Future Plans for Growth:

  • Expanding into Indonesia's Market
    Saliran plans to rent a 1,000 sq ft office unit in South Jakarta, Indonesia, to establish its New Indonesia Office. The group plans to hire one local sales manager and two local sales executives and to build and maintain relationships with local customers.
  • Increasing Inventory Levels for Business Expansion
    The group plans to allocate approximately RM8.37 million from its IPO proceeds to increase inventory levels within 12 months of listing. Higher inventory levels will enable the group to drive revenue growth by increasing sales volume to existing and new customers.
  • Developing and Growing Supply Distribution of jointly-owned "THF" Brand Products
    The group's jointly owned "THF" brand products enable it to achieve a higher gross profit (GP) margin. Saliran intends to further develop and grow its supply and distribution of THF products by (i) Encouraging sales personnel to promote THF products, (ii) Actively promoting THF products at exhibitions and trade shows and (iii) Training sales personnel on the product knowledge, applications, and quality of THF products.

Fair Value Price Range

Based on the FPE24 PAT of RM9.93 million, the annualized earnings are estimated to be around RM13.9 million. Given their track record of consistently achieving growth in the range of RM1-4 million over the past two years, a conservative assumption of RM1 million growth per year in FY25 and FY26 appears reasonable. This would bring the bottom line to approximately RM15-16 million.

Industry peers trade at a P/E multiple of 10-12.5x, suggesting a fair value range of RM0.40-0.50. This represents a potential upside of 50-87% from the IPO price of RM0.27, though actual valuations will depend on market conditions and the company’s ability to sustain earnings growth.