NVDA
NVIDIA
-- 139.670 TSLA
Tesla
-- 430.600 PLTR
Palantir
-- 80.690 AMD
Advanced Micro Devices
-- 124.600 RGTI
Rigetti Computing
-- 10.9600 
Vanzo Holdings Berhad (0333): A Promising Opportunity Amid Market Pullback?
Vanzo Holdings Berhad (0333), a standout player in Malaysia’s air fragrance market, has recently experienced a share price retracement amid broader market uncertainties.
Despite the negative sentiment surrounding its valuation and competition, TA Securities remains optimistic, assigning a target price (TP) of RM0.19, offering a potential 26.7% upside from its IPO price of RM0.15. With its strong fundamentals and growth trajectory, Vanzo presents a compelling investment opportunity at its current levels.
Vanzo has demonstrated impressive growth in a short span, achieving a 13.3% market share in Malaysia within six years. Its revenue has grown at a robust CAGR of 19.6% over the past three years, driven by its flagship brands “Vanzo” and “Vanscent.” The company’s unique selling point lies in its health-focused, plant-based product portfolio, which caters to the rising demand for environmentally friendly and safe air fragrances.
The company’s collaborations with global giants such as Disney and Warner Bros have further bolstered its market position, leveraging popular characters like Marvel superheroes and Batman to enhance brand visibility. With over 300 distributors and a network of 1,900 retailers, including major partners like Watson, Aeon, and Mr DIY, Vanzo’s market reach is extensive.
Vanzo’s financials remain strong:
– FY23 PAT grew by 19.2% YoY to RM5.1 million.
– Gross profit margin is consistently high, indicating effective cost management.
– Dividend yields for FY24-FY26 are projected at 2.1%-2.6%, providing additional returns to investors.
At a forward price-to-earnings (PE) ratio of 14.3x FY24 EPS, Vanzo is attractively priced compared to its regional peers’ average of 25.3x, suggesting significant upside potential. The stock’s recent pullback offers investors a chance to accumulate shares at a discount, with TA Securities reaffirming its positive outlook.
While Vanzo’s prospects are promising, investors should be aware of key risks:
– Competitive Landscape: The air fragrance market is highly competitive, with low barriers to entry.
– Economic Sensitivity: As a consumer discretionary product, demand could fluctuate with economic cycles.
– Regulatory Risks: Compliance with environmental and safety regulations could impact production costs.
Vanzo is not resting on its laurels. The company plans to:
– Open four new kiosks by 1H 2026, enhancing its retail presence.
– Invest in digital marketing campaigns to reach younger audiences through social media and electronic billboards.
– Launch co-branded product lines with Warner Bros, further diversifying its offerings.
Additionally, the company’s post-IPO financial position will see its gearing improve from 0.64x to 0.22x, providing the flexibility to pursue growth initiatives without significant financial strain.
Looking ahead, Malaysia’s air fragrance market is projected to grow at a CAGR of 9.0%, reaching RM387.5 million by 2026. Vanzo’s focus on plant-based, health-conscious products aligns well with this growing trend. Its position as a market leader provides it with a competitive advantage to capture a larger share of this expanding market.
The recent retracement in Vanzo’s share price is more reflective of short-term market sentiment than its underlying value. With a strong financial foundation, strategic growth plans, and a fair valuation at RM0.19 by TA Securities, the company offers a clear path for long-term growth.
For investors looking to capitalise on a high-growth company in a resilient and expanding market, $VANZO (0333.MY)$ current price presents an attractive entry point. While risks exist, the company’s innovative strategies and robust market presence position it well to deliver sustainable value in the years to come.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
晴瓦林 : Not a single person in the right mind looking at the interest coverage ratio, EV/FCF, and ROA would say, "yep, this is overvalued. They can't pay off their debt and would like to dilute equity to pay off liabilities." And Vanzo managed to stabilize the margins while slightly increasing their revenue at the same time.
晴瓦林 : Just load Vanzo up in your portfolio after the market FUD.
Keol90 晴瓦林 : how much do you charge per post push?
晴瓦林 Keol90 : I don't charge per post, but I'm taking around RM 100 per year to post.