Financial Disclaimer

Prepared by Julio, Licensed Remisier, UOB Kay Hian Malaysia, for general information only and is not an investment advice. Please consult before acting.

This presentation is intended solely for Julio’s UOB client and is provided for general informational purposes only. It does not constitute financial, investment, or legal advice. While care has been taken to ensure accuracy, the content is subject to change and may not be suitable for your specific financial situation. Please consult with a qualified financial advisor or Julio before making any decisions based on this information.

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NWE RESOURCES

GROUP BERHAD

HEALTH FOODS, PERSONAL CARE & HOSPITALITY AMENITIES · ACE MARKET · A JJSP IPO CASE STUDY

APPLICATIONS CLOSE 9 OCTOBER 2026, 5:00PM

RM0.20

IPO PRICE

RM108.0M

MARKET CAP AT LISTING

21 OCT

2026

LISTING DATE

OCTOBER 2026

IPO SNAPSHOT

NWE Resources, at a glance

A 39-year-old hospitality supplier and 30-year-old MLM health-food brand, listing on the ACE Market

IPO PRICE PER SHARE

RM0.20

MARKET CAP AT LISTING

RM108.0M

540.0 million enlarged shares

PUBLIC ISSUE (NO OFFER FOR SALE)

143.1M

26.5% of enlarged shares — promoters sell nothing

LISTING DATE

21 OCT

2026

ACE Market, Bursa Malaysia

TRAILING P/E (IPO BASIS, FYE2026)

12.6x

EPS 1.58 sen on enlarged shares

GROSS PROCEEDS (PUBLIC ISSUE)

RM28.63M

All accrues to the Company

BUSINESS

What does NWE actually do?

Health Foods

Sold two ways: through its 30-year-old M-Plan multi-level marketing network (7,309 active distributors, incl. Japan's Miki Prune Extract under exclusive rights), and by formulating health foods for other brand owners.

SHARE OF FYE2026 GROUP REVENUE

55.1%

Up from 43.3% in FYE2023 — the growth engine

Personal Care & Hospitality Amenities

Shampoos, soaps, room linens and repackaged F&B sachets for hotels since 1987 — repackaged and manufactured at its own Glenmarie facility, plus distributed own-brand skincare.

SHARE OF FYE2026 GROUP REVENUE

44.9%

Personal care 40.9% + repackaged F&B 4.0%

REVENUE MODEL

How NWE makes money

Five revenue streams, a diversified customer base — and one long-standing Japanese supplier

TOP 5 CUSTOMERS, SHARE OF FYE2026 REVENUE

31.4%

HOTELS & HOSPITALITY OPERATORS, FYE2026

37.5%

MIKI CORPORATION (JAPAN) — SUPPLIER SINCE 1997

11.0% of buys

FINANCIALS

Financial statement at a glance

Revenue fell two years running — while profit nearly tripled (FYE ends 31 March)

REVENUE, FYE2024 → FYE2026

-8.6%

PAT, FYE2023 → FYE2026

+195%

NET CASH FROM OPERATIONS, FYE2026

RM6.6M

FINANCIALS

Profitability & cash flow

The whole story is margin: smaller revenue, far richer mix

GP MARGIN, FYE2023 → FYE2026

39.0% → 52.4%

Up every single year

PAT MARGIN, FYE2023 → FYE2026

8.2% → 20.5%

Only one IMR peer (DND World) is higher

PERSONAL CARE DISTRIBUTION GP MARGIN

46.4% → 60.3%

FYE2025 → FYE2026, own brands

Three Drivers — Two Repeatable, One Not

Management attributes the margin jump to (1) more own-brand sales — ReDiant, Diva, LuxZuki and the Essando skincare line launched October 2025, (2) a deliberate 'customer optimisation' that dropped lower-margin accounts, which is why revenue fell, and (3) cheaper Miki purchases thanks to favourable currency movements. The first two are strategic and can persist; the third is a tailwind that can reverse with the yen.

GROWTH

Growth runway

A tiny player in huge, slow-growing markets — growth has to come from new products, not a rising tide

ACTIVE M-PLAN DISTRIBUTORS (MAR-25 → LPD)

4,648 → 7,309

NWE'S SHARE OF EVERY SEGMENT IT SERVES

< 1%

Distributors Up 57%, MLM Revenue Down 6% — Watch This Gap

Direct selling turnover in Malaysia was flat-to-down in 2024 (-0.6% to RM34.2B), and ~100 licensed players compete in health foods and personal care. NWE's active distributor base jumped from 4,648 to 7,309, yet MLM health-food revenue slipped from RM14.1M to RM13.2M in FYE2026. Hotel guests grew at a 6.5% CAGR (2023–25), a steadier tailwind for amenities.

CAPITAL

Capital position

Thin cash going in, but the IPO more than doubles equity and halves gearing

CASH VS BORROWINGS (31 MAR 2026)

RM2.4M vs RM8.2M

Net debt of ~RM5.8M pre-IPO

GEARING RATIO, PRO FORMA

0.33x → 0.16x

Before → after IPO proceeds

DIVIDENDS PAID, FYE2025–FYE2026

RM7.4M

FYE2025 payout ratio: 78%

Generous Pre-IPO Payouts, Then a Raise for Working Capital

NWE has paid a dividend every year under review — RM0.38M, RM0.51M, RM5.41M and RM2.00M declared for FYE2023–FYE2026 — funded from internal cash. That is a genuine track record, but note the sequence: RM7.4M went out to existing shareholders over the last two years, leaving RM2.4M of cash, and RM8.2M of the IPO money is now earmarked for working capital. No fixed dividend policy is in place post-listing.

VALUATION

Valuation

No peer P/E disclosed — peers are mostly private subsidiaries, benchmarked on margins only

TRAILING P/E (IPO BASIS, FYE2026)

12.6x

PRICE / PRO FORMA NA (RM0.08)

2.5x

FYE2026 PAT MARGIN

20.5%

Direct-selling peers named in the IMR report (latest audited year)

Note: figures are for the operating subsidiaries, not the listed parents, so no market capitalisation or P/E can be derived. Of the 13 direct sellers listed, 5 were loss-making. Source: IMR report by Vital Factor Consulting, Prospectus Section 8.

TARGET PRICE

JJSP research view — indicative fair value

Method: EPS sensitivity on the IPO's own 12.6x multiple — no independent peer P/E is disclosed

Scenario PAT ÷ 540M shares × 12.6x = Fair Value

BEAR — MARGIN TO 4-YR AVG 13.6%

RM0.13

-34% vs IPO price

BASE — FYE2026 HOLDS (1.58 SEN)

RM0.20

In line with IPO price

BULL — 20.5% MARGIN, +10% REVENUE

RM0.22

+10% vs IPO price

Method: IMR peers are unlisted subsidiaries, so there is no peer P/E to borrow. The range holds the IPO's own 12.6x and flexes PAT margin, which jumped from 8.2% to 20.5% in three years. The price already assumes the best margin year continues.�Re-rating catalysts: new health-food and skincare formulations (RM9.1M of proceeds) · distributor growth converting into MLM revenue.�De-rating risks: yen strength reversing the Miki cost tailwind · revenue continuing to shrink · thin liquidity on a RM108M listing.

IPO STRUCTURE

IPO structure & use of proceeds

143.1m new shares only — RM28.63m raised, every ringgit goes to the company

32%

29%

16%

14%

9%

Product Development

RM9.14M · 31.9%

Working Capital

RM8.22M · 28.7%

Marketing & Promotion

RM4.57M · 16.0%

Listing Expenses

RM4.00M · 14.0%

R&D, Equip. & Office

RM2.70M · 9.4%

AGILE PLAN (TAN FAMILY) POST-IPO

45.0%

Tan Hong Huat (Group MD) and two brothers

TCMBIO (TEO ENG SAN) POST-IPO

24.8%

Business Development Director

MORATORIUM SCHEDULE

6 + 6 Mo

100% locked 6 months, then 45% for 6 more

BULL CASE

Bull case

1

Margin Expansion Every Year, Driven by Own Brands

GP margin rose 39.0% → 52.4% and PAT margin 8.2% → 20.5% over FYE2023–FYE2026 as own brands (ReDiant, Diva, LuxZuki, Essando) took a bigger share.

2

Low Customer Concentration

Top 5 customers were only 31.4% of FYE2026 revenue — far less concentrated than most ACE Market IPOs this year.

3

Promoters Aren't Selling — and Cash Conversion Is Real

No Offer for Sale: all RM28.63M goes into the business. Operating cash flow of RM6.6M closely tracks FYE2026 PAT of RM8.5M.

4

Decades of Relationships

39 years supplying hotels, 30 years of MLM, 29 years as Miki's exclusive distributor — and a dividend paid every year under review.

BEAR CASE

Bear case

1

Revenue Has Shrunk Two Years Running

RM45.6M (FYE2024) → RM43.5M → RM41.6M. Profit growth has come from margin, and margin can't expand forever.

2

Part of the Margin Is Currency Luck

Management cites cheaper Miki purchases from favourable exchange rates. If the yen strengthens, that tailwind reverses.

3

More Distributors, Less MLM Revenue

Active distributors rose 36% in FYE2026, yet MLM health-food revenue fell 6% — recruitment isn't yet converting into sales.

4

The IPO Price Assumes the Best Year Continues

At 12.6x FYE2026's record earnings, any margin reversion leaves downside (bear case RM0.13) while the bull case is only RM0.22.

CATALYSTS & RISKS

Catalysts & risks

Catalysts

Listing on the ACE Market

21 October 2026

New Product Launches

6 health-food + 5 skincare formulations

In-House Health-Food Manufacturing

Capture margin now paid to contract makers

Johor M-Plan Office

First physical presence in the south

Risks

Shrinking Top Line

Revenue down 8.6% from FYE2024 peak

Currency Exposure

Miki purchases priced from Japan

MLM Conduct & Regulation

Distributor misrepresentation risk

Execution of In-House Plans

New manufacturing, new formulations

The Bottom Line

NWE Resources is a profitable, cash-generative, lightly concentrated consumer business listing at 12.6x earnings with no shares sold by its promoters — but those earnings come from a record margin year on a shrinking revenue base, so the price already assumes the margin story holds.

Long-Term Holders

Watch whether revenue returns to growth in FYE2027 while PAT margin stays near 20% — that combination is what re-rates this stock.

IPO Subscribers

Applications close 9 October 2026, 5:00pm. Upside to base fair value is limited; size any application with the bear case in mind.

New Money Post-Listing

Track MLM revenue against distributor numbers, and the yen against Miki purchase costs, in the first two quarterly reports.

Sources: NWE Resources Group Berhad IPO Prospectus dated 29 September 2026 (Sections 3, 4, 7, 8, 12); IMR Report on the Distribution of Health Foods and Personal Care Products by Vital Factor Consulting, 1 September 2026, within the Prospectus; Bursa Malaysia ACE Market listing documents.��This case study is produced by JJ Strategic Partners (JJSP) for educational purposes only. It does not constitute personalised investment advice. The JJSP target price / fair value view on slide 10 is a house research view, not advice tailored to any individual client. Investments carry risk including loss of capital. Past performance does not guarantee future results. Speak to your licensed investment advisor before acting on any information presented. This is an analysis of a prospective IPO based on prospectus disclosures — subscription is subject to the full Prospectus registered with Bursa Securities.

