Latest news with #RM1.1bil
The Star
a day 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
19-05-2025
- Business
- The Star
Signature Alliance eyes strong growth post-IPO
KAJANG: With expansion plans in place and a solid order book, Signature Alliance Group Bhd (SAG) is confident of its growth, moving forward. Principally involved in interior fitting-out services and building construction works, SAG executive director and group chief executive officer (CEO) Darren Chang said the group's nature of business is unlike that of typical construction players. He pointed out that the group's contract periods usually span less than one or two years, unlike others in the industry, where projects may take around three to five years to complete. 'Our turnaround time is very fast. At SAG, we can generate the numbers within a year,' he told StarBiz. Highlighting how the interior design industry 'works differently', Chang shared that the group remains unaffected by weather disruptions, as most of the work takes place indoors. He added that SAG serves a wide range of clients across various sectors. However, commercial projects dominate the portfolio, comprising 93% of completed developments – particularly within the corporate office, retail and hospitality segments. Residential projects make up the remaining 7%. 'Again, these are what make us unique compared to our competitors. Others tend to specialise in one sector, but at SAG, we operate across different sectors,' he quipped, adding that the corporate office and retail segments will continue to drive the group's earnings in the coming years. He noted that this diversification provides resilience during market fluctuations. 'A good example would be the Covid-19 pandemic. Retail and hospitality segments had it hard, but we managed to get the corporate office projects going and addition and alteration works as well,' he said. As of April 16, 2025, SAG had 69 ongoing projects with a total contract value of RM902.4mil and an unbilled contract value of RM388.6mil. Its tender book stands at RM1.1bil, with 53 tenders submitted as of the same date. With a healthy project pipeline and rising demand, Chang believes this is the right time for SAG to pursue a public listing. SAG aims to raise RM161.2mil through an initial public offering (IPO) on the ACE Market on Bursa Malaysia on June 5. The group will issue 260 million new ordinary shares at 62 sen apiece. The IPO pricing is based on a 15 times price-to-earnings ratio, benchmarked against SAG's financial year ended Dec 31, 2024 (FY24), and values the company at an estimated market capitalisation of RM620mil upon listing. In FY24, SAG recorded a net profit of RM40.56mil. This was a sharp increase from RM10.42mil in FY23, as revenue more than doubled to RM386.02mil from RM173.38mil. Chang said the results reflected the group's ability to scale quickly and deliver consistent earnings, further justifying its valuation. The bulk of the IPO proceeds will fund business expansion, with RM88mil allocated for a new corporate office and production facility in Selangor, and RM12mil set aside for expanding and establishing branch offices in Penang and Johor. An additional RM30.1mil will go toward working capital, while RM4mil is for machinery and equipment purchases. Currently, SAG operates two facilities in Bandar Baru Bangi and Kuchai, both of which are running at full capacity. The group plans to consolidate operations at a larger, centralised facility to improve efficiency and reduce operational costs. The new Klang-based corporate office and production facility will be built on a 117,000 sq ft parcel of land. Construction is expected to be completed by February 2028, with operations commencing four months later. In Penang and Johor, demand for interior fit-out services has picked up post-pandemic, said Chang. 'Previously, business was slow in Penang due to Covid-19, but with the market recovering and fresh capital from the IPO, we're confident we can secure more projects in these regions.' The remaining IPO proceeds will go toward repaying bank borrowings (RM20mil) and covering estimated listing expenses (RM7.1mil). Looking ahead, Chang expressed confidence in SAG's growth trajectory post-listing. With a current market share of just 8.1%, he said the company is far from reaching its full potential. 'We're strategically positioning ourselves to capture a larger share of the market. There's still plenty of room to grow, and we're just getting started,' he said.
