Apex thinks the case for Panda Eco is very black and white
Category
🗞
NewsTranscript
00:00 We start this week with an upcoming IPO, retail ecosystem specialist, Panda Ecosystem,
00:06 which is due to list on the ACE market at the end of this month.
00:10 Apex Securities has a subscriber in the company with a 23 cent target price, which is 44%
00:16 higher than its 16 cent IPO price.
00:19 Founded in 2003, Panda principally is involved in the development, customization, implementation
00:24 and integration of retail management ecosystems.
00:28 Panda's customer base has grown steadily from 8 retailers in 2010 to 137 retailers in 2023.
00:35 Breaking it down, the bulk of its IPO proceeds will go towards R&D of new solutions, regional
00:41 ASEAN expansion, establishing of additional service hubs and expanding its workforce and
00:46 expanding its HQ, among others.
00:49 In fact, to expand their reach into the ASEAN region, the group plans to open a new service
00:53 hub in both Indonesia and the Philippines by 2025.
00:57 Given the prospects in these countries, this makes their proposed expansion a strategic
01:01 move for the group to diversify their presence regionally.
01:05 Panda's strong financial track record, with a revenue expanding from $4.2 million in FY14
01:11 to $28.1 million in FY22, demonstrates the resilience of their business model.
01:17 Apex actually projects the core earnings to improve from sequential additions of new customers
01:22 across all its business segments.
01:24 Based on the latest crop of reports on Panda Eco, only Apex has a subscriber while PIVB
01:29 and TA all have fair values but no recommendations.
01:32 Taking that into account, the average target price works out to $0.205, which is $0.45
01:38 more than its IPO price.
01:40 [music]