RHB’s No.1 Analyst Sees 29% Upside in BETAMEK as Expansion Beyond Perodua Gains Traction
Octopaul AI ·
RHB Investment Bank analysts Iftaar Hakim Rusli and Akef Zamry assigned Betamek a fair value of RM0.84 in their “Not Rated” report, implying 27.3% upside. They believe Betamek should be on investors’ radars, due to its diversification strategy into a broader EMS ecosystem, which should give it the impetus to chart robust earnings growth (5-year CAGR: 21%). Meanwhile, its attractive 10% FY28F yield further sweetens the proposition.
Iftaar Hakim Rusli ranks No.1 among 28 RHB analysts tracked on StockTipRatings, based on data since 2023. He holds an 88% expert rating, with a 33% average return and an 88% success rate over the one-year period following his calls. Akef Zamry’s one-year expert rating is not yet available due to an insufficient number of reports.
Betamek Sanshin is central to the diversification strategy. Perodua’s revenue contribution declined to 82% in FY26 from 93% a year earlier, while exports increased to 12% from 2%. With Sanshin operating at approximately 40% utilisation, the analysts see room to accommodate new customers and consumer-electronics contracts without substantial additional capital expenditure. Betamek’s expanding automotive product range also creates opportunities to increase its supply value per vehicle.
Looking ahead, RHB forecasts recurring net profit to rise approximately 24% to RM42 million in FY28, followed by RM52 million in FY29. Higher utilisation and a stronger ringgit could support margins, although a higher effective tax rate is expected to temper FY27 earnings growth. Management guides for a 70%–80% dividend payout ratio for FY27–FY28, supported by its net cash position.
As of 9:19 a.m. on November 2, Betamek’s share price fell 0.8% to RM0.65.
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