Golden Destinations Group Bhd, an outbound travel package provider preparing for an ACE Market listing, has been assigned a fair value of 50 sen by Public Investment Bank, suggesting an 11.1% upside from its IPO price of 45 sen.
In a note on Wednesday, PublicInvest said the valuation was based on a 15‑times price-to-earnings multiple of GDGROUP’s projected FY2027 earnings, reflecting a discount to the FTSE Bursa Malaysia Consumer Products Index to account for lower liquidity as an ACE Market stock.
The group, known for its flagship Golden Destinations brand, operates mainly as a B2B travel wholesaler, offering ready-to-sell overseas travel packages to a network of 848 licensed travel agents nationwide. Its portfolio includes over 2,500 travel packages and 293 cruise products across 84 countries.
Unlike direct-to-consumer platforms, GDGROUP focuses on product development and service delivery while leveraging its travel agent network for distribution.
PublicInvest highlighted that the company is well-positioned to benefit from the rebound in Malaysia’s outbound tourism, with total spending reaching RM30.3 billion in 2024, supported by improving international mobility and higher disposable income.
Financially, GDGROUP recorded RM592.4 million in revenue for FY2025, up from RM157 million in FY2022, representing a three-year compound annual growth rate (CAGR) of 55.7%. Net profit is forecast to grow from RM27 million in FY2025 to RM34 million by FY2028, driven by stronger margins and regional expansion.
The IPO, expected to raise RM90 million, will see RM50 million allocated for a new centralised headquarters in Kuala Lumpur, RM13.5 million for branding and marketing, and the remainder for expansion into Sarawak and Singapore, IT upgrades, workforce growth, and working capital.
PublicInvest noted that GDGROUP’s asset-light, variable-cost model provides resilience against seasonal fluctuations and demand disruptions. However, it flagged risks including geopolitical tensions, disease outbreaks, seasonal demand swings, and rising competition from online travel platforms and AI-based trip planning tools.
GDGROUP is scheduled to list on Bursa Malaysia’s ACE Market on April 16, with an enlarged market capitalisation of RM450 million based on the IPO price.