The Star
14-05-2025
- Business
- The Star
Sapura Energy set for regularisation plan
The company said that under its reset plan, there would be a focus on improving bidding and project delivery capabilities. PETALING JAYA: Sapura Energy Bhd (SEB) is finalising a regularisation plan to exit the Practice Note 17 (PN17) status that includes a few corporate exercises to put the company on a stronger financial and operational standing. The company said in a statement that the plan would be finalised soon and includes a fund-raising initiative in which the Finance Ministry through Malaysia Development Holding Sdn Bhd (MDH) will subscribe up to RM1.1bil in redeemable convertible loan stocks (RCLS) to fund its repayment to vendors. 'MDH will become a major shareholder upon full conversion of the RCLS, which will result in MDH holding more than 33% of SEB's enlarged share capital,' the upstream oil and gas operator said. There would also be a proposed capital reconstruction involving a 99.99% capital reduction to offset accumulated losses; and a 20-to-1 share consolidation to enhance share trading prices and reduce price volatility. 'A comprehensive proposed debt restructuring exercise will reduce SEB's total borrowings from about RM10.8bil to RM5.6bil, yielding substantial interest savings and reduced financial burden, through several mechanisms that, among others, includes debt conversions to equity and equity-like instruments and a debt waiver,' SEB explained. The company added that under its reset plan, there would be a focus on improving bidding and project delivery capabilities. The plan has resulted in a sustained annual revenue of RM4bil since its launch in 2022. Meanwhile, the company said it would continue its efforts in repositioning itself for long-term sustainability and profitability. For its financial year ended Jan 31, 2025, the company posted a net profit of RM190mil on the back of RM4.7bil in revenue. Its order book currently stands at RM8.2bil. Group chief executive officer Muhammad Zamri Jusoh said with the strategic initiatives and the successful implementation of the proposed regularisation plan, SEB is confident in its path to operational recovery, improved financial health, and eventual upliftment from PN17 status. 'We are hopeful that this plan will not only enable SEB's recovery but also catalyse the growth of the country's energy ecosystem,' he said. Muhammad Zamri added the plan, plus the company's continued focus on its core business in engineering and construction, drilling, and operations and maintenance, represents the most viable pathway to a turnaround in its financial status. 'We are confident the successful execution of the plan will return the group to profitability and restore confidence among stakeholders,' he noted. Its share price remained unchanged at 4.5 sen yesterday, with a market capitalisation of RM661.53mil.
The Star
07-05-2025
- Business
- The Star
Pharmaniaga quarterly performance improves
The group said it will continue the implementation of its regularisation plan to exit its Practice Note 17 status. PETALING JAYA: Pharmaniaga Bhd 's net profit for the first quarter ended March 31, 2025 (1Q25) rose to RM29.58mil from RM25.65mil in the previous corresponding quarter, while revenue during the period grew to RM1.1bil, compared to RM965mil in the previous quarter. In a statement, the pharmaceutical group said the 9.4% increase in revenue was mainly supported by the manufacturing division that contributes 65% to the group's profit. Pharmaniaga's Indonesian division, however, recorded lower earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter under review due to the weakening of the rupiah against the ringgit. 'Excluding the impact of currency translation, the Ebitda showed an increase of 1.6%, driven by higher revenue from products of existing principals and additional sales generated from the opening of two new branches in February 2024 and one branch in October 2024,' the group said. Moving forward, the group added that it will continue the implementation of its regularisation plan to exit its Practice Note 17 status following shareholders' approval of resolutions. 'With these strategic initiatives in motion, Pharmaniaga remains focused on delivering its growth targets for 2025 and reinforcing its market position across core business segments,' it noted. As for Indonesia, the group will continue to strengthen its logistics network and manufacturing capabilities. 'Renovation of its central warehouse in Bekasi is progressing as planned and is expected to improve operational efficiency upon completion by 4Q25. 'The group has also commenced contract manufacturing activities, with additional projects in the pipeline under contract development manufacturing organisation arrangements.' Pharmaniaga managing director Zulkifli Jafar said the group was making significant progress in expanding its non-concession government business. 'During the quarter, we were awarded two major Health Ministry tenders for the supply of high-value specialty injectable medicines, Secukinumab and Enoxaparin Sodium with a combined contract value of RM97.5mil over three years,' added Zulkifli. Furthermore, he said that the group secured a RM139mil contract to supply dialysis solutions for the Social Security Organisation through 2029.
The Star
07-05-2025
- Business
- The Star
Pharmaniaga 1Q net profit rises to RM29.6mil
PETALING JAYA: Pharmaniaga Bhd 's net profit for the first quarter ended March 31, 2025 rose to RM29.58mil from RM25.65mil in the previous corresponding quarter, while revenue during the period grew to RM1.1bil, compared to RM965mil in the previous quarter. In a statement, the pharmaceutical group said the 9.4% increase in revenue was mainly supported by the manufacturing division, which contributes 65% to the group's profit. Pharmaniaga's Indonesian division however, recorded lower earnings before interest, taxes, depreciation, and amortisation (ebitda) for the quarter under review due to the weakening of the rupiah against the ringgit. 'Excluding the impact of currency translation, the ebitda showed an increase of 1.6%, driven by higher revenue from products of existing principals and additional sales generated from the opening of two new branches in February 2024 and one branch in October 2024,' the group said. Moving forward, the group said it will continue the implementation of its regularisation plan to exit its Practice Note 17 status following shareholders approval of resolutions. 'With these strategic initiatives in motion, Pharmaniaga remains focused on delivering its growth targets for 2025 and reinforcing its market position across core business segments,' it noted. As for Indonesia, the group will continue to strengthen its logistics network and manufacturing capabilities. 'Renovation of its central warehouse in Bekasi is progressing as planned and is expected to improve operational efficiency upon completion by the fourth quarter of this year. 'The group has also commenced contract manufacturing activities, with additional projects in the pipeline under contract development manufacturing organisation arrangements.'
