IPO Insights - ISF Group Berhad

ISF Group Berhad IPO's Analysis

ISF Group Berhad

ISF Group Berhad, through its subsidiary Yeo Plumber Sdn Bhd, is primarily involved in the supply and installation of piping systems for end-user premises, as well as water supply and sewer infrastructure piping. The company also provides maintenance and repair services for these systems. Its operations cover a wide range of properties and infrastructure, including industrial facilities, data centres, residential and commercial buildings, and public infrastructure like power plants and mass transit facilities. The Group serves customers across Peninsular Malaysia, with a significant presence in Johor, and utilizes both direct and indirect distribution channels to secure projects from main contractors, project management companies, property developers, and business owners.

IPO Details

Market: ACE

Principal Adviser: Alliance Islamic Bank Berhad

Issuing House: Tricor Investor & Issuing House (TIIH)

Shariah Status: SC (Yes)

Listing Price: 0.33

PE Ratio: 12.7-34.4

PE (FYE):

PE (FPE Annualised):

PE (Hybrid):

PE (Latest Qtr):

MITI allocation?: Yes

Closing Date: 14-Jan-2026

Balloting Date: 20-Jan-2026

Listing Date: 28-Jan-2026

Oversubscription rate: 31.14x

Average Analysts FV :

TA (0.42), Mplus (0.46), Apex (0.55), RHB (0.41), Public Invest (0.41), Tradeview (0.47)

iSaham IPO Score :

Market Cap: 330.00 M

Number of Shares: 1,000.00 M ( info)

IPO Allocations	No. of Shares	%
Malaysian Public	50.00 M	5.0%
Bumiputera shareholders approved by MITI	125.00 M	12.5%
Eligible Directors and employees	15.0 M	1.5%
Private placement to selected investors and others	85.299 M	8.53%
Total Allocations	275.30 M	27.53%

Offer for Sales of 90.00 M existing shares representing 9.0% enlarged shares.

Public Issue of 185.30 M new shares representing 18.53% enlarged shares.

Median Sectors PE:

Construction (12.2)
Industrial Products & Services (14.4)

Median Peers PE:

Strategic Overview & Data Visuals

Utilisation of Proceeds

Purpose		Amount (RM'000)	%
Expansion	Establish and expand operational facilities	11,350	18.56
Expansion	Develop the existing business activities	2,050	3.35
Expansion	Expand workforce	1,850	3.03
Working capital	Working capital	39,899	65.25
Listing expenses	Estimated listing expenses	4,800	7.85
Debt	Loan repayments	1,200	1.96
Total		61,149	100

