GLOSTREXT BERHAD (GLXT )
Analyst Report
Glostrext Bhd: Engages in the provision of geotechnical instrumentation services in the piling, structural and geotechnical related services, covering instrumentation, testing and monitoring services to construction projects as well as completed buildings and infrastructure. Based on FY23 revenue of RM21.6m, the group derived 64.3% of revenue from Singapore, 35.0% of revenue from Malaysia and 0.7% of revenue from Cambodia
Moving forward, Glostrext aims to expand their structural and ground instrumentation and monitoring business in Singapore through the purchase of required instruments and equipment. The group also aims to improve Glostrext WiNA platform in bid to enhance the research & development efficiency. Based on their outstanding orderbook of RM8.9m, this will sustain revenue visibility over the next 12 months.
Based on IPO price of RM0.19, their FY23 core P/E stood at 22.4x, which is above Bursa Malaysia's construction sector that is trading at 11.9x and their closest peer that is in the black which is PTARAS that is trading at 14.5x. This suggest valuations are a little stretched.
M+ Online Analyst
My View
Construction sectors share price dah buat recovery for the past weeks. This IPO consider as a small IPO raising fund hanya 20 million. Share offered to public tak banyak. hanya 105,830,000 unit..
our of this small allocation only , 20,352,000 are available for malaysian public untuk apply.. Very limited and I expect akan oversubscribe by at least 30x.
in term of valuation, closest peer PTARAS trading at 14.5x PE , but GLXT will be traded at PE 22.4x. might see a bit of downside risk here. company net assets stood at 13 cent a piece.. yang ni consider support price.
company ada orderbook about RM 9 million. which is good untuk company bertahan selama 12 months. most fund use for business expension dan buat bayar bank borrowing ( mortgage loan) .
my view on this also NEUTRAL tapi a bit biased upside due to IPO theme skrng.. banyak je IPO yang meletup even though exceeds valuation. especially kalau yang nk apply dan jual on first day. dengan offer price 19 cent, 80m unit allocated utk director dan selected investor, i personally rasa this ipo akan moving towards upside direction. Personally sy akan apply amount yang biasa buat trading . Dapat 3-4 cent on first day pun ok.