IPO Insights - PMW International Berhad

PMW International Berhad IPO's Analysis

PMW International Berhad

PMW International Berhad, through its subsidiaries, is primarily engaged in the trading of construction materials, spun poles, and piles; the manufacturing of spun poles, piles, moulds, machinery, and metal products; and the rental of moulds and machinery. The Group has an established track record of approximately 33 years, specializing in concrete products like standard poles, monopoles, and decorative poles. It operates four manufacturing facilities in Ipoh, Perak, and Kota Kinabalu, Sabah, serving customers across Peninsular and East Malaysia. The company also provides one-stop solutions for the design and manufacturing of moulds and machinery for concrete product manufacturing.

IPO Details

Market: ACE

Principal Adviser: KAF Investment Bank Berhad

Issuing House: Malaysian Issuing House (MIH)

Shariah Status: SC (Yes)

Listing Price: 0.34

PE Ratio: 17.6-19.0

PE (FYE):

PE (FPE Annualised):

PE (Hybrid):

MITI allocation?: Yes

Closing Date: 06-Nov-2025

Balloting Date: 10-Nov-2025

Listing Date: 18-Nov-2025

Oversubscription rate: 31.7x

Average Analysts FV :

Mplus (0.57), TA (0.45), Tradeview (0.42), RHB (0.40), Public Invest (0.38)

iSaham IPO Score :

Market Cap: 303.30 M

Number of Shares: 892.05 M ( info)

IPO Allocations	No. of Shares	%
Malaysian Public	44.60 M	5.0%
Bumiputera shareholders approved by MITI	111.51 M	12.5%
Eligible Directors and employees	22.301 M	2.5%
Private placement to selected investors and others	89.21 M	10.0%
Total Allocations	267.62 M	30.0%

Offer for Sales of 89.20 M existing shares representing 10.0% enlarged shares.

Public Issue of 178.41 M new shares representing 20.0% enlarged shares.

Median Sectors PE: N/A

Median Peers PE:

Strategic Overview & Data Visuals

Utilisation of Proceeds

Purpose		Amount (RM'000)	%
Expansion	Construction of a new facility at Tanjung Manis, Sarawak	46,708	77
Expansion	Purchase of new machinery and equipment	581	0.96
Working capital	Working capital requirements	5,696	9.39
Listing expenses	Estimated listing expenses	7,675	12.65
Total		60,660	100

Analyst Highlights

Date	Analyst Highlights
06-Nov-2025 Public Invest	In-house product innovation and development capabilities. With in-house expertise and facilities, the Group's innovations enhance responsiveness, broaden its product range, and strengthen customer relationships. Establishment of new manufacturing facility in Sarawak. The Group plans to establish a new manufacturing facility to strengthen its presence and support infrastructure projects under the state's RM5bn development allocation for 2025.
06-Nov-2025 RHB	PMW International's IPO will raise MYR60.7m to fund a new factory in Sarawak, enhancing its competitive edge and exposure to infrastructure, telecom, and energy sectors. Valuation implies 10.9x FY26F P/E, supported by robust earnings and high ROEs. PMW maintains strong relationships with key telecom and utility players like TNB and TM, supplying essential poles for over 20% of FY24 revenue and 51% of its MYR134.9m orderbook, ensuring stable cash flow. The company is well-positioned to leverage Sabah's infrastructure growth, benefiting from increased federal allocation for electricity and 5G rollout, boosting demand for concrete poles and foundation piles, and expanding production capacity. Post-IPO, PMW expects improved margins by streamlining its business model, converting Winabumi and PMW Concrete into manufacturing subsidiaries, which will lead to better production margins and cost control, with a proforma FYE-2025F GPM of 26.4%. PMW's MYR0.40 fair value, based on 13x FY26F P/E, is justified by its strong ROE (c.20%) and earnings growth, despite a smaller market cap, balanced by a steady margin profile.
05-Nov-2025 Mplus	Projected 3-year earnings CAGR of 23.3% for core PATMI, driven by stronger margins from acquisitions, TNB capex, 5G expansion, and new plant in Sarawak. Margin upliftment due to acquisitions of Winabumi and PMW Concrete, enabling direct control over production costs and pricing. Poised to gain from Malaysia's 5G and fiber optic network expansion, supported by long-standing relationships with telecom giants. Expansion into East Malaysia with a new manufacturing facility in Tanjung Manis, Sarawak, boosting capacity and capturing infrastructure development opportunities.
05-Nov-2025 TA	Diversified footprint across different sectors, capturing multi-sector growth with comprehensive product suite. Capacity expansion plans drive next phase of earnings growth and operational scalability.
05-Nov-2025 TradeView	PMW's leading pole position in national infrastructure expansion drives growth. Sarawak expansion boosts East Malaysia presence and capacity for future projects. Positioned for Malaysia's infrastructure upswing with customized concrete poles and piles. State partnerships with Sarawak Timber Industry Development Corporation to capture long-term projects. 5G rollout to drive PMW's growth through increased demand for telecom monopoles.
04-Nov-2025 CGSI	PMW International Holdings (PMW) is a leading manufacturer of concrete spun poles and piles in Malaysia, capturing 18% market share by revenue in 2024. The company's business is closely tied to the expansion of electricity and telecommunications infrastructure. PMW ventured into lighting solutions with solar LED lighting, tapping into new growth areas driven by urbanisation and energy efficiency. Key clients, accounting for c.40% of group's revenue, include Tenaga Nasional, Telekom Malaysia, Sabah Electricity, and Celcom Timur. The group recorded commendable 3-year revenue and net profit CAGR of 29% and 33% respectively in FY21-24. FY24 marked record high revenue of RM164m, driven by full-year contribution from Factory 3 in Ipoh and second shift at Kota Kinabalu plant. PMW plans to set up a new 29-acre manufacturing facility in Tanjung Manis, Sarawak, to increase total production capacity by 56%. The company intends to purchase new laser cutting machines and a new shovel ladder to reduce operational downtime and boost efficiency. PMW is expanding its manufacturing segment through new product offerings, including lighting fixtures.

