Malacca Securities Flags 64% Upside in IMPACT IPO as Sarawak’s Digital Build-Out Drives Growth
StockTipRatings ·
Malacca Securities’ research team assigned Impact Capital Holdings a fair value of RM0.36 in its “Not Rated” IPO report, implying 63.6% upside from its RM0.22 IPO price. The team favours its exposure to Sarawak’s digital-infrastructure expansion, supported by a 21-year operating history in integrating telecommunications, enterprise networks, data centres and security systems.
The group’s outstanding order book stood at RM169.9 million as at September 30, including RM133.7 million scheduled for recognition between October 2026 and June 2027. Maintenance and software subscriptions provide an expanding recurring-income base, with recurring revenue rising 73.4% to RM33.1 million in FY26, equivalent to 21.4% of group revenue. The team expects completed infrastructure projects to generate further maintenance opportunities, helping smooth fluctuations in project income.
Looking ahead, the team forecasts core net profit to increase from RM9.4 million in FY26 to RM15.1 million in FY29, representing approximately 17.3% compound annual growth. Its forecasts assume RM200 million–RM250 million in annual new orders, alongside higher-margin services, software income and expansion beyond Sarawak. Sustaining growth will depend partly on replacing major projects as SMART 600, which contributed 41% of FY26 revenue, approaches completion in April 2027.
IPO applications will close on November 6, ahead of its scheduled ACE Market listing on November 24.
Disclaimer: All content is AI-aggregated from public sources for informational and educational purposes only. StockTipRatings.com does not constitute investment advice. Past performance and historical statistics are no guarantee of future returns.