Semico Capital Berhad IPO's Analysis
Semico Capital Berhad
Semico Capital Berhad is involved in the provision of family entertainment products and services, encompassing the supply of arcade and amusement machines and the operation and management of a family entertainment centre. The company is also engaged in the wholesale and distribution of toys and collectables, offering brands such as Pop Mart, Funism, Jotoys, and ToyCity in Malaysia.
IPO Details
Market:
ACE
Principal Adviser:
Affin Hwang Investment Bank Berhad
Issuing House:
Malaysian Issuing House (MIH)
Shariah Status:
SC (No)
Listing Price:
0.25
MITI allocation?:
No
Closing Date:
02-Jan-2026
Balloting Date:
06-Jan-2026
Listing Date:
13-Jan-2026
Average Analysts FV
:
iSaham IPO Score
:
Market Cap:
90.00 M
Number of Shares:
360.00 M
( info)
Median Sectors PE:
- Consumer Products & Services (13.1)
- Consumer Services (15.4)
Median Peers PE:
Utilisation of Proceeds
| Purpose | Amount (RM'000) | % | |
|---|---|---|---|
| Expansion | Purchase of new arcade and amusement machines (Expansion) | 8,500 | 36.69 |
| Expansion | Replacement of existing arcade and amusement machines | 2,050 | 8.85 |
| Expansion | Purchase of toys and collectables | 2,500 | 10.79 |
| Working capital | Working capital | 4,018 | 17.34 |
| Listing expenses | Estimated listing expenses | 4,500 | 19.42 |
| Debt | Repayment of bank borrowings | 1,600 | 6.91 |
| Total | 23,168 | 100 | |
Utilisation of Proceeds
Business Segments
Geographical Segments
Major Customers
Revenue by Financial Year Ended
Profit After Tax (PAT) by Financial Year Ended
SWOT Analysis
Strengths
- Rapid Revenue Growth: Achieved an impressive revenue CAGR of 78.2% from FY2022 to FY2025, driven by the growing popularity of Pop Mart toys and expansion of arcade machine placements.
- High Profitability: Maintains a strong net profit margin of 22.2% and gross profit margin of 47.5% in FY2025, significantly outperforming loss-making peers in the sector.
- Key Brand Distributorships: Holds distributorships for popular brands like Pop Mart, Sega, and Bandai Namco, creating a competitive advantage and barrier to entry.
- Diversified Revenue Streams: Operates a balanced dual-engine model with revenue from Toys & Collectables (53.5%) and recurring income from Family Entertainment (46.5%).
Weaknesses
- High Customer Concentration: Significant reliance on its top two customers, Aeon Fantasy and Mastering Services, which collectively contributed 41.6% of FY2025 revenue.
- Significant Supplier Dependency: Heavily reliant on the Pop Mart Group for its popular toy segment, which accounted for 47.1% of the company's total purchases in FY2025.
- Non-Exclusive Agreements: The company's distributorship rights for the key Pop Mart brand are non-exclusive, exposing it to potential competition or the principal dealing directly with retailers.
Opportunities
- Growing Collectables Market: The increasing popularity of 'blind box' toys and pop culture collectables among young adults presents a significant growth opportunity for the toys segment.
- Expansion via IPO: Plans to use RM10.6 million (45.5%) of IPO proceeds to purchase 188 new arcade machines, expanding its recurring revenue base through revenue-sharing agreements.
Threats
- Changing Consumer Trends: The toy and collectables business is subject to rapidly changing consumer tastes, which could lead to inventory obsolescence and write-downs, as seen with a RM162k write-down in FY2024.
- Forex and Regulatory Risk: Exposed to foreign exchange volatility as purchases are made in SGD, USD, and JPY. Potential changes in entertainment taxes or import regulations could also impact profitability.
Key Highlights
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Conclusion
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