY2024).

Near-term visibility is also supported by NationGate’s unbilled purchase orders of RM369.6 million as at Nov 14.

As at end-June, NationGate's net debt stood at RM234 million, with a gearing of 1.6 times. On a pro forma basis, TA Securities said fresh proceeds of RM165.5 million from the IPO are expected to see the group’s gearing narrow to 0.5 times.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/649652

[winston]

not vested

NationGate – Sowing seeds to capture enormous potential.

While this giant-in-themaking EMS name is not spared from the slowdown in 1H23, the group is confident in achieving bottom line growth of 20% yoy, stemming from the improving order loadings from its key customers in the Consumer Electronics, Data Computing and Automotive
segments.

The group sees a sea of opportunities from its Networking segment following its
customer’s supply chain relocation (hence product outsourcing) from China (which still
manufactures two-thirds of total volume) to Malaysia (of a meagre <6% revenue
exposure).

NationGate is also in commercial discussions with new customers which could see earnings contribution as soon as 3Q23.

New floorspace from its Plant 8 (250k sqft;bcompletion by Dec23) has been partially taken up while the group could also be eyeing new floorspace to house new prospects.

Source: UOBKH

[winston]

not vested

4Q Results:-

Revenue: 16x; RM 3b
EPS: 4x; 0.0125
Net Asset: 0.41

https://www.bursamalaysia.com/market_in ... id=3528952

[winston]

not vested

NationGate hits new record high on first mover advantage, deliveries of AI GPU servers

By John Lai

NationGate is one of the four elite Nvidia original equipment manufacturer (OEM) partners in the Asean region.

It holds a first-mover advantage in Malaysia and is seen as a neutral OEM partner for non-US hyperscalers relocating their supply chain in the region.

Analysts forecast that NationGate’s revenue could grow 62.7% in 2025 to RM6.19 billion, and net profit would grow 57.6% to RM210.6 million. This translates to a forward price-earnings (P/E) ratio of 29.8 times,

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/739926

[winston]

not vested

Nov 28, 2024

9M24: Within Expectations; Positives Priced In At Current Levels Results in line.

NationGate is on track for a growth spurt, backed by:
a) ramped-up production from new server business, and
b) resumption of growth roadmap of its key customers.

Further impetus could stem from new customer acquisition alongside synergistic business collaboration.

Following its remarkable share price outperformance of 7x since our initiation, we believe the positives have been priced in at an implied forward PE of 31x.

Downgrade to HOLD. Target price: RM2.10.

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... TGATE%20MK)%20241128.pdf?utm_medium=email&_hsenc=p2ANqtz--cI0HFZAJH7cP0Dknw6k2bQVIviu_Z3ef_Nkv-UJS1O7L8W4xMYtYkdFwkghfNCfEmF2EqwMra9Y74Noe6WgatLynwyg&_hsmi=336033051&utm_content=336033051&utm_source=hs_email

[winston]

not vested

NationGate (NATGATE MK) - Result beat - RM100m quarterly core profit
Date: 2025-02-28
Firm: PHILLIP CAPITAL
Price Target: 2.70
Price Call: BUY

NatGate's 2024 core net profit of RM170m (+2.7x YoY) exceeded our and consensus expectations on stronger-than-expected server business 4Q24 delivered its highest quarterly core profit since listing at RM100m on doubling in revenue

Raise 2025E EPS by 15% to reflect higher server deliveries.

Despite the earnings upgrade, we lower our TP to RM2.70, applying a lower PE multiple to account for policy uncertainties surrounding AI chip export restrictions. Maintain BUY

https://klse.i3investor.com/web/priceta ... arch/74656

[winston]

not vested

Nationgate Holdings - Scaling New Heights
Date: 2024-12-02
Firm: KENANGA
Price Target: 3.10
Price Call: BUY

NATGATE's 3QFY24 briefing reaffirmed its strong outlook.

For FY25, the group targets RM10b turnover, driven by AI GPU and non-AI CPU server demand, supported by solid delivery momentum and net margin stability at 3%-4%.

We raised our FY24-25F earnings by 34% and 35%, respectively, as we assessed its revised guidance as reasonable, which captures still less than 10% of the server market by our reckoning (see our analysis in the following page).

We raise our TP to RM3.10 (from RM2.30 previously), based on an unchanged 25x FY25F PER, reflecting its leadership in high-growth data computing and networking segments.

Maintain OUTPERFORM.

https://klse.i3investor.com/web/priceta ... arch/73769

[winston]

vested

NationGate continues freefall, closing at new 52-week low despite denying link to Nvidia chip probe

By Emir Zainul

At RM1.14, the company is valued at RM2.60 billion. It has lost about RM1.62 billion in market capitalisation since the start of its downfall on March 3.

At RM1.14, the company is valued at RM2.60 billion. It has lost about RM1.62 billion in market capitalisation since the start of its downfall on March 3.

Of six analysts covering NationGate, five have "buy" calls and the remaining one has a "hold" call. The consensus 12-month target price for the stock is RM2.66. None of the analysts have revised their calls since the start of the sharp fall of the share price last week.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/747420