EGH

INTERNATIONAL

BERHAD

TURNKEY INTERIOR FIT-OUT & FF&E · ACE MARKET, BURSA MALAYSIA · A JJSP IPO CASE STUDY

APPLICATIONS CLOSE 5 OCTOBER 2026, 5:00PM

RM0.16

IPO PRICE

RM160.0M

MARKET CAP AT LISTING

16 OCT

2026

LISTING DATE

SEPTEMBER 2026

IPO SNAPSHOT

EGH International, at a glance

Turnkey interior fit-out services and FF&E supply, listing on the ACE Market

IPO PRICE PER SHARE

RM0.16

MARKET CAP AT LISTING

RM160.0M

1.0 billion enlarged shares

PUBLIC ISSUE + OFFER FOR SALE

240.0M +

120.0M

New shares + existing shares sold

LISTING DATE

16 OCT

2026

ACE Market, Bursa Malaysia

TRAILING P/E (IPO BASIS, FYE2026)

14.68x

Company's own basis for the IPO Price

GROSS PROCEEDS (PUBLIC ISSUE)

RM38.40M

RM19.20M more accrues to the Offeror

BUSINESS

What does EGH International actually do?

Interior Fit-Out Services

A turnkey fit-out provider with 15 years of experience and over 200 completed projects — hotels, resorts, healthcare facilities, education and airport lounges, in Malaysia, Cambodia, India and Hong Kong.

SHARE OF FYE2026 GROUP REVENUE

92.1%

A CIDB Grade 7 contractor — unlimited tendering capacity

Sale of FF&E & Building Materials

Furniture, fixtures & equipment and building materials supplied alongside its own fit-out projects — a smaller, more volatile segment that has swung between 8% and 26% of revenue.

SHARE OF FYE2026 GROUP REVENUE

7.9%

Down from 25.8% in FYE2025 — fit-out demand crowded it out

REVENUE MODEL

How EGH makes money

One customer relationship still dominates — though far less than it did a year ago

LARGEST CUSTOMER, TME BUILDERS (FYE2025 VS FYE2026)

60.9%

vs 28.2%

TOP 5 CLIENTS COMBINED (FYE2025 VS FYE2026)

81.0%

vs 70.1%

OUTSTANDING ORDER BOOK (18 PROJECTS, AS AT LPD)

RM313.5M

FINANCIALS

Financial statement at a glance

Audited historical results, FYE 2023–2026 (financial year ends 31 March)

FYE2026 REVENUE VS FYE2025

+19.4%

GP MARGIN, FYE2023 VS FYE2026

9.3% →

20.0%

57 PROJECTS COMPLETED, COMBINED VALUE

RM829.9M

FINANCIALS

Profitability & cash flow

Every margin line has expanded every year for four straight years — a genuine, not a one-off, trend

FYE2026 PAT VS FYE2023

RM10.9M

vs RM2.3M

PAT margin: 1.39% → 5.84%

EBITDA MARGIN (FYE2023–FYE2026)

5.6% →

12.2%

More than doubled over the period

GEARING RATIO (FYE2023 VS FYE2026)

16.05x →

2.66x

A genuine balance-sheet repair

Four Straight Years of Margin Expansion

GP margin, EBITDA margin, PBT margin and PAT margin have all risen every single year of the review period — GP margin alone more than doubled from 9.25% to 20.02%. That's a genuinely different signal from a company riding one good project; the improvement shows up at every level of the income statement, consistent with better project selection and lower reliance on FF&E trading, historically the lower-margin segment.

GROWTH

Growth runway

A small share of a large, fragmented, steadily growing market

EGHI'S MARKET SHARE (CALENDAR YEAR 2025)

2.8%

INDUSTRY CAGR, 2025–2030

5.2%

Highly Fragmented — 938 G7 Contractors Competing on Track Record

Malaysia's interior fit-out market is projected to grow from RM4.73 billion (2025) to RM6.11 billion (2030), a 5.2% CAGR. The industry is highly fragmented — 938 local G7 contractors held the top CIDB grade for interior decoration as at August 2026 — so EGHI's edge is its 15-year, 200-project track record and CIDB Grade 7 status, not scarcity of competitors.

CAPITAL

Capital position

Gearing has fallen sharply, but the balance sheet still carries an accumulated deficit

CASH & SHORT-TERM DEPOSITS (FYE2026)

RM25.7M

Up from RM12.7M in FYE2023

GEARING RATIO (FYE2026)

2.66x

Down from 16.05x in FYE2023

ACCUMULATED LOSSES (FYE2023 VS FYE2026)

RM32.3M →

RM12.3M

Shrinking, but still a deficit

One Dividend on Record — and a Balance Sheet Still Mid-Repair

EGH paid a single dividend of RM2.0 million in FYE2025 (27.71% payout) and does not intend to declare further dividends prior to Listing. Meanwhile, accumulated losses — a legacy of the pre-IPO reorganisation and combined-entity accounting rather than current trading — have shrunk every year but remain negative at RM12.3 million as at FYE2026. The RM14.4 million of IPO proceeds earmarked for debt repayment should accelerate that repair.

VALUATION

Valuation

No peer P/E is disclosed — but 7 named comparables show EGHI's margins mid-pack and improving

IMPLIED TRAILING P/E (IPO'S OWN BASIS)

14.68x

FYE2026 GP MARGIN (VS PEER AVG 21.3%)

20.0%

FYE2026 PAT MARGIN (VS PEER AVG 8.1%)

5.8%

Named comparable companies disclosed in the Prospectus (Bursa-listed interior fit-out companies / subsidiaries)

Note: no market capitalisation or P/E is available for most peers (private subsidiaries); the Prospectus benchmarks margins only, not multiples. Excellent Bonanza Sdn Bhd (loss-making, -1.9% PAT margin) omitted above for space — see Prospectus Section 8.10.1.

TARGET PRICE

JJSP research view — indicative fair value

Method: EPS sensitivity on the IPO's own justified multiple — no independent peer P/E is disclosed

Scenario PAT Margin × Revenue ÷ 1.0bn shares × 14.68x = Fair Value

BEAR — MARGIN REVERTS TO 3.5%

RM0.10

-38% vs IPO price

BASE — FYE2026 MARGIN HOLDS (5.8%)

RM0.16

In line with IPO price

BULL — MARGIN EXTENDS TO 7.0%

RM0.19

+19% vs IPO price

Method: No peer P/E is disclosed for this IPO — only peer margin benchmarks. So instead of borrowing a multiple, this range holds EGHI's own 14.68x IPO-basis multiple constant and flexes the one input the four-year track record actually tells us is uncertain: the PAT margin, which has risen every year from 1.39% to 5.84%. Applying that same multiple to FYE2026 revenue (RM187.1M) at a reverted 3.5% margin, the current 5.84% margin, and an extended 7.0% margin brackets the range below.�Re-rating catalysts: the RM313.5M order book converting to billed revenue through FYE2028 · continued margin expansion as FF&E trading (historically lower-margin) keeps shrinking as a share of revenue · gearing falling further as IPO proceeds retire high-cost debt.�De-rating risks: margin reversion if project mix shifts back toward FF&E trading or pricing competition intensifies among the 938 registered G7 contractors · loss of TME Builders or another top-5 client · the accumulated deficit (RM12.3M) still unresolved at FYE2026.

IPO STRUCTURE

IPO structure & use of proceeds

240.0m new shares + up to 120.0m Offer for Sale shares — gross Public Issue proceeds of RM38.40m

38%

34%

16%

13%

Repayment of Borrowings

RM14.40M · 37.5%

General Working Capital

RM13.00M · 33.9%

Listing Expenses

RM6.00M · 15.6%

New HQ, Warehouse & Showroom

RM5.00M · 13.0%

LARGEST SHAREHOLDER POST-IPO

Dato' Weslie

31.3%

Group Managing Director, Promoter

SELLING SHAREHOLDER (OFFEROR)

Doh Jee Ming

49.0% → 25.2%

Sells down via the Offer for Sale

MORATORIUM SCHEDULE

6 + Mo

100% locked 6 months, then ≥45% held

BULL CASE

Bull case

1

Four Straight Years of Margin Expansion

GP margin more than doubled (9.25% → 20.02%) and PAT margin quadrupled (1.39% → 5.84%) over FYE2023–FYE2026 — every margin line improved every single year.

2

A RM313.5 Million Order Book Gives Real Revenue Visibility

18 secured, ongoing projects worth RM313.5 million — nearly 1.7x FYE2026 revenue — provide billing visibility through FYE2028.

3

Customer Concentration Has Fallen Sharply

TME Builders alone fell from 60.9% of revenue (FYE2025) to 28.2% (FYE2026) as new projects diversified the client base.

4

A Real Balance-Sheet Turnaround

Gearing collapsed from 16.05x to 2.66x in four years, and RM14.4 million of IPO proceeds are earmarked to retire more high-cost debt.

BEAR CASE

Bear case

1

Still a Concentrated Client Base

Top 5 clients were still 70.1% of FYE2026 revenue, and TME Builders alone remains a 7-year, 28.2%-of-revenue relationship — a single lost contract would hurt.

2

Accumulated Losses Are Still Negative

The balance sheet carries an accumulated deficit of RM12.3 million as at FYE2026 — smaller than FYE2023's RM32.3 million, but not yet resolved.

3

No Disclosed Peer P/E — a Real Valuation Blind Spot

Unlike some recent ACE Market IPOs, no independent peer trading multiple is disclosed here, only margin benchmarks, making this target price genuinely harder to anchor.

4

A Highly Fragmented, Competitive Industry

938 local G7 contractors compete on price and track record in Malaysia's interior fit-out market — there's no structural moat beyond reputation and CIDB grading.

CATALYSTS & RISKS

Catalysts & risks

Catalysts

Listing on the ACE Market

16 October 2026 — under 3 weeks away

RM313.5M Order Book Billing Out

Through FYE2027 and FYE2028, high visibility

Debt Repayment From IPO Proceeds

RM14.4M retires the highest-cost borrowings

Continued Margin Expansion

A trend, tracked across four full years, not a one-off

Risks

Top 5 Clients Still 70.1% of Revenue

Concentration has fallen, but remains high

Accumulated Deficit Still RM12.3M

Balance-sheet repair is not yet complete

No Disclosed Peer P/E

Valuation must lean on the IPO's own basis

938 Competing G7 Contractors

A fragmented market with no structural moat

The Bottom Line

EGH International is a turnkey interior fit-out contractor listing on the ACE Market at 14.68x trailing earnings, with four straight years of margin expansion, falling customer concentration and a RM313.5 million order book — set against a still-negative accumulated deficit and no disclosed peer trading multiple to anchor the valuation.

Long-Term Holders

Watch whether GP and PAT margins keep expanding past FYE2026, and whether the accumulated deficit finally turns positive.

IPO Subscribers

Applications close 5 October 2026, 5:00pm — under a week of runway. Read the full risk factors, not just the margin trend.

New Money Post-Listing

Watch how quickly the RM313.5 million order book converts into billed, recognised revenue through FYE2027 and FYE2028.

Sources: EGH International Berhad IPO Prospectus dated 24 September 2026 (Sections 3, 4, 7, 8, 9, 12, 13); Independent Market Research Report on the Interior Fit-Out Industry in Malaysia by Infobusiness Market Research Sdn Bhd, within the Prospectus; Bursa Malaysia ACE Market listing documents.��This case study is produced by JJ Strategic Partners (JJSP) for educational purposes only. It does not constitute personalised investment advice. The JJSP target price / fair value view on slide 10 is a house research view, not advice tailored to any individual client. Investments carry risk including loss of capital. Past performance does not guarantee future results. Speak to your licensed investment advisor before acting on any information presented. This is an analysis of a prospective IPO based on prospectus disclosures — subscription is subject to the full Prospectus registered with Bursa Securities.

