Malacca Securities in its reports said it derived a fair value of RM0.51 (an upside of 104% against the IPO price of RM0.25) for VTC. This fair value is derived by pegging a P/E ratio of 24.0x to the FY25f EPS of 2.14 sen. Although the peer average forward P/E stood at 16.2x, the house believes VTC may pegged to higher P/E of 24.0x given its strong PAT margin of more than 28% in FY23 (as compared to average peer margin of 8.8%), coupled with the AI-theme upcycle environment.As of the latest practicable date (LPD), Vetece Holdings Bhd (VTC) has 80 IT solutions personnel.
MSSB said it projects the revenue to grow at 8.5-30.0% to RM25.1m-RM39.2m for FY24-26f, while the core net profit is expected to increase by 7.3-20.3% to RM7.0m-RM9.6m, supported by the management's aim to take on more complex jobs, higher margins and continued demand in the telecommunication and banking sectors