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Malacca Securities assigned a fair value of 29 sen to Guan Huat Seng, based on a price-to-earnings ratio of 15 times its earnings per share of 1.95 sen for mid-financial year 2026.
A stronger ringgit is a plus for GUAN HUAT SENG. As the local currency appreciates, it should help reduce the cost of goods purchased and ease some cost pressure
Guan Huat Seng Holdings Berhad is a steady food distributor with in-house manufacturing, projecting a 3-year earnings CAGR of 13.3% and core PATMI of RM8.8–10.5m, supported by its wide SKU base, strong distribution network, and near-peak utilisation. Fair value is RM0.29 (15x FY26F PER), implying ~16% upside plus ~2% dividend yield from the RM0.25 share price. Margins have improved (GPM up from 16.1% in FY22 to 25.1% in FY25), while a stronger Ringgit should ease costs given ~40% FX exposure. ~70% of IPO proceeds (~RM21m) will be used for capacity expansion to support more sustainable growth post-listing.
GHS Holdings has an established track record in Malaysia's distributive trade of food and beverage ("F&B") product industry and a wide distribution network, supported by an experienced management team that position it well to capture opportunities in the industry.
The distributive trade of F&B product industry in Malaysia recorded a compound annual growth rate ("CAGR") of 7.6% between 2022 and 2024, with growth for 2026 projected at 5.0%, driven primarily by the retail segment fuelled by seasonal sales and promotions across physical stores, social media and online shopping platforms. In 2026, the food, beverages and accommodation subsector is expected to grow by 6.6%. This is supported by an anticipated increase in tourist arrivals for business and leisure, as well as meetings, incentives, conferences, and exhibitions (MICE) activities, in line with the Malaysia Government's Visit Malaysia 2026 campaign.
This company will ride on VM 2026. On top of that, Fan Bingbing becoming Melaka’s ambassador has helped lift tourism there. I think this IPO has good potential
GUAN HUAT SENG has been around since 1938 and is already well known among both locals and tourists in Melaka. That’s one seriously long-established business!
Guan Huat Seng is primarily involved in the distributive trade of food and beverage products, including shelf-stable and frozen seafood, flavouring products, dried foods, snacks and general groceries.
The group also manufactures its own flavouring products such as sauces, pastes and seasonings, which it distributes domestically and to selected overseas markets.