Signature Alliance's ACE Market debut nets RM161mil

The Star

05-06-2025

From left: SAG group chief financial officer Saw Gee Kai, independent director Datuk Boey Chin Gan, independent director Tan Poh Cheok, independent director Lim Sook Yee, promoter and CEO for central region Melvin Ng, executive director and CEO of northern region Mario Foo, executive director and group CEO Darren Chang, promoter Chiau Haw Choon, chairman Datuk Wan Ahmad Satria Wan Hussein, M&A Equity Holdings Bhd Datuk Bill Tan, promoter Datuk Seri Chiau Beng Teik, Chin Hin Group chief financial officer Michael Lim, SAG director Lau Kock Sang and M&A Securities Sdn Bhd head of corporate finance Gary Ting.
KUALA LUMPUR: Signature Alliance Group Bhd (SAG) expects to deliver double-digit growth in net profit for the financial year ending Dec 31, 2025 (FY25), underpinned by its robust unbilled order book and tender book.
As at April 16, 2025, the interior fit-out solutions provider had a total unbilled order book of RM388.6mil, which will be realised progressively over the next one to two financial years.
The group has 69 ongoing projects with a total contract value of RM902.4mil.
SAG also has a tender book of RM1.1bil, comprising primarily commercial and industrial property projects.
Its executive director and group CEO Darren Chang said the company is confident of securing between 15% and 20% of these tenders by end-2025.
'Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he told the media following the listing ceremony.
For FY24, the group's net profit rose nearly four-fold year-on-year (y-o-y) to RM40.6mil, on the back of a higher gross profit and a net gain on the impairment of financial and contract assets.
Revenue more than doubled y-o-y to RM386.02mil in FY24.
SAG provides interior fit-out services for different types of premises in the commercial, industrial and residential sectors.
In FY24, the commercial segment accounted for the bulk of the group's revenue at 75.2%, followed by the industrial segment at 18.4%, and residential at 6.4%.
In terms of pursuing new customers, Chang noted that the group will focus more on the commercial and industrial segments.
The company has many repeat customers in the residential segment and will continue to support them when they return with other projects.
'However, residential projects are not our main focus. Our focus remains on commercial projects such as hotels, corporate offices, shopping malls and retail brand spaces,' he said.
SAG made its debut on the ACE Market of Bursa Malaysia yesterday, opening at 68 sen per share – six sen higher than its initial public offering (IPO) price of 62 sen. The opening volume was 8.9 million shares.
The stock closed its maiden trading day at 70 sen. It hit a high of 72 sen and a low of 67 sen during intraday trade.
SAG raised RM161.2mil from the public issue of 260 million new shares.
The bulk of the proceeds raised – RM88mil – is earmarked for setting up a new corporate office and a 50,000 sq ft production facility in Selangor.
Another RM4mil will be used to purchase machinery and equipment, while RM12mil will go towards expanding its existing Penang office and establishing a new branch office in Johor.
Meanwhile, RM30.1mil is allocated for working capital.
A further RM20mil is set aside for the repayment of bank borrowings, and the remaining RM7.1mil will be used to defray estimated listing expenses.
According to Chang, there is a lot of ongoing development in Penang, where the company already has an office and plans to expand it to serve more customers.
Previously, the company was not fully equipped financially to pursue new clients, but with the proceeds from its listing, it is now well-positioned to seek new customers in Penang.
'There is also a lot of ongoing development in Johor as well. For instance, the Johor Baru-Singapore Rapid Transit System Link project is nearing completion.'
Chang explained that now is the right time for the company to return to Johor and expand its business there.
Currently, the group operates two production facilities in Bandar Baru Bangi and Puchong, Selangor.
SAG intends to centralise its production activities and improve overall efficiency by relocating both facilities to the new planned production facility in Klang.