Public Investment Bank has initiated coverage on Camaroe Bhd, assigning a fair value of RM0.18 per share, representing a potential upside of 28.5% from its IPO price of RM0.14. The prawn aquaculture group is slated to debut on the ACE Market of Bursa Malaysia on 2 October 2025.
Integrated Black Tiger Prawn Specialist
Camaroe is principally involved in the farming and processing of premium black tiger prawns. The company operates 149 saltwater ponds across farms in Selangor, Pahang and Terengganu, supported by a processing facility in Kapar, Selangor. Its products are mainly exported to China, South Korea and Taiwan, typically under customised packaging for wholesalers and importers.
With 15 years of operating history, Camaroe’s vertically integrated model allows it to control the entire supply chain, from pond to processing, ensuring quality, biosecurity and consistency in supply. In FY2024, the group held 25.8% market share of Malaysia’s black tiger prawn exports.
Industry observers point out that black tiger prawn farming carries high entry barriers, requiring significant capital, biological know-how and years of refinement. This makes it a selective industry where few players can sustain consistent, premium-grade output. Camaroe has overcome these challenges through its integrated model and long-term investment in infrastructure.
Growth Plans and Expansion
Proceeds from the IPO, totalling RM13.9 million, will primarily be channelled into:
- Construction of a new processing facility in Bandar Bukit Raja, Selangor, which will more than double processing capacity from 684MT to 1,539MT.
- Establishment of an in-house biotechnology department for R&D in areas such as post-larvae quality control and probiotic formulations, potentially opening new revenue streams in the future.
- Working capital and listing expenses.
The new Bukit Raja facility is scheduled for completion in 2028, and will feature automation systems and rooftop solar panels to improve efficiency and sustainability.
Camaroe is also certified under myGAP, HACCP, GMP, MeSTI, and has obtained NSF Antibiotic-Free certification across its farms and processing facility. This strengthens its positioning in export markets where food safety and traceability are increasingly critical, allowing the company to command premium pricing.
Financial Performance
From FY2021 to FY2024, Camaroe’s revenue grew modestly from RM38.2m to RM39.8m, underpinned by a strategic pivot from domestic live prawn sales to export-driven frozen prawn products. Overseas sales rose from 37.7% of revenue in FY2021 to 76.0% in FY2024.
Adjusted net profit came in at RM7.7m in FY2024, with PublicInvest projecting earnings to grow at a three-year CAGR of 8%, reaching RM9.8m by FY2027F. Margins are expected to remain healthy at around 33%, supported by operational efficiency and biotechnology initiatives.
The group’s antibiotic-free premium positioning also supports strong gross profit margins, with customers willing to pay more for safety-assured, traceable seafood.
Valuation and Risks
PublicInvest values Camaroe at 10x FY2026F EPS, applying a discount to peers’ average PER of around 12x due to its smaller market capitalisation. Key downside risks include:
- Intense industry competition and potential substitution by other seafood products.
- Disease outbreaks such as White Spot Syndrome Virus (WSSV).
- Fluctuations in foreign exchange rates, given its exposure to USD and RMB.
- Heavy reliance on contract and joint-venture farming arrangements, which accounted for about two-thirds of production in FY2024.
Management depth is another factor supporting investor confidence. The group is helmed by Managing Director, Teoh Han Boon, with nearly three decades of aquaculture experience, and Executive Director, Low Saw Cheng, with over 20 years in finance and operations. Their leadership has been instrumental in building Camaroe into a leading aquaculture name.
Outlook
The research house is positive on Camaroe’s prospects, citing steady demand growth for premium seafood in Asia-Pacific markets and the group’s compliance with international food safety standards. With high entry barriers protecting the industry, antibiotic-free certifications enhancing export appeal, and expansion into biotechnology and processing automation, Camaroe is well-positioned to sustain margins and strengthen its footprint in global premium seafood markets.
