Teamstar Berhad IPO's Analysis
Teamstar Berhad
Teamstar Berhad, through its subsidiaries, is principally involved in the home improvement industry in Malaysia. The Group's activities include the retail sale of furniture fittings, general hardware, kitchen and home appliances; the trading of furniture fittings; and providing value-added services such as slitting of edge banding, and the mixing and sale of coatings and solvents. Operating since 1996, the Group has a network of 29 retail outlets across Peninsular Malaysia under the 'Teamstar' and 'Benova' brands. It also sells products under 11 in-house brands and is an authorized dealer for 60 third-party brands. The business is divided into a retail segment and a trading and value-added segment, serving both retail customers and trading customers like furniture manufacturers and contractors.
IPO Details
Market:
ACE
Principal Adviser:
TA Securities Holdings Bhd
Issuing House:
AscendServ
Shariah Status:
SC (Yes)
Listing Price:
0.26
MITI allocation?:
Yes
Closing Date:
09-Feb-2026
Balloting Date:
11-Feb-2026
Listing Date:
25-Feb-2026
Average Analysts FV
:
iSaham IPO Score
:
Market Cap:
208.00 M
Number of Shares:
800.00 M
( info)
Median Sectors PE:
- Furniture (10.5)
- Consumer Products & Services (13.8)
- Retailers (21.5)
Median Peers PE:
Strategic Overview & Data Visuals
Utilisation of Proceeds
| Purpose | Amount (RM'000) | % | |
|---|---|---|---|
| Expansion | Set-up new retail outlets and warehouses | 23,209 | 67.63 |
| Working capital | Working capital requirements | 4,647 | 13.54 |
| Listing expenses | Defray fees and expenses relating to our Listing | 5,000 | 14.57 |
| Debt | Repayment of borrowings | 1,464 | 4.26 |
| Total | 34,320 | 100 | |
Utilisation of Proceeds
Business Segments
Geographical Segments
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
- Integrated Logistics Provider: Teamstar offers a comprehensive suite of services including transportation, warehousing, and freight forwarding, providing a one-stop solution for clients which enhances customer stickiness and creates cross-selling opportunities.
- Diverse Customer Base: The company serves a wide range of industries, including manufacturing, retail, and FMCG. This diversification reduces dependency on any single economic sector, providing a buffer against industry-specific downturns.
- Asset Ownership: Direct ownership of a significant fleet of prime movers and trailers provides greater control over service quality, reliability, and operational flexibility compared to competitors who heavily rely on subcontractors.
Weaknesses
- High Capital Intensity: The business requires substantial and continuous investment in fleet maintenance, replacement, and warehouse infrastructure, which can strain cash flow and increase debt levels.
- Geographic Concentration: A majority of revenue is generated from operations within Peninsular Malaysia, making the company's performance highly dependent on the domestic economic climate and vulnerable to local market saturation.
- Labor-Dependent Operations: The company's operations are heavily reliant on skilled drivers and warehouse personnel. It faces risks related to labor shortages, rising wage pressures, and potential service disruptions from labor disputes.
Opportunities
- E-commerce Growth: The rapid expansion of the e-commerce sector in Malaysia is driving significant demand for warehousing, last-mile delivery, and integrated logistics services, creating a major growth avenue for the company.
- Regional Trade Expansion: Increasing cross-border trade within the ASEAN region presents an opportunity for Teamstar to expand its freight forwarding services and tap into new, higher-margin markets.
- Technological Adoption: Implementing advanced logistics technologies like fleet management systems, warehouse automation, and data analytics can enhance operational efficiency, reduce costs, and provide a competitive edge.
Threats
- Intense Market Competition: The logistics industry is highly fragmented and competitive, with pressure from both large international players and smaller local operators, which can lead to price wars and margin erosion.
- Fuel Price Volatility: Fuel is a primary operating cost. Unpredictable fluctuations in global and local fuel prices can directly and significantly impact the company's profitability if costs cannot be passed on to customers.
- Economic Slowdown: Demand for logistics services is closely tied to overall economic activity. A domestic or regional economic downturn could lead to reduced shipping volumes and lower revenue.
Key Highlights
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Conclusion
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