Public Investment Bank Bhd (PublicInvest) has assigned a fair value of RM1.72 to Main Market-bound Stratus Global Holdings Bhd, citing the factory automation specialist’s strong positioning to capitalise on the long-term expansion of the global semiconductor industry and rising demand driven by generative artificial intelligence (AI).
In a pre-listing research note, the investment bank said Stratus Global is well placed to ride the semiconductor industry’s growth trajectory, underpinned by rapid technological advancements, increasing AI adoption and expanding demand for data centres, electronic devices and semiconductors, all of which are expected to fuel greater demand for automated material handling system (AMHS) solutions.
PublicInvest said Stratus Global’s research and development-driven approach has enabled the company to develop proprietary, customisable, modular and scalable cleanroom AMHS solutions tailored to evolving semiconductor manufacturing requirements.
The research house expects Stratus Global’s multi-pronged growth strategy, which includes expanding production capacity, strengthening its global footprint and broadening its semiconductor segment coverage, to enhance operational capabilities, widen its customer base and diversify revenue streams.
For its valuation, PublicInvest applied a price-to-earnings multiple of 30 times its forecast FY28 earnings per share, representing about a 30% discount to the weighted average regional peer valuation of around 41 times. The discount reflects Stratus Global’s high exposure to the semiconductor sector, customer concentration risk and its relatively smaller market capitalisation and operating scale.
Despite these factors, PublicInvest projects a three-year earnings compound annual growth rate of approximately 15%, supported by rising front-end wafer fabrication equipment spending and continued expansion in the back-end semiconductor segment.
PublicInvest noted that key risks to its outlook include intensifying competition, dependence on the semiconductor industry, customer concentration and foreign exchange fluctuations.
