PETALING JAYA: TA Research has derived a fair value of 59 sen a share for Autocount Dotcom Bhd
, which is en route to a listing on Bursa Malaysia’s ACE Market.
In a report, TA Research said it arrived at this valuation after assigning a target price-to-earnings (PE) multiple of 18 times against Autocount’s 2024 forecast earnings per share.
The initial public offering (IPO) of the financial management software provider consists of a public offering of 93.6 million new shares and an offer for sale of 44 million existing shares, both at 33 sen each.
The company aims to raise about RM30.9mil under its IPO.
TA Research added that its fair value takes into account Autocount’s growth prospects, which is backed by digitalisation trends from its key markets, namely, Malaysia and Singapore, along with overseas expansion plans.
“Additionally, we have also taken into consideration Autocount’s strong double-digit margins and return on equity, experienced management team, and strong presence in Malaysia,” added the research firm.
From financial year 2019 (FY19) to FY22, Malaysia accounted for 75% to 83% of the group’s revenue, while Singapore made up about 15% to 24%.
“Leveraging on the success in these markets, Autocount has plans to expand into Thailand, Indonesia, Vietnam and the Philippines, in view that they are amongst South-East Asia’s largest economies.,” said TA Research, adding that the group’s expansion overseas will be supported by RM17.4mil of proceeds from its IPO.
Autocount also plans to strengthen its research and development efforts to remain competitive and relevant in the industry.
The group has earmarked RM5.2mil of proceeds from its IPO for these efforts which will be focused on enhancement of existing software and development of new software.
Where balance sheet is concerned, TA Research said that as at the end of the first quarter of FY23, Autocount was in a net cash position of RM17.7mil with cash and short-term deposits of RM21.6mil, while loans and borrowings stood at RM3.9mil.
On a pro forma basis, fresh proceeds of RM30.9mil from the IPO are expected to strengthen the group’s net cash position to RM48.6mil, added the research firm.