REDPLANET

BERHAD

LEAP → ACE MARKET TRANSFER, BURSA MALAYSIA · A JJSP IPO CASE STUDY

APPLICATIONS CLOSE 8 OCTOBER 2026, 5:00PM

RM0.19

IPO PRICE

RM78.0M

MARKET CAP AT LISTING

22 OCT

2026

LISTING DATE

SEPTEMBER 2026

IPO SNAPSHOT

RedPlanet Berhad, at a glance

Geospatial & intelligent rail solutions · transferring from the LEAP Market to the ACE Market

IPO PRICE PER SHARE

RM0.19

MARKET CAP AT LISTING

RM78.0M

410.7M enlarged shares

PUBLIC ISSUE + OFFER FOR SALE

70.0M + 10.0M

New shares + existing shares sold

LISTING DATE

22 OCT

2026

ACE Market, Bursa Malaysia

TRAILING / ANNUALISED P/E

14.62x /

11.88x

FYE2025 / annualised FYE2026 basis

GROSS PROCEEDS (PUBLIC ISSUE)

RM13.30M

Accrues entirely to the Company

BUSINESS

What does RedPlanet actually do?

Geospatial Solutions

Collecting, analysing and mapping customers' geographical data — for operational planning, navigation, tracking and asset management, mainly for the power utilities sector.

SHARE OF FPE2026 GROUP REVENUE

41.2%

The largest segment, though its share is falling

Intelligent Rail Solutions

Its own proprietary, patented PIES® platform intrusion safety system, installed on Klang Valley LRT lines to detect human intrusion and protect passenger safety.

SHARE OF FPE2026 GROUP REVENUE

26.3%

Plus 32.6% from trading of ICT solutions/hardware

REVENUE MODEL

How RedPlanet makes money

Customer concentration has fallen sharply — a genuine de-risking trend, not just a good quarter

CUSTOMERS A + D, COMBINED (FPE2026 VS FYE2025)

46.3%

vs 80.0%

CUSTOMER A ALONE (FYE2023 VS FPE2026)

70.5%

vs 22.3%

ORDER BOOK AS AT LPD (GEOSPATIAL + RAIL)

RM51.74M

FINANCIALS

Financial statement at a glance

Audited historical results, FYE 2023–2025 (financial year ends 30 June)

FPE2026 REVENUE (9MO) VS FPE2025 (9MO)

+33.7%

FYE2025 VS FYE2024 (FULL YEAR)

-4.7%

PENDING TENDERS (11 BIDS, NOT YET WON)

RM132.1M

FINANCIALS

Profitability & cash flow

Margins are volatile project-to-project, but PAT margin has held a stable 15–17% band

FPE2026 PATAMI (9MO) VS FPE2025

RM4.97M

+39.7% YoY, 15.0% margin

GP MARGIN RANGE (FYE2023–FPE2026)

35.7%–

49.8%

Swings with project mix, not a steady decline

GEARING RATIO (FYE2024 VS FPE2026)

0.36x →

0.25x

Improving, moderate leverage

Profitability Held Up Through a Customer Handover

PAT margin has stayed in a tight 14.8%–16.7% band across FYE2023–FPE2026 even as the revenue mix shifted hard — geospatial's share of revenue fell from 76.9% to 41.2% while rail and ICT trading grew to fill the gap. That's a genuinely different signal from a company whose margins compress as a legacy customer fades; here the business diversified into new segments without giving up its margin.

GROWTH

Growth runway

A small player in a fast-growing geospatial market, and a larger player in a slower rail niche

GEOSPATIAL MARKET: REDPLANET'S SHARE (2025)

0.2%

RAIL SOLUTIONS MARKET: REDPLANET'S SHARE (2025)

2.6%

Geospatial Growing Faster (14.0% CAGR), Rail More Defensible

Malaysia's geospatial solutions industry is projected to grow at 14.0% CAGR through 2025, versus 6.2% CAGR for the intelligent rail solutions industry (RM494.3M in 2025, forecast RM557.2M by 2027). RedPlanet has real scale (2.6%) in the smaller, slower, but higher-barrier-to-entry rail market — and negligible share (0.2%) of the larger geospatial one, leaving room to grow into it.

CAPITAL

Capital position

Moderate, improving leverage — and unlike most ACE Market IPOs this year, an actual dividend track record

CASH & EQUIVALENTS (FPE2026)

RM7.39M

Down from RM15.15M in FYE2023

GEARING RATIO (FPE2026)

0.25x

Improved from 0.36x in FYE2024

DIVIDEND PAYOUT RATIO RANGE (FYE2023–FPE2026)

12.0%–

32.3%

Paid every year under review

No Formal Policy, But a Consistent Track Record

RedPlanet has no formal dividend policy, but unlike several recent ACE Market IPOs, it has actually paid dividends every year under review — FYE2023 through FPE2026 — with payout ratios ranging from 12.0% to 32.3% of PATAMI. It does not intend to declare further dividends prior to Listing, but the historical pattern is a real data point, not an absence.

VALUATION

Valuation

A real, disclosed peer set exists — RedPlanet's IPO price sits almost exactly at the peer average

TRAILING P/E (FYE2025)

14.62x

ANNUALISED P/E (FYE2026E)

11.88x

PEER AVERAGE P/E (5 COMPARABLES)

14.46x

Named comparable companies disclosed in the Prospectus (Bursa-listed, ICT services, <RM500M market cap)

Prospectus notes: no Bursa-listed company is principally engaged in both geospatial and intelligent rail solutions, so the closest ICT-services proxies under RM500M market cap were used. Peer range 6.15x–21.83x, average 14.46x.

TARGET PRICE

JJSP research view — indicative fair value

Method: peer-average multiple — a real, disclosed peer set exists for this IPO

Annualised FYE2026 EPS 1.6 sen × Peer Multiple = Fair Value

BEAR — 6.15X (AMTEL, PEER LOW)

RM0.10

-47% vs IPO price

BASE — 14.46X (PEER AVERAGE)

RM0.23

+21% vs IPO price

BULL — 21.83X (VETECE, PEER HIGH)

RM0.35

+84% vs IPO price

Method: Unlike most IPO prospectuses, this one discloses a real 5-company Bursa-listed peer set (ICT Zone Asia, Vetece, Pentech, OpenSys, Amtel). This scenario range applies the peer set's actual low, average and high P/E multiples to RedPlanet's own annualised FYE2026 EPS, rather than fabricating a multiple. The base case (peer average) already implies meaningful upside to the IPO price — a genuinely different starting point from IPOs priced above their peer set.�Re-rating catalysts: conversion of the RM132.1M in pending tenders into confirmed order book · continued fall in customer concentration reducing single-customer risk · re-rating toward the richer managed-services peers (Pentech, Vetece) as recurring revenue share grows.�De-rating risks: loss or non-renewal of Customer A or Customer D contracts · fixed-price rail contracts causing cost overruns · FYE2025 full-year revenue already fell 4.7% versus FYE2024, showing growth is not linear · re-rating downward toward the cheapest hardware-trading peer (Amtel) if margins compress.

IPO STRUCTURE

IPO structure & use of proceeds

70.0m new shares + 10.0m Offer for Sale shares — gross Public Issue proceeds of RM13.30m

61%

21%

18%

Business Expansion

RM8.13M · 61.1%

Estimated Transfer Expenses

RM2.80M · 21.1%

Working Capital

RM2.38M · 17.9%

LARGEST SHAREHOLDER POST-IPO

PVSB

21.3%

P.K. Senthil Kumar — no single majority holder

NEXT LARGEST SHAREHOLDERS

NESB 19.4%

Steve & Co 12.3%

Lian Wah Seng / Dato' Steve Wan

MORATORIUM SCHEDULE

6 + 6 Mo

100% locked 6 months, then ≥45% for 6 more

BULL CASE

Bull case

1

Customer Concentration Is Falling, Not Rising

Combined revenue from Customers A and D fell from 80.0% (FYE2025) to 46.3% (FPE2026) as the business genuinely diversified into new segments and customers.

2

A Real, Disclosed Peer Set — and RedPlanet's Own Forward P/E Sits Below It

The annualised P/E of 11.88x is below the 5-company peer average of 14.46x, unlike many IPOs priced with no comparable peer at all.

3

Margins Held Through a Business Mix Shift

PAT margin stayed in a 14.8%–16.7% band across four years even as geospatial's share of revenue fell from 76.9% to 41.2% — the diversification didn't cost profitability.

4

An Actual Dividend Track Record

Unlike several recent ACE Market IPOs, RedPlanet has paid dividends every year under review (12.0%–32.3% payout), even without a formal policy.

BEAR CASE

Bear case

1

Still Two Customers, Just Different Ones

Customers A and D together were still 46.3% of FPE2026 revenue — concentration has fallen, but has not disappeared, and both are single large counterparties (a utility and a government rail operator).

2

Short-Term, Project-Based Contracts Throughout

Geospatial solutions are sold mainly on contracts or purchase orders of 1–36 months with no obligation for repeat business; the RM51.74M order book is not a guarantee of future revenue.

3

Fixed-Price Rail Contracts Carry Cost-Overrun Risk

Intelligent rail solutions contracts are often fixed-price, exposing RedPlanet to cost overruns from technical difficulties, subcontractor delays or third-party integration issues.

4

Revenue Is Not a Straight Line Up

FYE2025 full-year revenue fell 4.7% versus FYE2024 despite the later quarterly rebound — the growth story is genuinely lumpy, project-dependent revenue, not a smooth trend.

CATALYSTS & RISKS

Catalysts & risks

Catalysts

Listing on ACE Market

22 October 2026 — transfer from LEAP Market

RM132.1M in Pending Tenders

11 bids awaiting decision, not yet in order book

Business Expansion Spend

RM8.13M to tender for larger-scale projects

Falling Customer Concentration

A trend, tracked across four periods, not a one-off

Risks

Customers A & D Still 46.3% of Revenue

Two large counterparties, no long-term contracts

FYE2025 Revenue Fell -4.7% YoY

Growth is project-driven and genuinely lumpy

Fixed-Price Rail Contracts

Cost-overrun exposure on intelligent rail projects

No Formal Dividend Policy

Track record exists, but nothing is guaranteed

The Bottom Line

RedPlanet is a small geospatial and intelligent rail solutions provider transferring from the LEAP Market to the ACE Market at 14.62x trailing earnings (11.88x annualised) — priced roughly in line with, and on a forward basis below, a real disclosed peer average of 14.46x, with customer concentration falling and profitability holding through a genuine business mix shift.

Long-Term Holders

Watch whether the RM132.1M in pending tenders converts into confirmed order book, and whether customer concentration keeps falling from here.

IPO Subscribers

Applications close 8 October 2026, 5:00pm — about ten days of runway. This is a small, thinly-traded ACE Market name; read the full risk factors, not just the peer table.

New Money Post-Listing

Watch FYE2026 full-year results (year ends 30 June) to confirm whether the 9-month revenue rebound holds for the full year.

Sources: RedPlanet Berhad IPO Prospectus dated 28 September 2026 (Sections 2, 3, 4, 8, 9); Independent Market Research Report by Providence Strategic Partners Sdn Bhd, within the Prospectus; Bursa Malaysia ACE Market listing documents.��This case study is produced by JJ Strategic Partners (JJSP) for educational purposes only. It does not constitute personalised investment advice. The JJSP target price / fair value view on slide 10 is a house research view, not advice tailored to any individual client. Investments carry risk including loss of capital. Past performance does not guarantee future results. Speak to your licensed investment advisor before acting on any information presented. This is an analysis of a prospective IPO based on prospectus disclosures — subscription is subject to the full Prospectus registered with Bursa Securities.

