Golden Destinations IPO Seen Offering 13% Upside On Strong Travel Demand
Golden Destinations Group Berhad is poised for steady earnings growth over the next three years, driven by rising demand for outbound travel across Asia and strategic regional expansion, according to an IPO note by M+ Global.
The research house projects the group to deliver a three-year earnings compound annual growth rate (CAGR) of 6.9%, with core profit after tax and minority interest (PATMI) expected to reach between RM31.0 million and RM34.6 million.
Golden Destinations is a full-service outbound travel curator, offering packaged tours, cruise itineraries and customised free independent traveller (FIT) experiences. The group also provides ticketing services as an accredited International Air Transport Association (IATA) agent, alongside ancillary services such as hotel bookings and visa processing.
Growth driven by Asia travel recovery
M+ Global said earnings growth will be supported by increasing travel demand, particularly to China and other Asia-centric destinations, as regional tourism continues to normalise.
The company is also expected to benefit from its expansion into Singapore, which could broaden its customer base and strengthen its regional footprint.
In addition, pent-up demand for international travel following geopolitical disruptions, including tensions in the Middle East, is likely to support outbound travel activity.
Valuation implies upside potential
M+ Global has assigned a fair value of RM0.51 per share for Golden Destinations, representing a 13.3% upside from its IPO price of RM0.45.
The valuation is based on a price-earnings (PE) multiple of 16 times, pegged to its mid-forecast FY2027 earnings per share of 3.17 sen.
Outlook remains positive
The research house said Golden Destinations is well-positioned to capitalise on the continued recovery in global travel, supported by its diversified travel offerings and strong positioning in key Asian markets.
However, it noted that the group’s performance remains sensitive to external factors such as geopolitical developments, travel restrictions and currency fluctuations, which could impact consumer travel sentiment.
