Pan Merchant eyes mining, water filter markets to grow market share

The Edge Malaysia - 26 June 2025 View original article

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KUALA LUMPUR (June 26): Industrial filter manufacturer Pan Merchant Bhd (KL:PMIBHD) is looking to grow its global market share by expanding into the mining and water filtration sectors, which jointly made up half of the global solid-liquid filtration industry.

Citing findings from an independent market research report, executive director Wong Nyeon Thiat said the mining and potable water and wastewater industries collectively accounted for over 50% of the global solid-liquid filtration market in 2023.

In comparison, the edible oil industry — Pan Merchant’s core segment — represented just 5.8% of the global market. It remained the group’s largest revenue contributor, accounting for RM102.54 million in its financial year ended Dec 31, 2024 (FY2024).

“We may be a small player in the industry today, but we intend to grow this industry from 0.5% of the world's market share, to reach at least 2% to 3% in the next few years. I think that would be our first target,” Wong said at a press conference after the company’s listing ceremony on Thursday.

In the edible oil industry, the solid liquid filtration equipment is use for edible oil refining processes to remove bleaching clay, to facilitate fractionation (to form olein and stearin) and winterisation processes (to separate components into fractions that have different melting points), and to remove impurities. The example of edible oil includes palm oil, soybean oil, sunflower oil and coconut oil.

Pan Merchant is mainly involved in the design, manufacture, assembly and commissioning of filters for solid liquid filtration, the provision of steel works, as well as technical support services.

In FY2024, the group posted a revenue of RM141.54 million. The filter presses and hermetic filters collectively contributed 68.71% to its turnover for FY2024, while the steel works segment contributed 12.11%, whereas the technical support services division contributed 19.18%.

Commenting on the US tariff, Wong said the 24% duty imposed on Malaysian products — compared with 20% on European imports, where the group’s competitors are based — results in only a 4% differential, which she described as manageable given the group’s competitive pricing and margins.

Nearly 90% of the group revenue in FY2024 is from export markets. The US market accounted for almost 20% (RM27.71 million) of the group’s total revenue.

Wong said the IPO was aimed at enhancing the group’s corporate profile, especially as it begins competing in industries such as mining, potable and wastewater industries.

“When we go out and compete in the new industries, we need the company to have a very strong corporate profile,” she said.

“Our peers and competitors in this industry, mainly from Europe, are all publicly listed companies in their own countries,” she added.  

The group’s order book stood at RM69.6 million as of May 6, comprising orders for filtration equipment, replacement parts, and steel works. The order book is expected to be fulfilled within the next 12 months.

The IPO, which was priced at 27 sen per share, raised about RM63 million for Pan Merchant and close to RM5 million for the sole selling shareholders Budhi Sentoso Rachmat, a co-founder of Pan Merchant’s subsidiary PMI-Technology Sdn Bhd.

Out of the total proceeds raised from new shares, RM28 million will be utilised for capital expenditure on manufacturing plants, including the acquisition of machinery, equipment, and tools, as well as renovation of its manufacturing facilities.

A further RM7 million will be allocated for product development, and the remaining for business expansion, working capital, and defraying of listing expenses.

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