5E Resources Holdings Berhad
5ERES0397ShariahMITIListedTA Securities Holdings Berhad · ACE Market · Listing 15 Apr 2026
Auto Summary
Revenue
PAT
Margins & Gearing
Utilisation Of Proceeds
Valuation Breakdown
Category Scores
Growth Vs Risk Matrix
Growth increases upward and risk decreases to the right, so the most attractive IPOs sit in the top-right quadrant.
5E Resources is a high-margin environmental-services business bought just as its growth stalled. The economics are genuinely good: gross margin above 45% every year, PAT margin above 27%, near-zero 0.02x gearing and a 22.1% ROE — the profile of a licensed, capacity-constrained scheduled-waste handler. But the recent trajectory is flat: revenue plateaued at RM80m and PAT slipped from a RM23.8m FYE2023 peak to RM21.8m in FYE2024. That is precisely why the raise matters — 73.26% funds a new Perak facility and its machinery, roughly doubling processing capacity — and precisely why patience is required, because that capacity will not contribute for up to three years. Concentration compounds the wait: scheduled waste management is over 70% of revenue. At RM0.26 the shares are 18.4x trailing earnings and 1.86x pro forma book, a full multiple for a business whose next leg of growth is a construction project rather than current momentum. The 7.04x subscription and a single-digit debut premium read as measured. Principal risk is execution and timing on the New Perak Facility, on which the entire growth case depends.
Strengths
- Gross margin held above 45% throughout and PAT margin above 27%. - Near debt-free: gearing of 0.02x-0.04x across the review period, with a healthy current ratio. - 73.26% of proceeds fund the New Perak Facility and its machinery — a clear capacity plan. - ROE of 22.1% on FYE2024 equity of RM98.7m.
Weaknesses
- Revenue plateaued and PAT fell from the FYE2023 peak, so recent momentum has stalled. - Scheduled waste management is over 70% of revenue, a concentration risk. - The growth depends on a facility that will not contribute for up to three years. - Re-listing after an SGX exit gives a discontinuous public track record.
Opportunities
- The New Perak Facility roughly doubles built-up capacity for scheduled-waste processing. - Tightening environmental regulation supports demand for licensed scheduled-waste handlers. - Recovered and recycled material supply diversifies revenue beyond waste treatment.
Threats
- Scheduled-waste volumes track industrial activity and can soften in a downturn. - Licensing and environmental compliance costs can rise with regulation. - Commissioning delays or cost overruns on the New Perak Facility would defer the growth.
IPO Balloting Calculator
Tier snapping, subscription cost, and expected-value estimate.
| Units | Tier | Cost | Success | Open Profit | Open EV | Hold Profit | Hold EV |
|---|---|---|---|---|---|---|---|
| 100 | 1 | RM26 | 14.20% | RM5 | RM1 | RM13 | RM2 |
| 300 | 2 | RM78 | 14.91% | RM16 | RM2 | RM39 | RM6 |
| 1,100 | 3 | RM286 | 15.63% | RM57 | RM9 | RM143 | RM22 |
| 2,100 | 4 | RM546 | 16.34% | RM109 | RM18 | RM273 | RM45 |
| 3,100 | 5 | RM806 | 17.05% | RM161 | RM27 | RM403 | RM69 |
| 4,100 | 6 | RM1,066 | 17.76% | RM213 | RM38 | RM533 | RM95 |
| 6,100 | 7 | RM1,586 | 18.47% | RM317 | RM59 | RM793 | RM146 |
| 11,100 | 8 | RM2,886 | 19.18% | RM577 | RM111 | RM1,443 | RM277 |
| 20,100 | 9 | RM5,226 | 19.89% | RM1,045 | RM208 | RM2,613 | RM520 |
| 50,100 | 10 | RM13,026 | 20.60% | RM2,605 | RM537 | RM6,513 | RM1,341 |
| 100,100 | 11 | RM26,026 | 21.31% | RM5,205 | RM1,109 | RM13,013 | RM2,773 |
| 200,100 | 12 | RM52,026 | 22.02% | RM10,405 | RM2,291 | RM26,013 | RM5,727 |
| 500,100 | 13 | RM130,026 | 22.73% | RM26,005 | RM5,910 | RM65,013 | RM14,776 |
| 1,000,100 | 14 | RM260,026 | 23.44% | RM52,005 | RM12,189 | RM130,013 | RM30,472 |
| 2,000,100 | 15 | RM520,026 | 24.15% | RM104,005 | RM25,115 | RM260,013 | RM62,787 |
| 5,000,100 | 16 | RM1,300,026 | 24.86% | RM260,005 | RM64,632 | RM650,013 | RM161,580 |
| 10,000,100 | 17 | RM2,600,026 | 25.57% | RM520,005 | RM132,956 | RM1,300,013 | RM332,390 |
The trailing 100 units are intentional: applying just over a boundary, such as 20,100 instead of 20,000, lands in the next balloting tier. Success rate is a heuristic, not published balloting odds.
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