ECOSYS (MALAYSIA)

BERHAD

ACE MARKET, BURSA MALAYSIA · A JJSP IPO CASE STUDY

APPLICATIONS CLOSE 29 SEPTEMBER 2026, 5:00PM

RM0.27

IPO PRICE

RM154.3M

MARKET CAP AT LISTING

14 OCT

2026

LISTING DATE

SEPTEMBER 2026

IPO SNAPSHOT

EcoSys (Malaysia) Berhad, at a glance

Precision engineering & abatement systems for the pan-semiconductor industry · ACE Market listing

IPO PRICE PER SHARE

RM0.27

MARKET CAP AT LISTING

RM154.3M

571.4M enlarged shares

PUBLIC ISSUE SHARES

145.7M

25.5% of enlarged capital

LISTING DATE

14 OCT

2026

ACE Market, Bursa Malaysia

IMPLIED P/E AT IPO PRICE

13.78x

FYE2025 diluted EPS, 1.96 sen (headline)

GROSS PROCEEDS (PUBLIC ISSUE)

RM39.34M

Accrues entirely to the Company

BUSINESS

What does EcoSys actually do?

UHP Segment

Ultra-high purity fabrication of precision engineering components and sub-assembly modules for the fluid processing systems inside semiconductor fabs — ISO Class 5 cleanroom.

SHARE OF FYE2025 GROUP REVENUE

57.8%

The larger of the two segments by revenue

Abatement Segment

R&D, customisation, assembly, installation, testing and maintenance of abatement systems — EcoSys' own patented CDO, Vector, Marathon and Guardian brands, SEMI & CE certified.

SHARE OF FYE2025 GROUP REVENUE

42.2%

Up from just 25.7% in FYE2022 — the growth engine

REVENUE MODEL

How EcoSys makes money

Two customers, almost no long-term contracts, and near-total foreign-currency exposure

REVENUE FROM CUSTOMERS A & B, LATEST PERIOD

53.8%

SALES DENOMINATED IN FOREIGN CURRENCY, NO HEDGING

~99%+

LONG-TERM CONTRACTS WITH ANY CUSTOMER

None

FINANCIALS

Financial statement at a glance

Audited historical results, FYE 2022–2025 (financial year ends 31 December) — a lumpy, non-linear path

FYE2025 REVENUE (+22.7% YOY, A RECORD)

RM108.9M

FYE2023 TROUGH VS FYE2025 PEAK

+47.7%

BUT LATEST QUARTER (FPE2026 VS FPE2025)

-28.5%

FINANCIALS

Profitability & cash flow

FYE2025 was a genuine rebound — but the newest quarter cools off sharply

FYE2025 PROFIT AFTER TAX (+21.1% YOY)

RM11.2M

10.3% margin, vs 19.5% in FYE2022

FYE2025 PBT MARGIN

11.1%

Down from 21.4% in FYE2022, up from 10.8% in FYE2024

FPE2026 STUB PAT (VS RM4.36M FPE2025)

RM2.24M

-48.6% YoY

A Rebound Year, But the Newest Quarter Reverses It

FYE2025 revenue and PAT both grew by more than 20% year-on-year, and GP margin reached 23.9% — the best of the four audited years. But the first quarter of FYE2026 (FPE2026) reversed that momentum: revenue fell 28.5% and PAT fell 48.6% versus the same quarter a year earlier. Whether this is a one-quarter dip or the start of a new trend is the single most important open question for this IPO.

GROWTH

Growth runway

A small player across two differently-sized, differently-paced markets

UHP MARKET: ECOSYS' SHARE (2025)

0.6%

ABATEMENT MARKET: ECOSYS' SHARE (2025)

0.8%

Doubling Down on the Slower-Growing Segment

The Malaysia precision engineering market (UHP segment) is projected to grow at 10.8% CAGR to 2027, versus just 4.4% CAGR for the global abatement solutions market. Yet 43.2% of IPO proceeds go toward expanding the slower-growing but higher-margin, IP-protected abatement segment — a deliberate mix shift, not simply chasing the faster market.

CAPITAL

Capital position

Gearing falls to a comfortable 0.12x post-IPO — but dividends have already gone quiet

CASH & BANK BALANCES (31 MAR 2026)

RM12.87M

TOTAL BORROWINGS, PRO FORMA (AFTER IPO)

RM11.19M

Down from RM19.19M pre-IPO

GEARING RATIO, PRO FORMA (AFTER IPO)

0.12x

Comfortable, from 0.20x before IPO

No Formal Dividend Policy — And Payouts Have Already Stopped

EcoSys paid dividends of RM2.43M (21.0% payout) in FYE2022 and RM9.37M (65.3% payout) in FYE2023, funded from internally generated funds. No dividends have been declared or paid in FYE2024, FYE2025, or up to the date of this Prospectus, despite FYE2025 being a record profit year — there is no formal policy committing to resume payouts after listing.

VALUATION

Valuation

No comparable listed peer is disclosed — three ways to read the same FYE2025 earnings

P/E AT IPO PRICE (HEADLINE FYE2025)

13.78x

P/E EX TAX INCENTIVES (ILLUSTRATIVE, "CLEAN")

17.53x

DILUTION VS PRO FORMA NA/SHARE

40.74%

Basis of arriving at the IPO Price — three ways of reading the same business

No comparable listed peer is named anywhere in the Prospectus or the IMR Report — this valuation rests entirely on EcoSys' own historical multiple, not a peer average. Note the illustrative "clean" multiple (17.53x) is HIGHER than the headline (13.78x): tax incentives inflated recent reported PAT, so on an underlying basis the IPO is priced more richly than the headline number suggests.

TARGET PRICE

My personal view — indicative fair value

No listed peer exists — this scenario range flexes EcoSys' own disclosed multiples, not a peer average

FYE2025 Headline Diluted EPS 1.96 sen × Multiple = Fair Value

BEAR — 10.0X (Q1 SLOWDOWN CONFIRMS INTO A TREND)

RM0.20

-26% vs IPO price

BASE — 13.78X (IPO'S OWN HEADLINE MULTIPLE)

RM0.27

In line with IPO price

BULL — 17.53X (MARKET CREDITS THE "CLEAN" MULTIPLE)

RM0.34

+26% vs IPO price

Method: No listed peer is disclosed anywhere in the Prospectus or IMR Report, so this range flexes EcoSys' own disclosed multiples rather than a peer average. The base case simply reproduces the IPO's own basis (13.78x headline). The bull case applies the illustrative "clean", tax-incentive-adjusted multiple (17.53x) — the Prospectus' own more conservative earnings base, but a higher multiple, applied here to the headline EPS as an upside scenario if the market credits full run-rate quality. The bear case assumes the FPE2026 quarterly slowdown (-28.5% revenue, -48.6% PAT YoY) proves to be a trend, not a blip.�Re-rating catalysts: FPE2026 slowdown proves to be a one-quarter blip, with FYE2026 full-year results confirming the FYE2025 rebound · abatement segment (IP-protected, SEMI/CE-certified, higher margin) continuing to grow its share of the mix · customer concentration falling below 50% as India expansion and new accounts scale.�De-rating risks: FPE2026's revenue and profit reversal continues through the rest of FYE2026 · Customers A & B (53.8% of latest-period revenue) reduce or end orders with no long-term contracts in place · a currency swing hits margins given ~99%+ foreign-currency sales and purchases with zero hedging · no dividend since FYE2023 and no formal policy to resume one.

IPO STRUCTURE

IPO structure & use of proceeds

145.7m new shares (25.5% of enlarged capital) — gross Public Issue proceeds of RM39.34m

43%

20%

14%

13%

10%

Expansion of Abatement Segment

RM17.00M · 43.2%

Repayment of Bank Borrowings

RM8.00M · 20.3%

Estimated Listing Expenses

RM5.50M · 14.0%

Enhancement of Operational Capabilities

RM4.93M · 12.5%

India Expansion + Working Capital

RM3.91M · 9.9%

PUBLIC ISSUE

145.7M Shares

25.5% of enlarged capital, no Offer for Sale

CHAN CHEE WEI (MANAGING DIRECTOR) RETAINS

52.2%

Specified Shareholder, controlling post-listing

SOLARVEST (PRE-IPO INVESTOR, BURSA-LISTED) HOLDS

22.3%

6-month moratorium only, no second lock-in

BULL CASE

Bull case

1

Two-Segment Moat: Fabrication Plus Proprietary IP

ISO-certified UHP fabrication in an ISO Class 5 cleanroom, paired with its own patented, SEMI & CE-certified abatement brands (CDO, Vector, Marathon, Guardian) — a combination that is not trivial to replicate.

2

Backed by a Listed Solar EPC Player

Solarvest, a company listed on Bursa Malaysia, holds 22.3% as a pre-IPO investor following the SIW Manufacturing acquisition — an external endorsement from an established industry player.

3

FYE2025 Was a Genuine Rebound Year

Revenue grew 22.7% year-on-year to a record RM108.9M, PAT grew 21.1% to RM11.2M, and gross margin expanded to 23.9% — the strongest of the four audited years.

4

Reinvesting Into Its Highest-Margin, IP-Protected Segment

43.2% of IPO proceeds (RM17.0M) are earmarked to expand the branded abatement systems business, which has grown from 25.7% to 42.2% of the revenue mix since FYE2022.

BEAR CASE

Bear case

1

The Most Recent Quarter Reversed the Story

FPE2026 revenue fell 28.5% and PAT fell 48.6% year-on-year versus FPE2025 — the FYE2025 record-year momentum did not carry into the first quarter of FYE2026.

2

Customer Concentration Without Long-Term Contracts

Customers A & B made up 53.8% of the latest period's revenue, and EcoSys has no long-term contracts with any customer — orders can be reduced or stopped at any time.

3

Zero Currency Hedging on a Near-100% Foreign-Currency Business

Roughly 99%+ of both sales and purchases are denominated in foreign currencies, and EcoSys uses no hedging instruments — margins are directly exposed to FX swings.

4

40.74% Dilution and No Dividend Since FYE2023

IPO Price of RM0.27 versus pro forma NA/share of RM0.16; dividends stopped after FYE2023's 65.3% payout, with no formal policy committing to resume them.

CATALYSTS & RISKS

Catalysts & risks

Catalysts

Listing on ACE Market

14 October 2026 — first public price discovery

Abatement Segment Expansion

RM17.0M for components/modules, within 36 months

India Geographic Expansion

RM1.5M to grow overseas revenue base

Debt Paydown to 0.12x Gearing

RM8.0M repayment lowers financing risk

Risks

Q1 FYE2026 Revenue/Profit Reversal

-28.5% revenue, -48.6% PAT YoY — trend or blip?

Customers A & B = 53.8% of Revenue

No long-term contracts with either customer

Zero FX Hedging

~99%+ of sales & purchases in foreign currency

No Dividend Since FYE2023

No formal policy to resume payouts post-listing

The Bottom Line

EcoSys is a two-segment precision-engineering and abatement-systems supplier to the pan-semiconductor industry, priced at 13.78x trailing earnings (17.53x on a tax-incentive-adjusted "clean" basis) after a genuine FYE2025 rebound — but the most recent quarter reversed that momentum, and more than half of revenue still rests on two customers with no long-term contracts.

