Berjaya Research Sdn Bhd has assigned GB Bond Holdings Bhd a fair value of 36 sen a share, implying a 44% potential upside to the industrial adhesives maker’s IPO price of 25 sen.
In an IPO note dated Sept 17, the research house said the valuation was based on a target price-earnings ratio (PER) of 12 times applied to GB Bond’s forecast calendar year 2027 (CY27F) earnings per share of three sen.
The multiple is broadly in line with the closest listed peer, Techbond Group Bhd, which was trading at a FY26 PER of 11.7 times. Berjaya Research has not assigned a stock rating to GB Bond.
Berjaya Research said GB Bond’s growth prospects are supported by its established position in Malaysia’s industrial adhesives market, ongoing capacity expansion, growing regional exposure and rising demand.
GB Bond, which has a 26-year operating track record, manufactures and supplies industrial adhesives, emulsion polymers and sealants. It had an aggregate annual production capacity of 28,842.9 tonnes across the three segments and served 1,146 active customers in CY25.
The group held an estimated 7.6% share of Malaysia’s industrial adhesives market in CY25, based on RM48.7 million in revenue from the segment against an industry value of RM641.9 million.
Berjaya Research expects GB Bond’s revenue to rise to RM59.3 million in CY26F and RM70.7 million in CY27F, supported by stronger industrial adhesives and emulsion polymer sales, improving demand and deeper penetration of overseas markets, particularly Vietnam.
Core profit after tax and minority interests (PATAMI) is projected to grow to RM10 million in CY26F and RM12.2 million in CY27F, with margins expected at around 16.5% to 17.5%.
The forecasts follow improving momentum this year. Revenue rose 12.3% year-on-year to RM24.3 million in the first five months of 2026, while core PATAMI increased 18%, helped by higher sales volumes, a favourable product mix, better production efficiency and lower raw material costs in its emulsion polymer operations.
Expansion will form a key part of the next leg of growth. GB Bond plans to establish a sales office in Vietnam using about RM3.5 million of IPO proceeds, with the move aimed at improving customer access, order processing and logistics. Vietnam contributed RM2.8 million, or 5.4% of group revenue, in CY25.
The company will also allocate RM5.5 million towards a new 40,000 sq ft factory near its Bukit Panchor headquarters. The additional machinery is expected to lift industrial adhesives capacity by 35.3% to 31,971.3 tonnes a year and triple sealant capacity to 1,422 tonnes annually.
GB Bond is scheduled to list on the ACE Market of Bursa Malaysia on Oct 1, 2026.
The IPO comprises a public issue of 64.3 million new shares and an offer for sale of 42.9 million existing shares. Of the public issue, 20.6 million shares are allocated to the Malaysian public, 4.1 million to eligible persons and 39.6 million to Bumiputera investors approved by the Ministry of Investment, Trade and Industry. The offer-for-sale portion consists of 12 million shares for approved Bumiputera investors and 30.9 million shares for institutional and selected investors.
The public issue is expected to raise about RM16.1 million, of which RM5.5 million will fund the new factory and machinery, RM3.5 million will support the Vietnam expansion, RM1.2 million will go towards working capital, RM900,000 towards product formulation equipment and RM500,000 towards marketing. Another RM4.5 million has been earmarked for listing expenses.
