PublicInvest sets 22 sen fair value on Yes Group, sees 17pct profit growth

PublicInvest has estimated a fair value of 22 sen for Yes Group Management Bhd, a newly listed company. The assessment is based on factors such as the company's expansion into Europe, talent development programs, and the growth of its Malaysia My Second Home (MM2H) business. Analyst Lee Siao Ping predicts a compound annual growth rate (CAGR) of around 17% in the company's net profit over the next three years.

By FY29, PublicInvest projects Yes Group's net profit to reach RM12 million, driven by the European expansion, talent development, and MM2H segment growth. The fair value assessment uses a 12 times price-to-earnings ratio (PER), which is 10% lower than the local peer's PER of around 13.5 times. The discount is attributed to Yes Group's smaller market capitalisation and business scale.

Yes Group is set to establish a regional office near London Heathrow Airport and acquire vehicles for incentive travel and ground transportation services in the UK. The company also plans to expand its MM2H segment by leveraging its MICE expertise. Yes Group completed 403 incentive travel engagements between FY23 and FY26, with 40.4% of its clientele being repeat private sector corporate customers.

As of October 9, the company had an unbilled order book of RM34.6 million, primarily consisting of customised incentive travel engagements in Europe and Asia. The company's financial position shows a promising improvement in its gross gearing ratio, expected to reach 0.01 times post-listing, from 0.02 times.