Shares of THMY Holdings Berhad surged another 11% to RM1.90 on June 16, smashing through previous highs and extending a rally that has now returned more than 500% since the Penang-based firm priced its ACE Market IPO at RM0.31 last October. The stock's roughly 400%-plus surge since listing is one of its kind on Bursa Malaysia. The question investors must now confront: does a 108-employee test-equipment maker deserve the valuation of a blue-chip tech firm?

  • A Blockbuster Debut Set the Stage for Speculative Momentum. THMY's share price nearly tripled on its first day of trading, opening at 80 sen and closing at 91 sen — marking the best debut on the ACE Market in two years.

Retail investor applications exceeded available shares by nearly 36 times during the IPO. That frenzy has never fully cooled. At RM1.90, the stock now trades at roughly six times its IPO price, a level no analyst publicly forecast.

  • The Earnings Can't Keep Up With the Share Price. Today, the stock trades at a historical price-to-earnings ratio of 111.1 times, making it the most expensive technology stock on Bursa Malaysia. That ratio — which measures how many years of current profit you'd need to justify the price — looks extreme for a company that posted cumulative full-year revenue of RM62.82 million and net profit of RM13.54 million for FY2026. At RM1.90 with roughly 887 million shares outstanding, the implied market cap exceeds RM1.6 billion — more than 120 times trailing profit.

  • A New Factory Could Quadruple Capacity — But Not Until 2029. Of the RM44.6 million raised from the IPO, 58.6% is allocated to constructing a new factory in Batu Kawan that, once completed by mid-2029, will quadruple test system capacity. That's a real growth catalyst, but the payoff is three years away, and it depends on sustained AI-driven demand for circuit board testing from multinational clients.

  • AI Tailwinds Are Real, But the Company Is Tiny. Profit after tax expanded at a compounded annual growth rate of 96.6% between FY2022 and FY2025, rising from RM1.3 million to RM10 million.

Analysts project a three-year earnings growth rate of roughly 24.8%. That pace is healthy but nowhere near enough to justify a triple-digit P/E. The average analyst 12-month price target sits at just RM0.68 — roughly 64% below today's price, signaling a stark disconnect between Wall Street math and retail enthusiasm.