Powertechnic Group Berhad IPO's Analysis
Powertechnic Group Berhad
Powertechnic Group Berhad, through its subsidiaries PHEM, PMSB, and PRSB, is a specialist in lifting systems, providing comprehensive services that include engineering design, fabrication, assembly, installation, and commissioning. The Group's product range is broadly categorized into crane and hoist systems (overhead, gantry, jib cranes), elevated platform systems (dock levellers, table lifters, tilting platforms), and elevators (freight and home elevators). These systems are marketed under the "Powertechnic" brand. In addition to providing lifting systems, the Group also offers maintenance, repair, and related services, including routine inspections, preventive maintenance, and licence renewal services to optimize performance and extend the operational life of the systems. The company primarily serves the Malaysian market, with some export sales to Singapore, catering to industrial, commercial, and residential end-users.
IPO Details
Market:
ACE
Principal Adviser:
TA Securities Holdings Berhad
Issuing House:
Malaysian Issuing House (MIH)
Shariah Status:
SC (Yes)
Listing Price:
0.35
MITI allocation?:
Yes
Closing Date:
14-Oct-2025
Balloting Date:
16-Oct-2025
Listing Date:
28-Oct-2025
Oversubscription rate:
46.35x
Average Analysts FV
:
iSaham IPO Score
:
Market Cap:
108.62 M
Number of Shares:
310.34 M
( info)
Median Sectors PE:
N/A
Median Peers PE:
Strategic Overview & Data Visuals
Utilisation of Proceeds
| Purpose | Amount (RM'000) | % | |
|---|---|---|---|
| Expansion | Set up product showrooms and sales offices with storage space and marketing expenses | 4,500 | 20.41 |
| Expansion | Capital expenditure mainly for automated machines | 3,800 | 17.23 |
| Working capital | General working capital | 6,650 | 30.16 |
| Listing expenses | Estimated listing expenses | 4,300 | 19.5 |
| Debt | Repayment of bank borrowings | 2,800 | 12.7 |
| Total | 22,050 | 100 | |
Analyst Highlights
| Date | Analyst Highlights |
|---|---|
|
14-Oct-2025
Mplus |
|
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
- Established track record of approximately 23 years in the lifting systems industry, providing a platform for securing new projects.
- Offers an integrated and comprehensive solution spanning from engineering design to commissioning, ensuring product quality assurance.
- Possesses in-house engineering design capabilities, allowing for the customization of crane and hoist systems to meet a wide range of customer specifications.
- Serves a diverse range of markets including industrial, commercial, and residential, which provides business diversity and growth opportunities.
- Led by an experienced management team with over 26 years of experience in the industry, dedicated to sustaining and developing the business.
Weaknesses
- Business and financial performance are dependent on the ability to continually secure new, non-recurring project-based orders.
- Dependent on certain major suppliers for key components like hydraulic systems and services, with purchases from a single supplier reaching up to 24.3% of total purchases in FPE 2025.
- Subject to operational risks including a potential shortage of skilled technical personnel, which is crucial for engineering design, installation, and maintenance services.
- Production facilities operate at low utilisation rates (e.g., 29% for crane/hoist systems, 33% for dock levellers in FPE 2025), although this is attributed to capacity being calculated on a 24-hour basis versus a current single-shift operation.
Opportunities
- Plans to invest in automation and purchase new machinery (e.g., robotic welding, automated cutting systems) to enhance fabrication processes, improve precision, and increase production scalability.
- Intends to expand marketing activities by setting up new product showrooms and sales offices in Penang and Sarawak to increase brand awareness and market coverage in northern Malaysia and East Malaysia.
- The ongoing growth in Malaysia's construction and manufacturing industries, supported by initiatives like the New Industrial Master Plan 2030 (NIMP 2030), provides a sustainable platform for demand.
- Opportunity to expand digital marketing campaigns into foreign markets like Singapore, to grow existing market presence, and Indonesia, to test market acceptance and evaluate potential demand.
Threats
- Exposed to fluctuations in the prices of input materials, particularly steel-based materials, which can impact production costs and profit margins if increases cannot be passed on to customers.
- The business is subject to the demand and performance of end-user industries (manufacturing, warehousing, construction), making it susceptible to economic downturns that could reduce capital expenditure on lifting systems.
- Faces competition from other operators that offer similar products and services, as well as potential new entrants in the market.
- Required to comply with various regulations and licensing from authorities like DOSH and CIDB; any inability to obtain or renew necessary approvals could negatively impact operations.
Key Highlights
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Conclusion
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