Latest news with #DarrenChang
The Star
5 days ago
- Business
- The Star
Signature Alliance's ACE Market debut nets RM161mil
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.
The Sun
5 days ago
- Business
- The Sun
Signature Alliance expects double-digit net profit growth in FY25
KUALA LUMPUR: Interior fitting-out specialist Signature Alliance Group Bhd expects double-digit net profit growth in financial year 2025 (FY25), driven by projects in the pipeline and market visibility following its debut on the ACE Market. Executive director/group CEO Darren Chang said the company is confident of securing 15% to 20% of its RM1.1 billion tender book by the end of 2025, supported by an unbilled order book of RM388 million. 'Because with the book order that we already have and with the first Q1 (results), I can say that compared to last year, this year should be a double-digit growth,' he told the media after the company's listing today. The tenders primarily comprise commercial and industrial property projects as at April 16. Chang said Signature Alliance currently holds only about 8% market share in Malaysia's interior fit-out sector which means room for expansion. 'We are not only focused in one sector like corporate offices or hotels. We are in all sectors. All sectors have the opportunity for us to work.' As at April 16, Signature Alliance had 69 ongoing projects with a total contract value of RM902.4 million, of which RM388.6 million unbilled. For the first quarter ended March 31, 2025 (Q1'25), Signature Alliance reported a net profit of RM15.8 million on the back of revenue of RM147.2 million. The performance was driven by interior fitting-out works for two major projects – a commercial office property in Bandar Baru Sri Petaling and a commercial hotel property in Tun Razak Exchange, accounting for 38.9% and 11.9% of the revenue respectively. For FY24, Signature Alliance's net profit surged 290.4% to RM40.6 million, from RM10.4 million in FY23. This was attributed to higher gross profit and net gain on impairment of financial assets and contract assets. Revenue for FY24 rose 122.6% to RM386.0 million, from RM173.4 million in FY23. Chang attributed the profit leap in recent years to support from parent company Signature International Bhd, which gave Signature Alliance better financial standing and bargaining power. 'Right after we joined Signature International Bhd, they gave us strong financial backing. With that support, we had better negotiating power with our vendors – allowing us to secure discounts by offering better payment terms, prompt payments, and so on.' 'Following this IPO, we'll continue applying the same strategy, and with our improved brand visibility, we expect more vendors to approach us. This gives us more options and more competitive pricing for our projects.' Signature Alliance made a firm debut on the ACE Market of Bursa Malaysia, opening at 68 sen, 6 sen or 9.7% above its initial public offering (IPO) price of 62 sen. The stock closed at 70 sen, an 8 sen or 12.9% premium over the IPO price, with 90.9 million shares traded. Signature Alliance's listing comes on the back of a fully subscribed IPO, with its public portion oversubscribed by 1.12 times. The offering raised RM161.2 million through the issuance of 260 million new shares at 62 sen apiece, giving the company a market capitalisation of RM620 million at listing. Of the proceeds, RM88 million (54.6%) will be used to establish a new corporate headquarters and centralised production facility in Selangor, RM30.1 million (18.7%) toward working capital, RM20 million (12.4%) to repay bank borrowings, RM12 million (7.4%) to set up branch offices in Penang and Johor, RM4 million (2.5%) for new machinery, and RM7.1 million (4.4%) to cover listing expenses. M&A Securities Sdn Bhd is the adviser, sponsor, managing underwriter, joint underwriter and joint placement agent while Affin Hwang Investment Bank Bhd is the joint underwriter and joint placement agent for Signature Alliance's IPO.
BusinessToday
5 days ago
- Business
- BusinessToday
Signature Alliance Debuts 8% Higher
From left: Saw Gee Kai, Group Chief Financial Officer of SAG; Dato' Boey Chin Gan, Independent Director of SAG; Tan Poh Cheok, Independent Director of SAG; Lim Sook Yee, Independent Director of SAG; Melvin Ng, Promoter and CEO for Central Region, SAG; Mario Foo, Executive Director/CEO – Northern Region of SAG; Darren Chang, Executive Director/Group CEO of SAG; Chiau Haw Choon, Promoter of SAG; Datuk Wan Ahmad Satria Wan Hussein, Chairman of SAG; Datuk Bill Tan, Managing Director of M & A Equity Holdings Berhad; Datuk Seri Chiau Beng Teik, Promoter of SAG; Michael Lim, Group Chief Financial Officer of Chin Hin Group Berhad; Lau Kock Sang, Director of SAG; and Gary Ting, Head of Corporate Finance at M & A Securities Sdn Bhd. Signature Alliance Group Bhd (SAG) made a firm debut on the ACE Market of Bursa Malaysia this morning, opening at 68 sen and recording an 8.87% gain to 67.5 sen as of 9.03am. The construction and interior fit-out firm saw 256.9 million shares changing hands, making it one of the most actively traded counters at the opening bell. It hit a high of 69.5 sen and a low of 67 sen in early trade, with buy and sell volumes remaining strong. SAG's listing comes on the back of a fully subscribed IPO, with its public portion oversubscribed by 1.12 times. The offering raised RM161.2 million through the issuance of 260 million new shares at 62 sen apiece, giving the company a market capitalisation of RM620 million at listing. Darren Chang, Executive Director/Group Chief Executive Officer of SAG, said the company is confident of securing between 15% and 20% of its RM1.1 billion tender book by the end of 2025. 'The tenders primarily comprise commercial and industrial property projects valued at RM1.1 billion as at April 16, 2025. Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he added. Speaking to reporters after SAG's Listing Ceremony, Mr Chang noted that the Company's earnings visibility for the financial year ended 31 December 2025 ('FY25') and FY26 will be supported by an unbilled order book of RM388.6 million as at 16 April 2025, in addition to anticipated contract wins. As at April 16, 2025, SAG has 69 ongoing projects with a total contract value of RM902.4 million. 