BMS Holdings Berhad IPO's Analysis
BMS Holdings Berhad
BMS Holdings Berhad, through its subsidiaries, is involved in the retailing, wholesaling, and project sales of tiles and stone surfaces across Malaysia. The company offers a wide range of products, including porcelain and ceramic tiles, natural stones like marble and granite, engineered stones, and mosaic tiles. To complement its primary offerings, the Group also provides a selection of bathware and kitchenware. The business operates through a multi-channel model, serving end-users, professionals, and resellers via its network of 20 retail showrooms under the JUBIN BMS brand, as well as engaging in project sales to contractors and property developers. The company was incorporated in Malaysia and has established a significant presence in Johor, Selangor, Kuala Lumpur, Negeri Sembilan, and Sarawak.
IPO Details
Market:
ACE
Principal Adviser:
Alliance Islamic Bank Berhad
Issuing House:
Malaysian Issuing House (MIH)
Shariah Status:
SC (Yes)
Listing Price:
0.22
MITI allocation?:
Yes
Closing Date:
19-Nov-2025
Balloting Date:
26-Nov-2025
Listing Date:
08-Dec-2025
Oversubscription rate:
2.4x
Average Analysts FV
:
TA (0.24), RHB (0.31), Mplus (0.25)
iSaham IPO Score
:
Market Cap:
338.80 M
Number of Shares:
1,540.00 M
( info)
Median Sectors PE:
N/A
Median Peers PE:
Strategic Overview & Data Visuals
Utilisation of Proceeds
| Purpose | Amount (RM'000) | % | |
|---|---|---|---|
| Expansion | Expansion of operations and facilities | 34,280 | 42.81 |
| Expansion | Upgrading of existing operational facilities and ICT system | 17,000 | 21.23 |
| Working capital | Working capital | 18,800 | 23.47 |
| Others | Marketing activities | 4,000 | 5.0 |
| Listing expenses | Estimated listing expenses | 6,000 | 7.49 |
| Total | 80,080 | 100 | |
Analyst Highlights
| Date | Analyst Highlights |
|---|---|
|
19-Nov-2025
RHB |
|
|
19-Nov-2025
Mplus |
|
|
18-Nov-2025
TA |
|
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
- Consistent Financial Growth: Demonstrated a strong financial track record with consistent growth in revenue from RM207.89 million in FYE2022 to RM320.18 million in FYE2025, and PAT growing from RM10.33 million to RM21.47 million over the same period.
- Extensive Network: Operates a network of 20 retail showrooms across Peninsular and East Malaysia, providing wide market coverage and direct customer access in key urban and suburban areas.
- Outperforming the Manufacturers: BMS's focused distribution model keeps it profitable (6.7% margin), while its vertically-integrated competitors who also manufacture, such as Kim Hin (-13.9%) and White Horse (-3.9%), are struggling with significant losses.
Weaknesses
- Inventory Risk: The business is subject to inventory risks associated with obsolescence and accumulation, with a relatively high inventory turnover period of 171 days in FYE2025. Total inventories stood at RM99.93 million as of 30 June 2025.
Opportunities
- Strategic Expansion: IPO proceeds are primarily allocated for expansion, including setting up 8 new retail showrooms and a new distribution centre in Klang Valley, which will enhance market coverage and operational efficiency.
- Construction Boom: The growing property development and construction industries, coupled with rising household income, are expected to drive demand for surface coverings for both new projects and renovations.
- New Product Launches: Plans to introduce new product collections, including environmentally friendly tiles and new bathware/kitchenware brands, catering to evolving consumer preferences and expanding its product portfolio.
Threats
- Intense Competition: The surface covering distribution industry has low barriers to entry, leading to intense competition from other manufacturers, retailers, and wholesalers on factors like pricing, quality, and brand.
- High Reliance on China: The company's supply chain is highly exposed, with 59% of products imported and a staggering 41% coming from just one single supplier in China.
- Foreign Exchange Risk: Purchases are transacted in foreign currencies (mainly RMB, THB, USD) while sales are in RM, exposing the Group to adverse movements in foreign exchange rates which could impact profit margins.
- Economic Sensitivity: Demand for the Group's products is linked to discretionary consumer spending and the health of the property and construction sectors, making the business susceptible to economic downturns.
Key Highlights
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Conclusion
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