Long-Term Holders

Watch whether FPE2026's slowdown is a one-quarter blip or the start of a trend, and whether customer concentration falls below 50%, before treating this as a core holding.

IPO Subscribers

Applications close 29 September 2026, 5:00pm — five days of runway. Weigh the FYE2025 rebound against the FX and customer-concentration risk factors before subscribing.

New Money Post-Listing

Watch the FYE2026 full-year results for confirmation (or reversal) of the FYE2025 rebound, and track whether the abatement segment keeps gaining share of the revenue mix.

Sources: EcoSys (Malaysia) Berhad IPO Prospectus dated 23 September 2026 (Sections 2, 3, 4, 8); Independent Market Research Report by Providence Strategic Partners Sdn Bhd, within the Prospectus; Bursa Malaysia ACE Market listing documents.��This case study is produced by JJ Strategic Partners (JJSP) for educational purposes only. It does not constitute personalised investment advice. The JJSP target price / fair value view on slide 10 is a house research view, not advice tailored to any individual client. Investments carry risk including loss of capital. Past performance does not guarantee future results. Speak to your licensed investment advisor before acting on any information presented. This is an analysis of a prospective IPO based on prospectus disclosures — subscription is subject to the full Prospectus registered with Bursa Securities.

EVOCOM

BERHAD

ACE MARKET, BURSA MALAYSIA · A JJSP IPO CASE STUDY

APPLICATIONS CLOSE 14 SEPTEMBER 2026, 5:00PM

RM0.18

IPO PRICE

RM82.0M

MARKET CAP AT LISTING

28 SEP

2026

LISTING DATE

SEPTEMBER 2026

IPO SNAPSHOT

Evocom Berhad, at a glance

Flexible staffing & network support services for e-commerce logistics · ACE Market listing

IPO PRICE PER SHARE

RM0.18

MARKET CAP AT LISTING

RM82.0M

455.6M enlarged shares

PUBLIC ISSUE SHARES

113.9M

25.00% of enlarged capital

LISTING DATE

28 SEP

2026

ACE Market, Bursa Malaysia

IMPLIED P/E AT IPO PRICE

26.09x

FYE2025 audited EPS, 0.69 sen

GROSS PROCEEDS (PUBLIC ISSUE)

RM20.50M

Accrues entirely to the Company

BUSINESS

What does Evocom actually do?

Flexible Staffing

Services

Manpower supply to support the logistics operations of e-commerce platforms — contingent workers employed by Evocom, deployed at customers' premises.

SHARE OF FYE2025 GROUP REVENUE

86.9%

The core of the business by far

Network Support

Services

Last-mile delivery, transhipment, parcel shipment and hub management — the logistics 'last node' that gets e-commerce parcels to customers.

SHARE OF FYE2025 GROUP REVENUE

13.1%

Last-mile, transhipment, parcel & hub ops combined

REVENUE MODEL

How Evocom makes money

One dominant customer sits behind almost all of it — FYE2025 revenue by segment

REVENUE FROM SPX, ITS SINGLE LARGEST CUSTOMER

> 80%

SPX MANPOWER SECONDMENT AGREEMENT EXPIRES

31 MAR

2027

PRC TRANSHIPMENT BUSINESS RESTS ON JUST

5 Customers

FINANCIALS

Financial statement at a glance

Audited historical combined results, FYE 2022–2025 (financial year ends 31 December)

FYE2025 REVENUE (-12.4% YOY)

RM183.4M

DOWN FROM FYE2024 PEAK OF RM209.4M

-12.4%

MOST RECENT 4-MONTH STUB (YOY)

-7.9%

FINANCIALS

Profitability & cash flow

Margins have thinned every year under review — profit is falling faster than revenue

FYE2025 PROFIT AFTER TAX (-45.7% YOY)

RM3.36M

1.83% margin, down from 3.73% in FYE2022

FYE2025 PBT MARGIN

2.78%

Down from 5.10% in FYE2022

FPE2026 STUB PAT (VS RM1.01M FPE2025)

RM0.78M

-23.3% YoY

The One-Off Adjustment Softens, But Doesn't Erase, the Trend

Strip out RM1.86M of one-off listing expenses and FYE2025 PAT would have been RM5.67M (adjusted PAT margin 3.09%) instead of RM3.36M — a fairer read of underlying profitability. But even on this adjusted basis, margins are still thinner than FYE2022's 3.73%, and the FPE2026 adjusted PAT margin (2.33%) is lower still. The decline is real, not just an IPO-cost artefact.

GROWTH

Growth runway

Evocom already holds a large share of a small, slow-growing industry

INDUSTRY CAGR (2025E–2028E)

3.7%

EVOCOM'S SHARE OF THIS INDUSTRY (2025)

12.2%

A Big Fish in a Small, Slow Pond

At 12.2% of a RM1.5bn industry growing just 2.3%–3.7% a year, further growth likely has to come from diversifying beyond the core industry definition — against Malaysia's RM179.2bn transport & storage industry, Evocom's share is just 0.1%.

CAPITAL

Capital position

A small, modestly net-cash balance sheet — but no disclosed forward dividend floor

CASH & BANK BALANCES (31 MAR 2026)

RM6.81M

TOTAL BORROWINGS (31 MAR 2026)

RM5.24M

NET CASH POSITION

RM1.57M

A thin buffer relative to revenue scale

No Formal Dividend Policy

Unlike some ACE Market IPOs that disclose a forward payout floor, Evocom has no formal dividend policy. Historical payouts have swung from 22.27% to 79.95% of PAT, then collapsed to just 7.56% in FYE2025 as profit fell — dividends here have tracked profit down, not offered a floor against it.

VALUATION

Valuation

No directly comparable listed peer exists — the Prospectus says so itself

P/E AT IPO PRICE (UNADJUSTED FYE2025 EPS)

26.09x

P/E EX ONE-OFF LISTING COSTS (ADJUSTED)

14.46x

DILUTION VS PRO FORMA NA/SHARE

50.0%

Basis of arriving at the IPO Price — three ways of reading the same business

No comparable listed peer exists: per the IMR Report itself, identified industry players operate across multiple segments and are not comparable to Evocom's manpower-led model — so this valuation rests on the IPO's own multiple, not a peer average.

TARGET PRICE

JJSP research view — indicative fair value

No listed peer exists — this scenario range flexes the IPO's own multiple, not a peer average

Annualised FYE2026 EPS 0.68 sen × Multiple = Fair Value

BEAR — 18.0X (SPX RISK CRYSTALLISES)

RM0.12

-33% vs IPO price

BASE — 26.09X (IPO'S OWN MULTIPLE)

RM0.18

In line with IPO price

BULL — 32.0X (DIVERSIFIES BEYOND SPX)

RM0.22

+22% vs IPO price

Method: No listed peer trades a comparable multiple — the Prospectus itself states identified players aren't comparable. The base case applies the IPO's own justified 26.09x multiple to the most current annualised earnings base (FPE2026, illustrative only, not a forecast). Bull/bear cases flex that multiple for the catalysts and risks below rather than a peer average.�Re-rating catalysts: early, clean renewal of the SPX Manpower Secondment Agreement beyond March 2027 · tech platform (RM3.0M) reducing cost-to-serve · successful PRC transhipment diversification beyond today's 5 customers.�De-rating risks: SPX (>80% of revenue) non-renewal or reduced terms at the March 2027 expiry · revenue and PAT have both declined for two straight periods · PBT margin nearly halved since FYE2022, with no formal dividend policy to cushion the wait.

IPO STRUCTURE

IPO structure & use of proceeds

113.9m new shares (25.00% of enlarged capital) — gross Public Issue proceeds of RM20.50m

35%

22%

15%

15%

14%

Working Capital – Flexible Staffing

RM7.20M · 35.1%

Listing Expenses

RM4.46M · 21.8%

Tech Platform Development

RM3.00M · 14.6%

Air Freight Transhipment Expansion

RM3.00M · 14.6%

Nilai HQ + General Working Capital

RM2.84M · 13.9%

PUBLIC ISSUE VS OFFER FOR SALE

113.9M / 22.0M

New shares vs Selling Shareholder's shares

IAN TAN (EXECUTIVE DIRECTOR/CEO) RETAINS

63.35%

Controlling shareholder post-listing

MORATORIUM SCHEDULE

6 + 6 Mo

100% locked 6 months, then ≥45% for 6 more

BULL CASE

Bull case

1

A Large, Entrenched Operator

12.2% share of Malaysia's entire RM1.5bn e-commerce logistics support industry — real scale most local competitors can't match.

2

Cheaper Than the Headline Multiple Suggests

Strip out RM1.86M of one-off listing costs and FYE2025 PAT would have been RM5.67M, implying 14.46x rather than the headline 26.09x.

3

Cash-Generative, Low-Capex Model

A people-and-network business with modest capital needs — net cash of RM1.57M even after historical dividends of up to 79.95% of PAT.

4

Real, If Small, Diversification Plans

RM3.0M earmarked for the PRC transhipment business and RM3.0M for a technology platform, both aimed at reducing reliance on the core staffing business.

BEAR CASE

Bear case

1

One Customer Is Over 80% of Revenue

SPX has supplied more than 80% of revenue every year under review. Its Manpower Secondment Agreement expires 31 March 2027 — six months after listing, with no guaranteed renewal.

2

Revenue and Profit Are Both Shrinking

Revenue fell 12.4% in FYE2025 and a further 7.9% in the latest stub; PAT fell 45.7% in FYE2025 and 23.3% in the stub. This is a business in decline, not growth.

3

Margins Have Nearly Halved

PBT margin fell from 5.10% in FYE2022 to just 2.57% in the latest stub — a structurally thin, labour-cost-driven margin with little pricing power.

4

50% Dilution Into a Single-Shareholder-Controlled Company

IPO price RM0.18 vs pro forma NA/share of RM0.09, while Ian Tan alone retains 63.35% of the company post-listing.

CATALYSTS & RISKS

Catalysts & risks

Catalysts

Listing on ACE Market

28 September 2026 — first public price discovery

Tech Platform Investment

RM3.0M to modernise operations, over 3 years

PRC Transhipment Expansion

RM3.0M to grow beyond today's 5 customers

Nilai HQ Consolidation

RM1.5M new headquarters, within 12 months

Risks

SPX Contract Expires 31 Mar 2027

Renewal not guaranteed; >80% of revenue at stake

Revenue & Profit Both Declining

FYE2025 revenue -12.4%, PAT -45.7% YoY

No Formal Dividend Policy

Ad-hoc payouts fell to 7.56% of PAT in FYE2025

No Comparable Listed Peer

Prospectus itself says identified players aren't comparable

The Bottom Line

Evocom is a large, entrenched e-commerce staffing operator priced at 26.1x trailing earnings (14.5x ex-listing costs) — but revenue and profit have both declined for two straight periods, and more than 80% of revenue rests on a single customer contract expiring six months after listing.

Long-Term Holders

The declining revenue and profit trend, and the lack of a formal dividend policy, argue for waiting on SPX renewal clarity before treating this as a buy-and-hold position.

IPO Subscribers

Applications close 14 September 2026, 5:00pm — six days of runway. Read the risk factors, not just the growth headline, before subscribing.

New Money Post-Listing

Watch for news on the SPX Manpower Secondment Agreement renewal ahead of its 31 March 2027 expiry — that single event will move this stock more than anything else.

