KUALA LUMPUR (Oct 7): PublicInvest Research has valued soon-to-be listed electronics manufacturing services (EMS) solutions provider  Betamek Bhd at 66 sen.  

In a note on Friday (Oct 7), the research house said as at Aug 31, 2022, Betamek manufactures and supplies vehicle audio products and components comprising vehicle infotainment systems and audio video accessories as well as air conditioning control panels, universal serial bus (USB) chargers, mirror switches, switch clusters and power sockets to automotive marques in Malaysia and Indonesia (through Perusahaan Otomobil Kedua Sdn Bhd).

It said that moving forward, Betamek intends to continue developing enhanced products to better meet its customers’ evolving requirements.

“Besides upgrading its manufacturing facility, BETAMEK intends to further automate its core business process and systems, as well as to enhance its manufacturing efficiency and production capabilities with acquisition of machinery and equipment.

“We derive a fair value of 56 sen based on a 16x PE multiple to its FY24F EPS of 3.5sen.

“The IPO is expected to raise approximately RM33.8 million from the issuance of 67.5 million new shares.

“Besides utilising 20.7% of the proceeds for new product development, 19.3% and 8.9% of the proceeds are allocated for upgrade of its manufacturing facility and purchase of new process equipment, respectively,” it said.