KHPT Holdings Bhd (KHPT) to grow by double digit from 2024-2026, projected to achieve over RM140m in annual revenue as supported by capacity expansion, sustainable local brands and government incentives.
Analysts have projected the company’s revenue to grow at 3.2-14.1% to RM117.8m-141.4m for the period from 2024 to 2026, while the core net profit is expected to increase by 12.6-19.3% to RM6.6m-8.6m.
A fair value of RM0.285 has been assigned to KHPT’s shares, scheduled to be listed on October 8. This is RM0.085 or 42.5% above the listing price of RM0.20.
KHPT is involved in the manufacturing and distribution of automotive parts and components, including body parts, seat structures, engine parts, and absorbers.
As reported, KHPT has plan to use over 70 % of the ~RM21m proceeds from its IPO shares for the installation of press machinery and automation equipment, to be completed within 24 months as estimated.
KHPT serves as a long-term supplier to the national auto brands, Proton and Perodua, which are the key drivers of growth in the automotive parts and components sector. In 2023, Perodua remained the top automotive brand in Malaysia, capturing 41% of the market, followed by Proton with 19% market share. Together, Proton and Perodua dominated nearly 60% of the market. Japanese auto makers, Toyota and Honda, combined accounting for 23% of the Malaysian auto market.
According to the Malaysia Automotive Association (MAA), Perodua sold 169,849 vehicles in the first six months of 2024, a 17.4% year-on-year increase from 2023. During the six-month period, its market share also grew by 4%, reaching 43.5%.
In 2024, both the brands are expected to hold a 67.8% market share in the passenger car segment and contribute 62% of the Total Industry Volume (TIV), or total vehicle sales. Automotive parts suppliers like KHPT, with nearly 30 years of industry experience, stand to benefit from the sustainable growth and the standardisation of parts across vehicle models.
Further, Malaysia has positioned itself as a competitive hub for automotive manufacturing by offering several industrial incentives. These include full exercise duty and sales tax exemption on CKD electric vehicles (EVs) until 2027 and import duty exemption on CBU EVs until 2025. These measures aim to reduce costs for EV assemblers and could translate to higher local content thus boosting the demand for KHPT’s expertise and auto parts.
