TA Securities Holdings Bhd has assigned EcoSys (M) Bhd a fair value of 45 sen per share, representing a 66.7% premium to its 27 sen IPO price, as the research house sees the semiconductor solutions provider benefitting from its technology capabilities, established multinational customer base and expansion plans.
In its IPO note, TA Securities valued EcoSys at 17 times its calendar year 2027 forecast earnings, while noting that the IPO price implies a trailing price-to-earnings ratio of 12.4 times FY25 core earnings.
According to the company’s prospectus, the Penang-based EcoSys provides industrial solutions for the pan-semiconductor industry, covering ultra-high-purity fabrication of precision engineering components and sub-assembly modules as well as abatement systems. Its customers include semiconductor equipment manufacturers, integrated device manufacturers, foundries, solar photovoltaic manufacturers and industrial gas system providers.
TA Securities said EcoSys’ proprietary abatement technologies, in-house research and development capabilities and ISO-certified ultra-high-purity fabrication operations support its competitive position. The company also has established relationships with multinational customers, including a 14-year relationship with a key customer.
The research house expects EcoSys’ core earnings to grow 5.5% to RM13.1 million in FY26, 14% to RM15 million in FY27 and 21.1% to RM18.1 million in FY28. The projections are supported by an unbilled order book of RM94.3 million, business expansion plans and a healthy industry outlook, with exports expected to remain the company’s main revenue contributor.
EcoSys is raising about RM39.3 million from the IPO, with 43.2% of the proceeds earmarked for expanding its abatement segment. Another RM8 million will be used to repay bank borrowings, while funds will also go towards enhancing operational capabilities, expanding its presence in India and supporting working capital.
At 27 sen per share, EcoSys will have an estimated market capitalisation of RM154.3 million upon listing. The IPO involves the issuance of 145.7 million new shares with no offer for sale, while its tentative ACE Market listing date is Oct 14, 2026.
