PETALING JAYA: A fair value of 14 sen per share based on a price earnings ratio (PER) of 15 times to 2027 earnings per share (EPS) has been derived for Eckem Holdings Bhd, a speciality industrial chemicals player.
En route to a listing on the ACE Market of Bursa Malaysia, TA Research said this implied a circa 60% discount to peers’ average PER of 38.7 times.
The discount reflects Eckem’s relatively small market capitalisation, limited scale and market presence, and thinner trading liquidity versus established peers, it said.
“That said, we believe a 60% discount appropriately balances these limitations against the group’s growth prospects and improving financial position, supported by increasing sales volume and production capacity of Novatex, expanding the product range under the distribution segment and disposing of non-core properties and reducing interest expenses through loan repayments.
“At its initial public offering price of 12 sen per share, Eckem is valued at a trailing PER of 16.2 times financial year ended Dec 31, 2025 core EPS.
“Correspondingly, we value it at 15 times 2027 core EPS, arriving at a fair value of 14 sen per share.”
TA Research noted that Eckem sources, distributes and sells a broad range of specialty industrial chemicals used as raw materials and intermediates across industries such as paints and coatings, construction materials, inks, adhesives and automotive coatings.
The group also provides technical support and customised formulation services, working closely with customers and suppliers to develop specialised chemical solutions that meet specific application requirements.
