Enest Group Berhad (ENEST), a Malaysian edible bird’s nest (EBN) processor and exporter, is expected to see steady earnings growth following its planned listing on Bursa Malaysia’s ACE Market, supported by expansion into China exports and downstream manufacturing, according to an IPO note by M+ Global.
M+ Global projects ENEST’s earnings to grow at a three-year compound annual growth rate (CAGR) of 8.5%, with core profit after tax and minority interest (PATMI) forecast to reach between RM8.4 million and RM10.3 million over the next three years.
The growth outlook is expected to be driven by new revenue streams from raw uncleaned bird’s nest (RUBN) exports to China, alongside a broader customer base for raw cleaned edible bird’s nest (RCEBN) exports targeting traditional Chinese medicine and wellness product manufacturers.
M+ Global has assigned ENEST a fair value of RM0.16 per share, representing a 23.1% upside from its IPO price of RM0.13. The valuation is based on a price-to-earnings (PE) multiple of 10 times pegged to FY27 forecast earnings per share of 1.60 sen.
ENEST, which began operations in 2015, is principally involved in processing and selling RCEBN, trading RUBN and RCEBN, distributing value-added downstream bird’s nest products, as well as operating health and personal care retail outlets.
The company is scheduled to open its IPO application on 26 June 2026, close applications on 2 July, conduct balloting on 6 July, complete share allotment on 13 July and list on the ACE Market on 15 July.
M+ Global highlighted ENEST’s strategy to move further downstream through in-house bottled bird’s nest manufacturing.
Currently, processed bird’s nest products contribute only 0.8% of group revenue and production activities such as cooking, bottling and brand labelling are outsourced to third-party manufacturers.
Following the planned relocation of its Kajang facility, ENEST intends to establish a dedicated production line for bottled bird’s nest and herbal beverages with an annual capacity of up to 300,000 bottles.
The move is expected to give the company greater control over production and potentially improve margins once operations commence in the second quarter of 2029.
The trading segment has become an increasingly important contributor to ENEST’s business, with RUBN trading revenue rising significantly from RM2.9 million in FY22 to RM56 million in FY25, accounting for 35.3% of total revenue.
Post-IPO, ENEST plans to expand into direct RUBN exports to China, leveraging its supplier network covering about 940 registered swiftlet houses across Malaysia.
The company also intends to strengthen its RCEBN exports by moving beyond its current model of selling unbranded products to Chinese distributors, retailers, importers and state-owned enterprises.
ENEST aims to target traditional Chinese medicine and wellness product manufacturers in China, with its Good Agricultural Practice and regulatory registrations, including General Administration of Customs of China (GACC) registration, providing an advantage in accessing the market.
M+ Global said ENEST’s transfer from the LEAP Market to the ACE Market is expected to enhance liquidity and broaden investor participation.
Unlike the LEAP Market, which is restricted to sophisticated investors, the ACE Market allows access to a wider investor base including retail and institutional investors.
The listing is expected to improve ENEST’s visibility as the company expands its presence in the regional edible bird’s nest industry.
