Latest news with #RM388.6mil
The Star
a day 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 Star
2 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
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.
