CKH Holdings operates in the automotive sector.

CKH Holdings Bhd (CKH) is expected to achieve double-digit growth between 2024 and 2026, with annual revenue expected to exceed 0.14 billion ringgit supported by capacity expansion, sustainable local brands, and government incentive measures.

Analysts predict that the company's revenue will grow by 3.2-14.1% to 0.1178 billion to 0.1414 billion ringgit, while core net income is expected to increase by 12.6-19.3% to 6.6 million to 8.6 million ringgit during the 2024-2026 period.

CKH Holdings' stock has a fair value of RM0.285 and is expected to debut on October 8 at a listing price of RM0.20, which is RM0.085 or 42.5% higher.

CKH Holdings is engaged in the manufacturing and distribution of auto parts, including body components, seat structures, engine parts, and shock absorbers.

According to reports, KHPT plans to use more than 70% of the proceeds from its initial public offering of about 21 million ringgit to install stamping machinery and automation equipment, with completion expected within 24 months.

KHPT is a long-term supplier of Malaysia's national auto brands Proton and Perodua, which are the main drivers of growth in the auto parts industry. In 2023, Perodua remains Malaysia's largest auto brand with a 41% market share, followed by Proton at 19%. Together, Proton and Perodua hold nearly 60% of the market share. Japan's auto manufacturers Toyota and Honda collectively hold 23% of Malaysia's auto market.

According to data from the Malaysian Automotive Association (MAA), Perodua sold 169,849 cars in the first half of 2024, a 17.4% year-on-year increase compared to 2023. During the six-month period, its market share also grew by 4% to reach 43.5%.

It is expected that by 2024, these two brands will hold a 67.8% market share in the passenger vehicle sector and contribute 62% of the total industry sales volume (TIV), meaning total auto sales. Auto parts suppliers such as KHPT, with almost 30 years of industry experience, will benefit from sustainable growth and cross-model parts standardization.

Furthermore, Malaysia positions itself as a competitive center in the auto manufacturing industry by offering various industrial incentive measures. These measures include full excise and sales tax exemptions for CKD electric vehicles (EVs) until 2027, import duty exemptions for CBU electric vehicles until 2025. These measures aim to reduce costs for electric vehicle assemblers and may lead to higher local content, thereby driving demand for KHPT's expertise and auto parts.