Panda will be utilising its IPO proceeds to expand (i) cloud-based modules and expand its offerings, (ii) its workforce within Malaysia to respond to issues in Central and Northern regions, and (iii) regionally to Indonesia and Philippines. Thus, we expect the core PATAMI to grow at 3.0-9.4% to RM7.3-7.9m in FY23-24f. Panda is priced at RM0.16 for its IPO, which is trading at 15.2x based on FY22 EPS, while FY23-24f are estimated at 14.8x and 13.5x. We arrived at our fair value of RM0.215 (34.4% upside from its IPO price) by ascribing a target P/E of 18.0x to FY24f EPS of 1.2 sen, which represents a discount of 39.6% from the peers’ average P/E of 29.8x.