Initiate coverage with BUY and target price of RM1.60, based on 20.0x 2024F PE which is trading on a par with its closest industry peers’ average forward PE. Listing at 15.0x 2023F PE with an IPO price of RM0.90, CAPE has ample upside from here and we also expect a three-year net profit CAGR of 32% from 2022. Meanwhile, such an undemanding PE represents a 40-50% discount from its closest peers – Aurelius Technologies and NationGate. Blue-sky valuation if pricing CAPE at 1x PEG ratio suggests a potentially higher target price of RM1.98 (at 25x 2024F PE).

From UOB.