Rhone Ma Holdings fair value at RM1 per share

KUALA LUMPUR: JF Apex Research has ascribed a fair value of RM1.00 per share for Rhone Ma Holdings Bhd (RMH).

In a research note yesterday, the research house said its valuation was based on 33 per cent upside from the listing price of 0.75.

“We feel the valuation is fair given its ( RMH) favourable position in the animal health and nutrition market with 5.9 per cent market share.

“RMH is also a dominant player among 80 members that participated in the Malaysian Animal Health and Nutrition Industries Association,” it said.

Meanwhile, TA Securities has valued RMH stocks’ fair value at RM1.05 based on sumof-the-parts analysis (SOTP) valuation.

It ascribed price earnings ratio multiple of 12 times for RMH’s animal health products and services segments and eight times for the food ingredient segment.

“All in, we commend the group’s position in a steady growth industry, ability to offer extensive animal health products and services, healthy cash flow, and strong balance sheet,” said TA Securities.

RMH plans to raise RM31.59 million through its initial public offering exercise to fund its expansion plans in Malaysia and the overseas market, which entails a public issue of 42.12 million new ordinary shares, based on the issue price of 75 sen per share. — Bernama