PETALING JAYA: Polymer Link Holdings Bhd
’s earnings are expected to increase from next year to 2028 driven by the high demand for water tanks in Australia and its expansion into other markets.
Polymer Link supplies plastic powder, which is an essential material used to produce large, hollow plastic products such as water tanks, cooler boxes, diesel fuel tanks, playground equipment, and modular housing components.
The company is enroute to a listing on the ACE Market of Bursa Malaysia with its initial public offering price set at 25 sen per share.
TA Research said the initial public offering price of 25 sen per share values the stock at a price-earnings multiple of 10.2 times core earnings per share (EPS) for the company’s financial year ended Sept 30, 2024 (FY24).
“We benchmark Polymer Link against global peers from the United States and Philippines. Correspondingly, we value the stock at 10 times 2026’s core EPS, arriving at a fair value of 31 sen a share.
“We believe this valuation is fair as Polymer has a smaller market capitalisation and higher return on equity relative to its peers,” the research firm said in a note to clients.
Touching on earnings, the research house estimates the group will record growth of 7.8%, 12.6%, 13.5% to RM14mil, RM16mil and RM19mil FY25, FY26, and FY27, respectively.
The FY25 to FY27 earnings projections were premised on the assumption that revenue growth would come in at 12%, 15%, and 16%, with core profit margins of 9.1%, 8.9%, and 8.7% for FY25, FY26 and FY27, respectively.