Analyst Highlights

Date	Analyst Highlights
14-Jan-2026 RHB	MYR0.41 FV (16x FY27F P/E) driven by 35% revenue CAGR (FY24-27) from expansion across seven states, focusing on end-to-end piping solutions for diverse premises. Specializes in supplying/installing piping for end-users and infrastructure, with 47.5% of 7M25 revenue from data center projects. Expects 39% earnings CAGR (FY24-27), with Johor's DC and industrial properties offering high GPMs (38-45%) and growth opportunities. MYR120.7m remaining orderbook as of Dec 2025, supported by a MYR460m tenderbook and 5,100GW committed DC capacity in Johor. Key risks include potential slow orderbook replenishment and cost overruns impacting profitability.
14-Jan-2026 Public Invest	Established track record with provision of end-to-end solutions. The Group has a 10-year track record, offering comprehensive piping solutions ensuring project control, timely delivery, and sustained business growth. Scaling operations and capabilities. The Group's planned expansions and capability enhancements aim to boost efficiency, deliver technically demanding projects concurrently, and maintain long-term market competitiveness.
13-Jan-2026 Mplus	ISF showed margin improvement, with GP margin from 27.3% in FY22 to 44.2% in FPE25, due to industrial properties and data centres. Strong growth in data centre segment, with revenue rising from RM1.0m in FY22 to RM28.2m in FPE25, expecting continued demand for water piping systems. Transitioned from plumbing materials trading (2000-2001) to supply and installation of piping systems (2015), expanding services and client base.
13-Jan-2026 Apex	Margin Resilience: Gross profit margins expanded from 27.3% in FYE 2022 to 44.0% in FPE 2025 due to a strategic shift towards higher-margin projects and operational efficiencies. Structural Upside from Data Centre Construction Cycle: Positioned to benefit from Malaysia's accelerating data centre construction cycle due to strong execution track record and higher margins. Strong Orderbook and Tender Pipeline: Outstanding unbilled order book of RM120.7m provides strong revenue visibility and earnings pipeline; RM460m tender pipeline is skewed towards high-margin projects. Lump Sum Contract Strategy: Fixed-price framework allows full capture of benefits from depressed raw material prices, contributing to elevated gross profit margins above 40%. IPO Proceeds for Efficiency: Planned deployment of IPO proceeds into heavy machinery will enhance efficiency and reduce subcontracting costs, maintaining robust margin profile.
13-Jan-2026 TradeView	Structural margin improvement is expected from ISF's revenue mix shifting towards higher-margin industrial and DC projects with diversified end-user exposure.
12-Jan-2026 TA	Robust earnings growth backed by strong piping services demand. Geographical and capacity expansion to drive growth.

Utilisation of Proceeds

Business Segments

Geographical Segments

Major Customers

Revenue by Financial Year Ended

Profit After Tax (PAT) by Financial Year Ended

Revenue by Financial Period Ended

Profit After Tax (PAT) by Financial Period Ended

SWOT Analysis

Strengths

Explosive Revenue Growth: Revenue surged by 99.0% in FPE 2025, primarily driven by high-value Data Centre projects, showcasing strong demand for its services.
Superior Profit Margins: Achieved a Profit After Tax (PAT) margin of 25.5% in FPE 2025, significantly outperforming direct peers like Critical Holdings Berhad (8.6%).
Strong Earnings Visibility: Possesses a robust unbilled order book of RM120.68 million, which is 2.2 times its FYE2024 revenue, securing income streams through 2028.

Weaknesses

High Working Capital Needs: Operations are cash-intensive, with 65.3% of IPO proceeds allocated to working capital rather than asset expansion, indicating potential cash flow pressures.
Significant Customer Concentration: Highly dependent on a small number of clients, with its top 5 customers accounting for 72.5% of revenue and a single Data Centre customer contributing 39.0%.

Opportunities

Data Centre Boom: Positioned to benefit from Malaysia's emergence as a major Data Centre hub, with significant investments from tech giants like Microsoft and ByteDance driving demand for its specialized piping services.
National Infrastructure Projects: Government initiatives, such as water infrastructure upgrades and affordable housing projects outlined in Budget 2025, create sustained demand for its core piping system services.

Threats

Raw Material Volatility: Profitability is exposed to price fluctuations of key raw materials like steel, copper, and PVC pipes, which constitute approximately 48% of its cost of sales.
Foreign Labour Reliance: High dependency on foreign workers, who make up 68% of its workforce, makes operations vulnerable to changes in immigration policies, levy hikes, and potential labour shortages.
Geographical Dependence: Operations are heavily concentrated in Johor, which contributed 68.0% of FPE 2025 revenue, exposing the group to localized economic and project risks.

ISF Group Berhad IPO's Analysis

ISF Group Berhad

IPO Details

Strategic Overview & Data Visuals

Utilisation of Proceeds

Analyst Highlights

Utilisation of Proceeds

Business Segments

Geographical Segments

Major Customers

Revenue by Financial Year Ended

Profit After Tax (PAT) by Financial Year Ended

Revenue by Financial Period Ended

Profit After Tax (PAT) by Financial Period Ended

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Key Highlights

Conclusion

ISF Group Berhad's Latest News

Features

Services

Others

Company