Sources: Evocom Berhad IPO Prospectus dated 3 September 2026 (Sections 2, 3, 4, 9, 12); accountants' report and Independent Market Research excerpts within the Prospectus; Bursa Malaysia ACE Market listing documents.��This case study is produced by JJ Strategic Partners (JJSP) for educational purposes only. It does not constitute personalised investment advice. The JJSP target price / fair value view on slide 10 is a house research view, not advice tailored to any individual client. Investments carry risk including loss of capital. Past performance does not guarantee future results. Speak to your licensed investment advisor before acting on any information presented. This is an analysis of a prospective IPO based on prospectus disclosures — subscription is subject to the full Prospectus registered with Bursa Securities.

GTA HOLDINGS

BERHAD

ACE MARKET, BURSA MALAYSIA · A JJSP IPO CASE STUDY

APPLICATIONS CLOSE 26 AUGUST 2026, 5:00PM

RM0.35

IPO PRICE

RM452.0M

MARKET CAP AT LISTING

8 SEP

2026

LISTING DATE

AUGUST 2026

IPO SNAPSHOT

GTA Holdings, at a glance

Aerospace & defence engine MRO · Sole authorised Safran & EPI distributor in Malaysia

IPO PRICE PER SHARE

RM0.35

MARKET CAP AT LISTING

RM452.0M

1.29B enlarged shares

SHARES UNDER IPO OFFER

329.0M

25.48% of enlarged capital

LISTING DATE

8 SEP

2026

ACE Market, Bursa Malaysia

IMPLIED P/E AT IPO PRICE

11.18x

FYE2025 audited diluted EPS, 3.13 sen

ORDER BOOK (AS AT LPD)

RM93.9M

RM89.2M recognisable within 1 year

BUSINESS

What does GTA actually do?

Helicopter & Fixed-Wing

Engine MRO

Maintenance, repair and overhaul for Safran helicopter engines and EPI's Fixed-wing Engine 1, plus corrective ad-hoc maintenance.

SOLE AUTHORISED DISTRIBUTOR IN MALAYSIA

Safran + EPI

Safran CMC since 2013 · EPI AMO since 2019

Government &

Defence Customer Base

Revenue is overwhelmingly driven by Malaysia's Ministry of Defence, via long-term service contracts of up to 5 years.

GOVERNMENT SHARE OF FPE2026 REVENUE

95.4%

Via Mindef Service Branch 1 & 2

REVENUE MODEL

How GTA makes money

A mix of recurring service fees and lumpy equipment sales — FYE2025 revenue by type

GOVERNMENT REVENUE TREND (FYE22 → FPE26)

78.3% → 95.4%

FOREIGN-CURRENCY PURCHASES (FPE2026, MOSTLY EUR)

91.7%

LONG-TERM CUSTOMER CONTRACTS

Up to 5 Yrs

FINANCIALS

Financial statement at a glance

Audited historical combined results, FYE 2022–2025 (financial year ends 31 December)

FYE2025 REVENUE (+40.2% YOY)

RM331.8M

3-YEAR REVENUE CAGR (FYE22→FYE25)

~37.0%

MOST RECENT 4-MONTH STUB GROWTH (YOY)

+101.0%

FINANCIALS

Profitability & cash flow

Consistently double-digit margins, with the most recent stub period the strongest yet

FYE2025 PROFIT AFTER TAX

RM40.45M

12.2% margin, up from 10.6% in FYE2022

FYE2025 PBT MARGIN

16.3%

Peaked at 20.5% in FYE2024

FPE2026 STUB PAT (VS RM5.29M FPE2025)

RM12.53M

Real Dividends, Not Just Paper Profit

GTA paid out RM9.5M, RM4.0M, RM21.0M and RM38.0M in dividends across FYE2022–2025 — all funded from internally generated cash. The Board intends a forward policy of no less than 33% of annual audited PAT, a genuine income angle most ACE Market IPOs don't offer.

GROWTH

Growth runway

A large, growing industry — and GTA holds a small slice of it today

INDUSTRY CAGR (2026E–2030E)

9.9%

GTA'S SHARE OF MALAYSIA MRO INDUSTRY (2025)

2.4%

New Geographies Just Opened Up

A July 2026 MOU with Safran HE puts GTA on track to become its authorised Brunei distributor, alongside planned Middle East joint ventures and landing gear/wheels/brakes MRO expansion.

CAPITAL

Capital position

Gearing ticked up in FPE2026 on a property purchase — otherwise a clean balance sheet

GEARING RATIO (30 APR 2026)

0.33x

Up from 0.01x — new property loan

CASH & BANK BALANCES

RM9.16M

As at 30 April 2026

FORWARD DIVIDEND POLICY

≥33%

Of annual audited PAT, Board's stated floor

A Growth Story With a Yield Floor

Unlike most ACE Market IPOs, GTA has a genuine multi-year dividend track record and a disclosed forward payout floor — while RM25.0M of IPO proceeds funds a new facility beside its largest customer's own compound.

VALUATION

Valuation

No direct listed peer exists — benchmarked against named private comparables from the IMR report

P/E AT IPO PRICE (FYE2025 EPS)

11.18x

PREMIUM VS RM0.10 NA/SHARE

~71.4%

PAT MARGIN VS NAMED PEERS (FYE2025)

12.2%

Named industry peer benchmarking (Protégé Associates IMR Report)

TARGET PRICE

JJSP research view — indicative fair value

No listed peer trades a comparable P/E — this is a scenario range, not a single forced number

FYE2025 EPS 3.13 sen × Multiple = Fair Value

BEAR — 9.0X (CONCENTRATION RISK BITES)

RM0.28

-20% vs IPO price

BASE — 11.18X (IPO'S OWN MULTIPLE)

RM0.35

In line with IPO price

BULL — 14.0X (MOAT + YIELD RE-RATE)

RM0.44

+25% vs IPO price

Method: No listed peer trades a comparable P/E, so the base case applies the IPO's own justified 11.18x multiple to FYE2025 EPS — the only rigorously disclosed anchor pre-listing. Bull/bear cases apply illustrative multiples reflecting the catalysts and risks below, not a peer average.�Re-rating catalysts: sole Safran/EPI distributor moat · 2.4% share of a 9.9%-CAGR industry · Brunei MOU + Middle East/landing-gear expansion · disclosed ≥33% dividend floor.�De-rating risks: 95.4% of FPE2026 revenue from one Government customer · rising EUR/FX exposure (91.7% of purchases) · thin free float once trading begins.

IPO STRUCTURE

IPO structure & use of proceeds

329.0m shares (25.48% of enlarged capital) on offer — gross Public Issue proceeds of RM71.75m

35%

34%

14%

8%

9%

New Operating Facility

RM25.00M · 34.8%

Working Capital

RM24.15M · 33.7%

Middle East MRO Expansion

RM10.00M · 13.9%

Landing Gear MRO Expansion

RM5.90M · 8.2%

Listing Expenses

RM6.70M · 9.3%

PUBLIC ISSUE VS OFFER FOR SALE

205M / 124M

New shares vs existing shareholders' shares

DATO' NONEE (MD/CEO) RETAINS

51.8%

Controlling shareholder post-listing

MORATORIUM SCHEDULE

6 + 6 Mo

100% locked 6 months, then ≥45% for 6 more

BUTTERFIELD FB

BERHAD

ACE MARKET, BURSA MALAYSIA · A JJSP IPO CASE STUDY

RM0.48

IPO PRICE

RM384.0M

MARKET CAP AT LISTING

15 SEP

2026

LISTING DATE

AUGUST 2026

IPO SNAPSHOT

Butterfield FB Berhad, at a glance

Coffee & tea extract powder blend manufacturer · Food ingredients trading · Malaysia & Thailand

IPO PRICE PER SHARE

RM0.48

MARKET CAP AT LISTING

RM384.0M

800.0M enlarged shares

SHARES UNDER IPO OFFER

222.0M

27.75% of enlarged capital

LISTING DATE

15 SEP

2026

ACE Market, Bursa Malaysia

IMPLIED P/E AT IPO PRICE

12.63x

FY2026 diluted EPS, 3.8 sen

MANUFACTURING TRACK RECORD

17 Yrs

Since 2009 · Group roots to 1983

BUSINESS

What does Butterfield actually do?

Coffee & Tea Extract

Powder Blends

Formulates, blends and packs custom coffee & tea extract powder blends under the 'Butterfield' house brand for business end-users.

SHARE OF FY2026 REVENUE

78.1%

Core segment · Halal-certified by JAKIM

Food Ingredients &

Beverage Premix Trading

Sources and resells dairy/non-dairy ingredients, food additives and instant beverage premixes to complement the core blends business.

SHARE OF FY2026 REVENUE

21.9%

Higher-margin segment · 28.2% GP margin

REVENUE MODEL

How Butterfield makes money

Manufactured to purchase order for business end-users — not a consumer-facing brand

TOP 5 CUSTOMER CONCENTRATION (FY2026)

37.4%

LARGEST CUSTOMER — AIK CHEONG GROUP

16.6%

GEOGRAPHIC SPLIT (FY2026)

MY 57% / TH 38%

FINANCIALS

Financial statement at a glance

Audited consolidated results, FYE 2023–2026 (financial year ends 30 April)

FY2026 REVENUE (+10.9% YOY)

RM272.1M

3-YEAR REVENUE CAGR (FY23→FY26)

~40.6%

FY2026 GROSS MARGIN (VS 18.8% FY23)

21.7%

FINANCIALS

Profitability & cash flow

Margins expanded every year — but operating cash flow lagged profit for two straight years before FY2026

FY2026 PROFIT AFTER TAX

RM35.04M

12.9% margin, up from 9.7% in FY2023

FY2026 EBITDA

RM47.16M

17.3% margin, +15.6% vs FY2025

FY2026 OPERATING CASH FLOW

RM25.65M

Recovered from -RM5.92M in FY2025

Two Years of Cash Flow Lagging Profit, Now Reversed

Rapid inventory and receivables build (inventory +RM23.6M in FY2025 alone) pushed operating cash flow negative in both FY2024 and FY2025 despite rising PAT. FY2026 swung back to +RM25.65M as payables grew — a trend worth confirming holds into FY2027.

GROWTH

Growth runway

New capacity just came online — the next leg of growth depends on filling it

FY2026 PRODUCTION UTILISATION (2 NEW LINES ADDED)

71.7%

FY2026 STORAGE UTILISATION (STILL TIGHT)

93.9%

Matcha Is the New Growth Line

A dedicated 312 MT/year matcha powder blend line launched Feb 2026, running at just 20.4% utilisation — riding the global matcha demand wave with room to scale.

CAPITAL

Capital position

Essentially debt-free — the IPO is funding expansion, not fixing a balance sheet

GEARING RATIO (FYE 2026)

<0.1x

Total borrowings of just RM12,000

CASH & BANK BALANCES

RM19.15M

As at 30 April 2026

FY2026 DIVIDEND (PRE-IPO)

RM30.0M

No formal policy; none planned pre-Listing

Growth Story, Not a Yield Story

The RM30.0 million dividend paid in FY2026 was a pre-IPO distribution to existing shareholders, funded from internal cash — not a signal of an ongoing payout culture. Post-listing, expect proceeds redeployed into capacity and M&A, not dividends.

