This article first appeared in Capital, The Edge Malaysia Weekly on October 20, 2025 - October 26, 2025

SLATED for listing on the ACE Market of Bursa Malaysia on Oct 23, automated test firm THMY Holdings Bhd (KL:THMY) is looking to tap the artificial intelligence (AI) megatrend to further propel its business growth.

It is primarily involved in providing automated test solutions for electrical and electronic products, industrial automation solutions, and maintenance and repair services.

With an initial public offering (IPO) at 31 sen per share, THMY is expected to achieve a market capitalisation of RM275.28 million upon listing. Its IPO, which comprises the public issue of 143.91 million new shares and the offer-for-sale of 88.8 million existing shares, saw strong demand with an overall oversubscription rate of 35.57 times.

Founded in 2008, the Penang-based company aims to raise up to RM44.6 million, with 58% earmarked for the construction of a new factory in Batu Kawan measuring 88,000 sq ft to house 20 new functional circuit test assembly workstations and support future demand from technology, media and telecommunications customers that typically require higher volumes of automated test solutions.

It also has expansion plans into Thailand — its key revenue contributor, accounting for 10.4% to 27.7% of the company’s sales over the past four financial years.

Malacca Securities, in its Oct 7 note, has a target price of 49 sen for THMY, highlighting that the company’s long-standing relationship with global multinational corporations validates its margin expansions from higher-complexity orders and high quality demand.

The research house is of the view that THMY’s margins will continue to sustain on the high side, given the continuous improvement in electronics manufacturing services and original equipment manufacturer chips led by the global AI megatrend. Its net margin expanded to 21.9% in FY2025 from 5.13% in FY2022, thanks to the improvement in product mix with higher product complexity.

“We project three-year earnings CAGR (compound annual growth rate) of 24.8%, with core PAT (profit after tax) anticipated to reach RM14.7 million to RM22.6 million over the next three years. This growth is underpinned by capacity expansion from new machinery; strong demand from customers due to AI megatrend; and regional expansion into Thailand,” Malacca Securities says.

To strengthen its presence in Thailand, THMY intends to set up a new support and maintenance office there by the first quarter of next year, targeted to be within Si Racha and Amata in Chonburi. This will enable the company to provide a faster response time for maintenance and repair services and further expand its customer base, says Malacca Securities.

Meanwhile, in its Oct 3 note, Rakuten Trade, which has a fair value price of 41 sen, notes that demand for THMY’s functional circuit test solutions is rising, particularly from customers within the technology, media and telecommunications industries.

With the allocated 58% of IPO proceeds for its factory expansion in Batu Kawan Industrial Park, the company will be able to fulfil high-volume orders from existing customers and can capture new business opportunities once its operations commence in 2Q2029, the research house adds.

THMY’s local peer is Aimflex Bhd (KL:AIMFLEX) while globally, its peers include Bozhon Precision Industry Tech, Kyoritsu Electric Corp and Zhuhai Bojay Electronics Co Ltd.

Post-listing, THMY’s co-founder and CEO Ooi Can Nix will have a 68.9% stake in the company, while Ooi’s wife Chu Mooi Leng will hold 3.6%, and Chew Yap Meng — the chief operating officer and executive director — will own 1.3%.

Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO.

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