Polymer Link Holdings Berhad IPO's Analysis
Polymer Link Holdings Berhad
Polymer Link Holdings Berhad, through its subsidiaries, is primarily engaged in the manufacturing of plastic powder for both general and specialty applications. The Group also manufactures masterbatch and is involved in other activities such as trading of equipment and products, toll manufacturing, and contract roto-moulding. It operates manufacturing facilities in Malaysia, the Philippines, and India, with sales and marketing operations extending to Australia and the USA. The company serves a diverse customer base, with its main products being used in the rotational moulding (roto-moulding) industry to create items like water tanks, cooler boxes, and diesel fuel tanks.
IPO Details
Market:
ACE
Principal Adviser:
Hong Leong Investment Bank Berhad
Issuing House:
Tricor Investor & Issuing House (TIIH)
Shariah Status:
SC (Yes)
Listing Price:
0.25
MITI allocation?:
No
Closing Date:
11-Nov-2025
Balloting Date:
13-Nov-2025
Listing Date:
25-Nov-2025
Oversubscription rate:
48.74x
Average Analysts FV
:
TA (0.31), Mplus (0.32)
iSaham IPO Score
:
Market Cap:
140.00 M
Number of Shares:
560.00 M
( info)
Median Sectors PE:
N/A
Median Peers PE:
Strategic Overview & Data Visuals
Utilisation of Proceeds
| Purpose | Amount (RM'000) | % | |
|---|---|---|---|
| Expansion | Expansion of our Australia operations | 5,030 | 20.7 |
| Expansion | Capital expenditure | 3,610 | 14.9 |
| Working capital | Working capital requirements of our Group | 6,197 | 25.5 |
| Listing expenses | Estimated Listing expenses | 7,449 | 30.7 |
| Debt | Repayment of bank borrowings | 2,000 | 8.2 |
| Total | 24,286 | 100 | |
Analyst Highlights
| Date | Analyst Highlights |
|---|---|
|
11-Nov-2025
Mplus |
|
|
10-Nov-2025
TA |
|
Utilisation of Proceeds
Business Segments
Geographical Segments
Major Customers
Revenue by Financial Year Ended
Profit After Tax (PAT) by Financial Year Ended
Revenue by Financial Period Ended
Profit After Tax (PAT) by Financial Period Ended
SWOT Analysis
Strengths
- Established Track Record: The Group has an established track record of approximately 11 years in manufacturing plastic powder, supported by an experienced management team with strong technical skills.
- Geographical Diversification: Operations in Malaysia, the Philippines, India, Australia, and the USA provide access to large addressable markets and offer backup manufacturing capacity, enhancing business resilience.
- In-house R&D: Possesses in-house R&D and product development capabilities, allowing the creation of customized plastic powder and masterbatch formulations to meet specific customer requirements without relying on third parties.
Weaknesses
- Customer Concentration: Highly dependent on its top two major customers, Outback Philippines and OK Play Group, which collectively contributed 54.7% of the total revenue in FYE 2024. The loss of either customer could significantly impact financial performance.
- Supplier Dependency: Reliant on certain key suppliers, particularly the GC Group and Reliance Industries Limited, for the supply of plastic resins, a critical input material. Any disruption in supply from these sources could impact business operations.
- Declining Cash Position: Cash and cash equivalents have shown a significant declining trend over the last three financial years, falling from RM12.9 million in FYE 2022 to RM2.6 million in FYE 2024, primarily due to investing and financing activities.
Opportunities
- Australian Expansion: Plans to use IPO proceeds to expand operations in Australia by setting up a warehouse, which is expected to reduce order fulfillment times and expand the customer base in a fast-growing market.
- European Market Entry: Intends to expand sales to customers in Poland by appointing a local representative and allocating working capital, aiming to replicate its successful business model in new geographic markets.
- Capacity Enhancement: IPO funds will be used to purchase additional machinery and equipment to increase production capacity for both plastic powder and masterbatch, enabling the group to meet potential future demand.
Threats
- Input Material Price Volatility: The prices of main input materials like plastic resins are influenced by petroleum prices and are subject to global market fluctuations, which could adversely affect business and financial performance if cost increases cannot be passed on to customers.
- Foreign Exchange Risk: Significant exposure to foreign currency fluctuations as over 90% of its revenue is derived from overseas markets, particularly in USD, INR, and PHP, which could materially impact financial results.
- Competition: Faces competition from other manufacturers of similar plastic powders in its operating countries, as well as from foreign competitors who can export their products, potentially leading to price pressure.
Key Highlights
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Conclusion
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