Eckem Holdings Berhad
ECKEM0463MITIListedM & A Securities Sdn Bhd · ACE Market · Listing 03 Jul 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.
Eckem comes to market on a deteriorating trend. Revenue fell 12.0% in FYE2025 to RM38.7m, below where it stood in FYE2022, and PAT has declined for two consecutive years to RM4.5m as gross margin slipped from 32.4% to 27.8%. Earnings quality is the weakest part of the case: this is a distribution business being squeezed between input costs and contracted selling prices. Growth is negative on both revenue and profit over the stored window, so the equity story depends wholly on what the proceeds build. On that count the raise is credible - 53.3% funds a consolidated office, warehouse and laboratory plus a new rubber production line - but the payoff sits 24 to 36 months out. The balance sheet is mixed: liquidity is comfortable at 3.25x, yet 0.98x gearing is the highest in the batch and only RM1.45m of proceeds reduces it. At about 17x trailing earnings the multiple is being paid on the lowest profit in four years, which is a demanding entry point, and non-Shariah status thins the institutional bid. Principal risk is that margin compression continues through the build-out period.
Strengths
- Broad portfolio of 310 specialty chemical products across coatings, personal care and automotive end markets. - Current ratio strengthened from 2.03x to 3.25x over the review period. - Cash and bank balances grew every year, reaching RM8.2m in FYE2025. - 53.3% of proceeds fund new premises and a new rubber production line.
Weaknesses
- PAT fell for two consecutive years, from RM6.86m to RM4.48m. - Revenue declined 12.0% in FYE2025 to RM38.7m, below the FYE2022 level. - Gross margin dropped from 32.4% to 27.8% and has not recovered. - Gearing of 0.98x is the highest in the batch. - Listing expenses absorb 25.33% of gross proceeds.
Opportunities
- Consolidating operations into purpose-built premises should reduce the cost of running three separate sites. - The new rubber production line diversifies away from pure chemical distribution into manufacturing. - Customer concentration in Kuala Lumpur and Selangor suits the planned central-region facility.
Threats
- Specialty chemical distribution margins compress when upstream resin and pigment prices move against contracted selling prices. - Downstream coatings and automotive demand tracks the domestic construction and vehicle cycles. - Non-Shariah classification limits access to a large part of the Malaysian institutional bid.
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 | RM12 | 12.36% | RM2 | RM0 | RM6 | RM1 |
| 300 | 2 | RM36 | 12.98% | RM7 | RM1 | RM18 | RM2 |
| 1,100 | 3 | RM132 | 13.60% | RM26 | RM4 | RM66 | RM9 |
| 2,100 | 4 | RM252 | 14.22% | RM50 | RM7 | RM126 | RM18 |
| 3,100 | 5 | RM372 | 14.83% | RM74 | RM11 | RM186 | RM28 |
| 4,100 | 6 | RM492 | 15.45% | RM98 | RM15 | RM246 | RM38 |
| 6,100 | 7 | RM732 | 16.07% | RM146 | RM24 | RM366 | RM59 |
| 11,100 | 8 | RM1,332 | 16.69% | RM266 | RM44 | RM666 | RM111 |
| 20,100 | 9 | RM2,412 | 17.31% | RM482 | RM83 | RM1,206 | RM209 |
| 50,100 | 10 | RM6,012 | 17.92% | RM1,202 | RM216 | RM3,006 | RM539 |
| 100,100 | 11 | RM12,012 | 18.54% | RM2,402 | RM445 | RM6,006 | RM1,114 |
| 200,100 | 12 | RM24,012 | 19.16% | RM4,802 | RM920 | RM12,006 | RM2,300 |
| 500,100 | 13 | RM60,012 | 19.78% | RM12,002 | RM2,374 | RM30,006 | RM5,934 |
| 1,000,100 | 14 | RM120,012 | 20.40% | RM24,002 | RM4,895 | RM60,006 | RM12,239 |
| 2,000,100 | 15 | RM240,012 | 21.01% | RM48,002 | RM10,087 | RM120,006 | RM25,218 |
| 5,000,100 | 16 | RM600,012 | 21.63% | RM120,002 | RM25,958 | RM300,006 | RM64,896 |
| 10,000,100 | 17 | RM1,200,012 | 22.25% | RM240,002 | RM53,400 | RM600,006 | RM133,499 |
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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