VALUATION

Valuation

Priced off historical FY2026 earnings, net of a near debt-free balance sheet

P/E AT IPO PRICE (ENLARGED BASE)

12.63x

EV/EBITDA (NET OF CASH)

7.74x

PREMIUM VS RM0.25 NA/SHARE

~47.9%

Named industry peer benchmarking (Smith Zander IMR Report)

IPO STRUCTURE

IPO structure & use of proceeds

222.0m shares (27.75% of enlarged capital) on offer — gross Public Issue proceeds of RM72.00m

53%

21%

18%

8%

Working Capital

RM37.80M · 52.5%

Bukit Minyak Expansion

RM15.20M · 21.1%

Strategic Investments / M&A

RM13.00M · 18.1%

Listing Expenses

RM6.00M · 8.3%

PUBLIC ISSUE VS OFFER FOR SALE

150M / 72M

New shares vs existing shareholders' shares

PROMOTERS RETAIN (4 INDIVIDUALS)

~79.0%

Yeap and Lee families post-listing

MORATORIUM SCHEDULE

6 + 6 Mo

100% locked 6 months, then ≥45% for 6 more

BULL CASE

Bull case

1

Margins Expanding, Not Compressing

Gross margin rose 18.8% → 21.7% and PAT margin 9.7% → 12.9% over FY2023–26 — the opposite of the usual hyper-growth trade-off.

2

Best-in-Class Among Named Peers

12.9% PAT margin — 2nd highest of 5 named industry players in the IMR report, on the largest revenue base of the group.

3

Essentially Debt-Free

Gearing under 0.1x with RM19.15M cash on hand — the IPO is genuine growth capital, not a balance-sheet repair.

4

Fresh Capacity, Untapped Matcha Line

2 new lines added in FY2026 plus a dedicated 312 MT matcha line running at just 20.4% utilisation — real room to grow into demand.

BEAR CASE

Bear case

1

FY2025's Growth Wasn't All Organic

The revenue base was reshaped by an internal transfer of Golden Chemical FB's trading business on 1 May 2024, adding RM50.3M — FY2026 growth normalised to just +10.9%.

2

Cash Conversion Has Been Rocky

Operating cash flow was negative in both FY2024 (-RM5.7M) and FY2025 (-RM5.9M) despite rising profit, as inventory and receivables grew faster than sales.

3

Very Closely Held Post-IPO

Four individuals from the Yeap and Lee families retain ~79% of the enlarged capital — thin free float typical of ACE Market small caps.

4

Related-Party Supply Dependency

Instant beverage premixes and some food ingredients are sourced from an appointed Thai manufacturer that is a related party — a governance watch item.

CATALYSTS & RISKS

Catalysts & risks

Catalysts

Listing on ACE Market

15 September 2026 — first public price discovery

Bukit Minyak Expansion Funded

RM15.2M earmarked to relieve the 93.9% storage bottleneck

Matcha Line Ramp-Up

312 MT/year capacity at only 20.4% utilisation — clear runway

Fast-Growing Home Market

Malaysia coffee/tea extract industry growing 15.65% CAGR

Risks

No Prior Trading Market

First-day price discovery risk, typical of small ACE IPOs

FX & Commodity Price Swings

38% of revenue from Thailand; input coffee prices spiked in FY2025

Storage Still Near Capacity

93.9% utilisation even after FY2026 expansion completes

Concentrated Ownership

Promoters retain ~79% of enlarged capital post-listing

The Bottom Line

Butterfield is a profitable, debt-free F&B ingredients manufacturer with margins that are expanding rather than compressing — priced at 12.6x FY2026 earnings, but very closely held and still working through a bumpy cash-conversion cycle.

Long-Term Holders

Debt-free balance sheet and expanding margins support patient sizing for a sub-RM400M cap with a ~79% closely-held float.

IPO Subscribers

Expect volatility once the 6-month moratorium starts releasing founder supply from March 2027.

New Money Post-Listing

Watch FY2027 operating cash flow and storage utilisation to confirm the FY2026 recovery holds.

Sources: Butterfield FB Berhad IPO Prospectus dated 18 August 2026 (Sections 2, 4, 7, 9, 12); Independent Market Research Report, Smith Zander International Sdn Bhd, completed 20 July 2026; Bursa Malaysia ACE Market listing documents.��This case study is produced by JJ Strategic Partners (JJSP) for educational purposes only. It does not constitute personalised investment advice. Investments carry risk including loss of capital. Past performance does not guarantee future results. Speak to your licensed investment advisor before acting on any information presented. This is an analysis of a prospective IPO based on prospectus disclosures — subscription is subject to the full Prospectus registered with the Securities Commission Malaysia.

PIONEER HEAT

HOLDINGS BERHAD

ACE MARKET, BURSA MALAYSIA · A JJSP IPO CASE STUDY

RM0.25

IPO PRICE

RM86.7M

MARKET CAP AT LISTING

17 SEP

2026

LISTING DATE

AUGUST 2026

IPO SNAPSHOT

Pioneer Heat Holdings, at a glance

Mechanical & civil engineering contractor · Oil & gas, petrochemical, utility, manufacturing · Malaysia

IPO PRICE PER SHARE

RM0.25

MARKET CAP AT LISTING

RM86.7M

346.9M enlarged shares

SHARES UNDER IPO OFFER

104.05M

30.0% of enlarged capital

LISTING DATE

17 SEP

2026

ACE Market, Bursa Malaysia

IMPLIED P/E AT IPO PRICE

10.55x

FY2026 enlarged EPS, 2.37 sen

OPERATING HISTORY

29 Yrs

Founded 1997 · IPO entity est. 2019

BUSINESS

What does Pioneer actually do?

Mechanical Engineering

Services

Piping, heat treatment, flange management and NDT inspection for oil & gas and petrochemical plants.

SHARE OF FY2026 REVENUE

75.5%

Piping 67.7% · Specialised services 7.8%

Civil Engineering

Projects

Construction of industrial facilities for institutional and government-linked clients.

SHARE OF FY2026 REVENUE

24.5%

RM12.28M unbilled order book

REVENUE MODEL

How Pioneer makes money

Project-based revenue: purchase orders and contracts, billed on cost-to-complete — not recurring revenue

PIPING VS SPECIALISED SPLIT (FY2026)

67.7% / 7.8%

TOP 3 CUSTOMER CONCENTRATION (FY24–26)

43%–55%

UNBILLED ORDER BOOK (≈52% OF FY26 REV.)

RM50.4M

FINANCIALS

Financial statement at a glance

Audited consolidated results, FYE 2023–2026 (financial year ends 31 March)

FY2026 REVENUE (+127.3% YOY)

RM97.7M

3-YEAR REVENUE CAGR (FY23→FY26)

~83%

FY2026 GROSS MARGIN (VS 33.2% FY24)

24.2%

FINANCIALS

Profitability & cash flow

PAT grew faster than the top line through FY2025, then normalised in FY2026 as the business scaled

FY2026 PROFIT AFTER TAX

RM8.21M

8.4% margin, vs 12.0% in FY2025

FY2026 EBITDA

RM14.38M

+62.6% vs FY2025 (RM8.84M)

FY2026 OPERATING CASH FLOW

RM3.52M

Down from RM5.94M in FY2025

Cash Flow Is Lagging Profit

Trade receivables and contract assets rose from RM9.1M to RM24.9M as growth accelerated, pulling FY2026 operating cash flow (RM3.52M) well below PAT (RM8.21M) — worth tracking into FY2027.

GROWTH

Growth runway

No formal guidance is disclosed pre-IPO — visibility comes from the order book and the industry backdrop

MECHANICAL ENGINEERING CAGR (2022→2025E)

8.6%

CIVIL ENGINEERING CAGR (2022→2025)

11.5%

Tiny Share, Big Runway

14 Petronas plant turnarounds run 2026–2028 and a new LNG terminal opens 2027 — Pioneer holds just 0.85% / 0.05% share of these markets today.

CAPITAL

Capital position

No committed dividend policy — Pioneer is funding growth through the IPO, not shareholder returns

GEARING RATIO (31 MAR 2026)

0.72x

RM15.38M total borrowings

HISTORICAL DIVIDEND PAYOUT

28%–40%

FY2024 & FY2025 only — none for FY2026

CASH & BANK BALANCES

RM7.07M

As at 31 March 2026

Growth Story, Not a Yield Story

No dividend is planned before listing — the RM21.68M raised is being redeployed straight into a new headquarters, a Sarawak office and machinery.

VALUATION

Valuation

Priced off historical FY2026 earnings — no forward guidance or analyst consensus exists yet

IMPLIED P/E, ENLARGED BASE

10.55x

IMPLIED P/E, PRE-IPO BASE

7.91x

DILUTION VS RM0.11 NA/SHARE

56%

Peer benchmarking — net profit margin (Smith Zander IMR)

IPO STRUCTURE

IPO structure & use of proceeds

104.05m shares (30.0% of enlarged capital) on offer — gross Public Issue proceeds of RM21.68m

36%

18%

18%

17%

10%

Working Capital

RM7.90M · 36.4%

New Sendayan HQ

RM4.00M · 18.5%

Machinery & Equipment

RM4.01M · 18.5%

Listing Expenses

RM3.70M · 17.1%

New Sarawak Office

RM2.07M · 9.5%

PUBLIC ISSUE VS OFFER FOR SALE

25% / 5%

New shares vs existing shareholders' shares

SPECIFIED SHAREHOLDERS RETAIN

68.5%

Founding Wong family stake post-listing

MORATORIUM SCHEDULE

6 + 6 Mo

100% locked 6 months, then ≥45% for 6 more

BULL CASE

Bull case

1

Explosive, Self-Funded Growth

Revenue grew RM16.0M → RM97.7M in 3 years (~83% CAGR), up 127% in FY2026 alone.

2

Best Margins Among Named Peers

8.4% net margin — the highest of 6 named competitors; two peers post negative margins.

3

Revenue Already on the Books

RM50.4M unbilled order book — about 52% of FY2026 revenue — a running start into FY2027.

4

Structural Tailwind, Tiny Share

Industry growing 8.6%–11.5% CAGR with 14 Petronas turnarounds through 2028 — Pioneer holds under 1% share.

BEAR CASE

Bear case

1

Margins Are Compressing

Gross margin fell 33.2% → 24.2% in two years as subcontractor costs jumped to 86.8% of purchases.

2

Structural Customer Concentration

Top 3 customers supplied 43%–55% of revenue each of the last 3 years — a purchase-order business.

3

New Investors Buy In Diluted

RM0.25 IPO price vs RM0.11 pro forma NA/share means 56% immediate paper dilution.

4

Two One-Off Drags After Listing

~RM3.70M of listing costs hit FY2027 profit; a new Petronas licence rule threatens a RM5.01M contract.

CATALYSTS & RISKS

Catalysts & risks

Catalysts

Listing on ACE Market

17 September 2026 — first public price discovery

Capacity Expansion Funded

New Sendayan HQ + Sarawak office enable bigger bids

14 Petronas Turnarounds

Scheduled across domestic plants, 2026–2028

3rd National LNG Terminal

Operational 2027 — new downstream demand

Risks

No Prior Trading Market

First-day price discovery risk, typical of small ACE IPOs

Concentrated Ownership

Specified Shareholders retain ~68.5% post-listing

Tiny Market Share

0.85% mechanical, 0.05% civil market share

Purchase-Order Revenue Model

No assurance of renewal; 3 customers dominate revenue

The Bottom Line

Pioneer is a small, fast-growing niche contractor riding Malaysia's oil & gas maintenance cycle — priced at a reasonable 10.6x FY2026 earnings, but concentrated in 3 customers and showing early margin pressure.

Long-Term Holders

Order book + Petronas cycle offer multi-year visibility — size for a sub-RM90M cap with a 68.5% closely-held float.

IPO Subscribers

Expect volatility once the 6-month moratorium starts releasing founder supply.

New Money Post-Listing

Watch FY2027 for margin stabilisation and resolution of the new Petronas licence requirement.

