Panda Eco System's Revenue To Grow To Rm23.1 Mln In Fy2024 -- Analyst

KUALA LUMPUR, Nov 27 (Bernama) -- Malacca Securities Sdn Bhd forecast retail management solutions provider Panda Eco System Bhd’s financial year of 2024 (FY2024) revenue to grow at a two-year compound annual growth rate (CAGR) of 5.0 per cent to RM23.1 million from RM21.0 million in FY2022.

It said that Panda’s core profit after tax and minority interests (Patami) will increase at a two-year CAGR of 6.1 per cent from RM7.0 million in FY2022 to RM7.9 million in FY2024.

“It is supported by its regional expansion in Malaysia and Asean countries by 2025, providing new solutions and cross-selling of current services to existing and new clients,” Malacca Securities said in a note. 

Malacca Securities said Panda recorded consistent revenue growth FY2020-FY2022 from 16.4 million to 21.0 million, but the core Patami stood at RM6.9 million, RM6.1 million and RM7.0 million across FY2020-2022.

It said that with the exclusion of the one-off disposal gain in FY2021, Panda's core Patami was lower at RM6.1 million, mainly due to the increase in tax expense from Panda Software in accordance with the statutory tax rate.

"Following the retail expansion trail, Panda will be utilising its initial public offering (IPO) proceeds to expand cloud-based modules and expand its offerings; its workforce within Malaysia to respond to issues in central and northern regions, as well as regionally to Indonesia and the Philippines.

“Thus, we expect the core Patami to grow at 3.0-9.4 per cent to RM7.3-7.9 million in FY2023-2024,” the firm said.

Meanwhile, Panda commenced trading on the ACE Market of Bursa Malaysia with an opening price of 29 sen, reflecting a premium of 81 per cent over the IPO price of 16 sen per share.

During the listing ceremony, Panda executive director and chief executive officer Loo Chee Wee said the retail industry is constantly undergoing transformative shifts driven by changing consumer expectations, technological advancements and intensified competition.

He said that to remain relevant and ahead of the curve, retailers must embrace technology and implement robust solutions to enhance their operations.

“Our solutions aim to facilitate efficient expansion and scalability, supporting retailers in overcoming the complexities inherent in the industry and meeting the dynamic expectations of both consumers and suppliers.

“The proceeds of RM17.5 million will propel our next growth phase,  enabling us to invest in research and development of new solutions, expand our market presence, and continue advancing, thereby solidifying our position as a home-grown Malaysian software company,” he said in a statement.

At 10.55 am, Panda rose 12 sen to 28 sen with 151.32 million shares changing hands.

-- BERNAMA