Cropmate Berhad is set to debut on the Bursa Ace Market on 5 Dec 2024 with Rakuten projecting the company to register core net earnings of RM12.3m, RM15.4m, and RM17.5m for FY24F- FY26F. Based on this the investment house is giving the IPO a fair value (FV) of RM0.32, premised on a weighted average 15x PER over FY25F EPS, which it said aligned with comparable listed peers.

The company offers 18 standard and 14 specialty fertilizer formulations, marketed under the "Dua Daun" and "CM Miracle"
brands, along with customized options for crops like oil palm and durian. Enhanced with biostimulants and microbes, these
fertilizers support all growth stages, improve soil health, and boost yields, establishing itself as a trusted provider of
sustainable, tailored solutions in both local and global markets. It aims to improve efficiency by automating its weighing
process with a Process Control System (PCS) and conveyor belt, reducing manual labour from three workers to one.

The company is also setting up an in-house R&D lab to streamline testing, lowering costs, and drive growth of its higher-margin specialty fertilizers. All said, RM16.7m from IPO proceeds will fund the acquisition of leased factories alongside investments in new equipment and vehicles to enhance efficiencies.
CRPMATE has a dividend policy of 30% payout from its net profit. Based on estimates, CRPMATE is expected to pay 0.6sen and 0.7sen for FY25 and FY26, translating into yields of 3.1% and 3.6%, respectively. CRPMATE currently is in a net cash position
and expected to persist post-IPO.