'Our current ongoing projects of RM902.4 million, of which RM388.6 million unbilled, clearly reflects market demand for our interior fitting-out services and provides earnings visibility for the next one to two financial years,' Mr Chang further added. For the first quarter ended 31 March 2025 ('1QFY25'), SAG reported a net profit of RM15.8 million on the back of revenue of RM147.2 million. The strong performance was driven by interior-fitting out works for two major projects – a commercial office property in Bandar Baru Sri Petaling and a commercial hotel property in Tun Razak Exchange, accounting for 38.9% and 11.9% of the revenue respectively. The company posted a gross profit ('GP') of RM29.1 million during the quarter, with GP margin of 19.8%. No comparative figures were available as it was the first interim financial report released by the Company in relation to its financial results, in compliance with the listing requirements. For FY24, SAG's net profit surged 290.4% to RM40.6 million, from RM10.4 million in FY23. This was attributed to higher GP and net gain on impairment of financial assets and contract assets. Revenue for FY24 rose 122.6% to RM386.0 million, from RM173.4 million in FY23. Under the listing exercise, SAG raised RM161.2 million from its Public Issue of 260 million new shares at RM0.62 per share. No existing shares were offered for sale. Of the total proceeds, RM88.0 million (54.6%) will be used to establish a new corporate office as its new headquarters and a production facility to centralise its production activities in Selangor. A further RM30.1 million (18.7%) of the proceeds will be used for working capital purposes to meet the working capital requirements for its interior fitting-out projects. The remainder of the proceeds will be used to repay bank borrowings amounting to RM20.0 million (12.4%); RM12.0 million (7.4%) to expand and establish branch offices in Pulau Pinang and Johor to strengthen the Company's presence regionally in Peninsular Malaysia; RM4.0 million (2.5%) to acquire additional machinery and equipment for the new production facility in Selangor to increase automation and further strengthening its project delivery capabilities while the remaining RM7.1 million (4.4%) to defray the estimated listing expenses. Following its listing, SAG is expected to have a market capitalisation of RM620 million, based on an enlarged share capital of 1.0 billion shares. Related
The Star
5 days ago
- Business
- The Star
Signature Alliance shares rise 13.71% on ACE Market debut
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: Investors gave Signature Alliance Group Bhd (SAG) a warm welcome on its debut on the ACE Market of Bursa Malaysia, ramping up the newly-listed share to a 13.71% premium over its initial public offering (IPO) price. At the time of writing, the interior fit-out solutions provider, which raised RM161.2mil via an IPO fundraising, was trading at an intra-morning high of 70.5 sen a share, an 8.5 sen increase over its public issue price of 62 sen a share. It was the most active stock on the domestic market, with 63.9 million shares changing hands. Executive director and group CEO Darren Chang said post-listing ceremony the company is confident of securing between 15% and 20% of its RM1bil tender book by end-2025. He said the tenders primarily comprise commercial and industrial property projects valued at RM1.1bil as at April 15, 2025. "Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he added. Chang said the company's earnings visibility for the financial year ended Dec 31, 2025 (FY25) and FY26 will be supported by an unbilled order book of RM388.6mil as at April 16, 2025, in addition to anticipated contract wins. As at 16 April 2025, SAG has 69 ongoing projects with a total contract value of RM902.4mil. 'Our current ongoing projects of RM902.4mil, of which RM388.6mil are unbilled, clearly reflects market demand for our interior fitting-out services and provides earnings visibility for the next one to two financial years,' Chang added. SAG is on an expansion drive, allocating more than half of its IPO proceed to the development of a new corporate headquarters and production facility in Selangor. A sum of RM88mil or 54.6% of the total proceeds will go towards the new corporate and production facility, while an additional RM12mil will be used for establishing and expanding brand offices in Penang and Johor. SAG would also allocate RM30.1mil for working capital requirements and RM4mil for the acquisition of new machinery and equipment. The remaining proceeds would be used for the repayment of bank borrowings at RM20mil and to cover listing-related expenses at RM7.1mil. Pre-IPO, SAG was 50.7%-owned by Signature International Bhd , which is indirectly controlled by construction outfit Chin Hin Group Bhd . Following the IPO, Signature International's stake was diluted to 37.5%
The Star
23-05-2025
- Business
- The Star
Signature Alliance's IPO shares for public oversubscribed by 1.12 times
KUALA LUMPUR: Interior fitting-out specialist Signature Alliance Group Bhd's (SAG) initial public offering (IPO) of 50 million shares for the Malaysian public has been oversubscribed by 1.12 times. SAG said it received a total of 1,233 applications seeking 56.07 million new shares valued at RM34.76 million. "The bumiputera public portion was subscribed 1.12 times, with a total of 327 applications received for 28 million new shares. "For the non-bumiputera public portion, a total of 906 applications for 28.1 million new shares were received, representing a subscription rate of 1.12 times,' it said in a statement. Meanwhile, it said 30 million new shares made available for eligible directors, employees, and persons who have contributed to its success, and 20 million new shares for entitled shareholders of Signature International Bhd under the restricted offering have also been fully subscribed. "In addition, 160 million shares made available for application by way of private placement to bumiputera investors approved by the Ministry of Investment, Trade and Industry and selected investors have been fully placed out,' it said. SAG executive director and group chief executive officer Darren Chang said the IPO proceeds will enable the group to further accelerate its plan to establish a new corporate office and production facility in Selangor while increasing automation and strengthening its project delivery capabilities. Upon listing on the ACE Market of Bursa Malaysia on June 5, SAG would have a total market capitalisation of RM620.0 million based on an issue price of 62 sen per share and an enlarged share capital of 1.0 billion shares. - Bernama