Sources: Pioneer Heat Holdings Berhad IPO Prospectus (Sections 4, 6, 7, 8, 9, 10, 12); Independent Market Research Report, Smith Zander International Sdn Bhd, 22 July 2026; Bursa Malaysia ACE Market listing documents.��This case study is produced by JJ Strategic Partners (JJSP) for educational purposes only. It does not constitute personalised investment advice. Investments carry risk including loss of capital. Past performance does not guarantee future results. Speak to your licensed investment advisor before acting on any information presented. This is an analysis of a prospective IPO based on prospectus disclosures — subscription is subject to the full Prospectus registered with the Securities Commission Malaysia.

UNITED ASIAPAC

ENERGY BERHAD

Oil & Gas Well Intervention | IPO Analysis

IPO PRICE

RM0.35

MARKET CAP

RM192.5M

PE (ANN.)

8.8x

MARKET SHARE

21%

PROCEEDS

RM48.7M

VERDICT: SUBSCRIBE

ACE Market | Bursa Malaysia | Listing 19 Aug 2026 | Shariah Compliant | 100% Bumiputra

COMPANY OVERVIEW

What Does United Asiapac Do?

They rescue stuck equipment from oil wells and safely close old wells for Malaysia's biggest oil companies.

Company Profile

Sector

Oil & gas well intervention services

Bases

Kemaman (Terengganu) + Labuan

Boss

Ahmad Fadzuli Ali (Managing Director)

Ownership

100% bumiputra — Asiapac Holdings

Market Share

21% of Malaysia's fishing & P&A market

Shariah

Compliant

Underwriter

TA Securities

Why This IPO Stands Out

+

21% market share in a niche nobody else does

+

Profit margins jumped from 43% to 56%

+

9-month profit already beat full-year FY2025

+

No insiders selling — all money goes to company

+

P&A work is mandatory — not optional spending

!

Heavily relies on PETRONAS Carigali for work

!

Small company — RM192.5M market cap only

!

Only operates in Malaysia — no overseas work

BUSINESS MODEL

3 Services They Sell

Fishing Services

Core Revenue Driver

When equipment gets stuck deep inside an oil well, they send specialised tools down to grab it and pull it out. This needs very high skill.

Plug & Abandonment

Mandatory by Law

When an oil well runs dry, the law says it must be sealed safely. They plug the well with cement and make sure nothing leaks.

Sidetracking

Growing Segment

When a well hits a dead end, they redirect the drilling sideways to reach untapped oil pockets without starting a new well.

KEY POINT

P&A (Plug & Abandonment) is required by law. Oil companies MUST do this work — it is not optional.

This gives United Asiapac a defensive, recurring source of demand even when oil prices drop.

HOW THEY WORK

The Call-Out Business Model

Oil companies call them when they have a problem. Each job is a separate purchase order — no long-term contracts.

Client Calls

Oil company has a

well problem

>

Deploy Team

Send tools + crew

from Kemaman/Labuan

>

Fix the Well

Fishing, P&A

or sidetracking

>

Get Paid

Per job billing —

equipment + manpower

Revenue Comes From

Equipment rental and tools — majority of revenue

Manpower and technical crew — growing contribution

Each job is custom — depends on the well problem

Why They Own Their Tools

They used to rent specialised tools from others.

Now they buy and own their own tools.

This is the #1 reason margins jumped from 43% to 56%.

FINANCIAL PERFORMANCE

The Numbers Are Getting Better Fast

FY2025 (Full Year)

9M FY2026

Change

Revenue

RM36.95M

RM39.0M

+5.5%

Gross Profit

RM14.5M

RM21.9M

+51%

GP Margin

43.66%

56.17%

+12.5pp

Net Profit

RM6.98M

RM11.3M

+62%

Net Margin

18.9%

29.16%

+10.3pp

9-MONTH PROFIT ALREADY BEAT THE FULL YEAR

The 9-month net profit of RM11.3M is already 62% higher than the entire FY2025 (RM6.98M). With 3 months still to go, this company is growing fast.

ORDER BOOK: RM27.3 million in outstanding purchase orders — projects to be completed by Feb 2027

THE MARGIN STORY

How Margins Jumped from 43% to 56%

BEFORE

43.7%

GP MARGIN (FY2025)

Rented tools from third parties.

High rental costs ate into profits.

Less control over equipment supply.

>

AFTER

56.2%

GP MARGIN (9M FY2026)

Now OWN their own tools.

No more rental costs eating profits.

Full control — deploy anytime.

WHY THIS MATTERS FOR THE IPO

RM23.26 million (48%) of IPO proceeds will be used to buy MORE tools and equipment.

This means margins could stay at 56%+ or even go higher after listing.

The company expects 20-30% more capacity from these new tools.

IPO STRUCTURE

Listing Details

IPO PRICE

RM0.35

TOTAL SHARES

550M

MARKET CAP

RM192.5M

TRAILING PE

27.6x

ANNUALISED PE

8.8x

NEW SHARES ISSUED

25.3%

No Offer-for-Sale

Existing shareholders are NOT selling any shares.

All RM48.73M goes straight into the company.

This is a positive sign — insiders believe in the business.

Two PE Numbers — Which One?

Trailing PE (27.6x) uses old FY2025 profit — looks expensive.

Annualised PE (8.8x) uses latest 9M profit — much cheaper.

The latest numbers are far stronger. Use 8.8x as your guide.

USE OF PROCEEDS

How They Will Spend RM48.73 Million

48%

Equipment

11%

Office

11%

Staff

10%

Listing

9%

Working Cap

Buy More Tools

RM23.26M (48%)

Buy well intervention tools to own — not rent.

This boosts capacity 20-30% and keeps margins high.

New Office + Staff

RM13.18M (27%)

New corporate office (RM5.5M), expand workforce

(RM5.3M), hire specialised engineers (RM2.4M).

Working Capital

RM4.54M (9%)

Day-to-day cash for buying materials, paying staff

and keeping projects running smoothly.

Repay Bank Loans

RM2.84M (6%)

Pay off existing bank borrowings. After this, the

company will have very little debt on the books.

INDUSTRY & MARKET

The P&A Market Is Booming

MARKET SIZE (2024)

RM165M

MARKET SIZE (2028)

RM444M

GROWTH RATE (CAGR)

28.1%

Why Demand Is Growing

Old wells must be plugged by law — it is not optional

Malaysia has many ageing offshore oil wells

PETRONAS spending more on well maintenance

New exploration creates more stuck equipment to fish out

Foreign companies are expensive — locals have an edge

Analyst Forecasts (MBSB Research)

FY2026 Forecast

Revenue: RM39.1M

Net Profit: RM11.3M

FY2027 Forecast

Revenue: RM44.7M

Net Profit: RM14.0M

Revenue growth: +14.3% | Profit growth: +23.9%

MBSB Fair Value: RM0.39 (+11.4% upside from RM0.35)

PEER COMPARISON

How United Asiapac Compares

Company

Board

PE Ratio

Market Cap

Focus

Deleum

Main

6.6x

RM454M

Power + well services

Uzma

Main

7.2x

RM252M

Integrated energy

Carimin

Main

9.0x

RM97M

Offshore maintenance

Sector Median

—

7.8-8.9x

—

—

United Asiapac

ACE

8.8x

RM192.5M

Well intervention

In Line With Peers

At 8.8x annualised PE, United Asiapac sits right in the middle of the peer range (6.6x to 9.0x).

Higher Margins

56% GP margin is much higher than most O&G service peers. The niche specialisation gives them pricing power.

Smallest of the Group

RM192.5M market cap is small. Deleum is 2.4x bigger. Smaller companies carry more risk but also more upside.

KEY RISKS

What Could Go Wrong

HIGH

Customer Concentration

Heavily dependent on PETRONAS Carigali for work. If PETRONAS cuts spending or picks another vendor, revenue drops sharply.

HIGH

No Long-Term Contracts

Every job is a one-off call-out purchase order. There are no guaranteed repeat orders or fixed annual deals.

MEDIUM

Oil Price Dependency

When oil prices drop, oil companies cut upstream spending. Fewer wells drilled means less fishing and P&A work.

MEDIUM

Small Company Risk

RM192.5M market cap on ACE Market. Small caps tend to have low trading volume and higher price swings.

MEDIUM

Malaysia Only

All operations in Malaysia only. No international diversification. Exposed to local regulatory and policy risks.

LOW

Trailing PE Looks High

27.6x trailing PE based on FY2025 data looks expensive. But annualised PE of 8.8x is much cheaper. Depends which number investors focus on.

KEY STRENGTHS

What Makes This IPO Attractive

Niche Market Leader

21% market share in fishing & P&A services. First Malaysian company to build real expertise in this space — used to be dominated by foreign firms.

Margins Are Surging

GP margin jumped from 43.7% to 56.2% by owning tools instead of renting. Net margin almost doubled from 18.9% to 29.2%.

Defensive Demand

P&A (well closure) is mandatory by law. Oil companies MUST do this work regardless of oil prices. This protects revenue in downturns.

Market Growing 28% per Year

Malaysia's fishing & P&A market: RM165M (2024) growing to RM444M by 2028. Strong structural tailwind for the business.

No Insiders Selling

100% public issue — no offer-for-sale. All RM48.73M goes to the company. Major shareholders keeping their full stake.

100% Bumiputra Advantage

Bumiputra-owned gives a natural edge for PETRONAS contracts. Strategic positioning in Malaysia's O&G ecosystem.

VALUATION SUMMARY

Is RM0.35 a Good Price?

MBSB FAIR VALUE

RM0.39

+11.4% UPSIDE

from IPO price of RM0.35

Valuation Checklist

Annualised PE 8.8x — in line with sector (7.8-8.9x)

GP margin 56% — highest among peers

MBSB target RM0.39 — 11.4% upside

No insiders selling — positive signal

Trailing PE 27.6x — looks expensive on old data

Short-term target RM0.41 (Azam Taifor) — 17% upside

The Key Question

Can the company maintain 56% gross margins after listing?

​

Management says yes — because the IPO proceeds will buy even more tools (RM23.26M), eliminating

rental costs permanently. If margins hold, the current price is fair to cheap.

VERDICT: SUBSCRIBE

WHY SUBSCRIBE

+ 21% market share in niche nobody else does

+ Margins jumped from 43% to 56% — and rising

+ 9-month profit already beat full-year FY2025

+ P&A demand is mandatory by law — defensive

+ Market growing at 28.1% CAGR to RM444M

+ No insiders selling — money goes to company

WHAT TO WATCH

- Heavily dependent on PETRONAS Carigali

- No long-term contracts — all one-off jobs

- Small company — RM192.5M market cap

- Malaysia only — no overseas diversification

- Oil price cycles can cut upstream spending

- Trailing PE of 27.6x scares some investors

BOTTOM LINE

A niche oil & gas specialist with the best margins in the sector (56% GP) and a market growing at 28% per year. At 8.8x annualised PE, it is priced in line with larger peers. The risks are real — customer concentration and small size — but the defensive nature of P&A work and the no-offer-for-sale structure make this a reasonable SUBSCRIBE for moderate-risk investors.

STRATUS GLOBAL

HOLDINGS BERHAD

Semiconductor Factory Automation | IPO Analysis

IPO PRICE

RM0.80

MARKET CAP

RM1.0B

PE RATIO

19.56x

P/B RATIO

2.0x

PROCEEDS

RM285M

VERDICT: BUY

Main Market | Bursa Malaysia | Prospectus 2 July 2026 | Bayan Lepas, Penang