Utilisation of Proceeds

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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

Strong Growth: The company demonstrates strong growth, with revenue increasing at a CAGR of 29.7% from FYE2021 to FYE2024, and PAT growing consistently over the same period. Net profit margins remained relatively stable, hovering between 10.5% and 11.7%.
Proceeds for Expansion: The majority of proceeds are allocated for capital expenditure, specifically for the construction of a new manufacturing facility in Tanjung Manis, Sarawak (77.0%), and the purchase of new machinery and equipment (1.0%).
Significant Market Share: The company holds a significant market share of 18% in the manufacturing sales value of prestressed spun concrete poles in Malaysia for 2024.
Key Contracts: The company holds ongoing supply contracts for spun concrete poles and steel poles with major utility and telecommunications players, including Tenaga Nasional Berhad and Telekom Malaysia Berhad.
Revenue Visibility: The company's order book stands at RM134.87 million, which is 0.82 times its latest FYE2024 revenue.

Weaknesses

Mixed Utilisation: Utilisation rates for its spun pole and pile facilities in FYE 2024 were mixed, ranging from 45% to 69%. The steel pole manufacturing facility operated at a lower rate of 27% due to decreasing orders.

Opportunities

Infrastructure Spending: The development of public utility industries, such as telecommunications and electricity, relies on government development expenditures. The rollout of 5G and initiatives like the Sarawak Coastal Road are expected to drive demand for concrete poles and piles.
Sarawak Expansion: The planned Tanjung Manis Facility will position the company to supply spun poles and piles to support construction and infrastructure development in Sarawak, particularly for road and bridge construction in challenging peat soil conditions.

Threats

High Dependency: The business is highly dependent on continuously securing new, non-recurrent contracts (93.1% of FY2024 revenue), making it susceptible to slowdowns in the building construction and infrastructure industries and fluctuations in input material prices like steel and cement.
Customer Concentration: The group's key subsidiaries are highly dependent on major utility and telecommunication clients. For FYE 2024, TNB Group and TM Group accounted for 47.0% and 19.5% of PMW Concrete's revenue, while Celcom Timur and a related party accounted for 38.8% and 52.4% of Winabumi's revenue, respectively.
Competition: The company faces competition from operators that manufacture or trade similar products, including spun poles, piles, and square piles, as well as from operators that manufacture or trade similar or substitute products.

PMW International Berhad IPO's Analysis

PMW International 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

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