Enest Group Berhad
ENEST0467ShariahMITIListedM & A Securities Sdn Bhd · ACE Market · Listing 15 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.
Enest is the cheapest listing in this batch and the least ambitious with its money. Revenue compounded 14.7% a year to RM158.4m, but earnings quality is deteriorating underneath: gross margin fell to 10.7%, PAT margin is 5.1%, and FYE2025 profit attributable was flat against FYE2024 despite higher sales. That pattern points to price competition into China rather than operating leverage. The balance sheet is sound - 3.4x current ratio, 0.5x gearing - and RM5.0m of proceeds will take gearing lower still. The use of proceeds is the central weakness: at 0% growth allocation this raise funds working capital, debt repayment and listing costs only, so the equity story depends entirely on the separately-funded Kajang bottling plan rather than anything the IPO pays for. At 9.4x earnings and 1.3x book that low ambition is at least priced in. Principal risk is single-market concentration in China. The 1.94x subscription leaves little scope for a listing pop; on a one-to-three-year view the case rests on downstream margin recovery that this IPO does not finance.
Strengths
- Revenue grew 31.6% over two years to RM158.4m without a loss-making year. - GACC registration permits direct export to China, a licence few Malaysian processors hold. - Current ratio of 3.4x and a four-year record of positive operating profit. - The lowest IPO multiple in the batch at 9.4x FYE2025 earnings and 1.3x book.
Weaknesses
- Gross margin compressed from 12.4% to 10.7% while revenue grew, and PAT margin is only 5.1%. - PAT attributable was flat year-on-year in FYE2025 at RM8.0m despite 8.3% revenue growth. - Zero growth allocation: no proceeds fund new capacity or new markets. - Gearing rose from 0.2x to 0.5x over the review period.
Opportunities
- The planned Kajang bottling line would move the group downstream into higher-margin finished products. - Direct raw bird's nest export to China leverages an existing network of registered swiftlet houses. - Domestic sales grew from a small base and diversify away from China concentration.
Threats
- Chinese import policy or GACC registration changes could close the principal market. - Price competition among Malaysian exporters into China is already visible in the margin trend. - Raw bird's nest supply and pricing depend on a fragmented network of independent farmers.
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 | RM13 | 51.55% | RM3 | RM1 | RM7 | RM3 |
| 300 | 2 | RM39 | 54.12% | RM8 | RM4 | RM20 | RM11 |
| 1,100 | 3 | RM143 | 56.70% | RM29 | RM16 | RM72 | RM41 |
| 2,100 | 4 | RM273 | 59.28% | RM55 | RM32 | RM137 | RM81 |
| 3,100 | 5 | RM403 | 61.86% | RM81 | RM50 | RM202 | RM125 |
| 4,100 | 6 | RM533 | 64.43% | RM107 | RM69 | RM267 | RM172 |
| 6,100 | 7 | RM793 | 67.01% | RM159 | RM106 | RM397 | RM266 |
| 11,100 | 8 | RM1,443 | 69.59% | RM289 | RM201 | RM722 | RM502 |
| 20,100 | 9 | RM2,613 | 72.16% | RM523 | RM377 | RM1,307 | RM943 |
| 50,100 | 10 | RM6,513 | 74.74% | RM1,303 | RM974 | RM3,257 | RM2,434 |
| 100,100 | 11 | RM13,013 | 77.32% | RM2,603 | RM2,012 | RM6,507 | RM5,031 |
| 200,100 | 12 | RM26,013 | 79.90% | RM5,203 | RM4,157 | RM13,007 | RM10,392 |
| 500,100 | 13 | RM65,013 | 82.47% | RM13,003 | RM10,724 | RM32,507 | RM26,809 |
| 1,000,100 | 14 | RM130,013 | 85.05% | RM26,003 | RM22,116 | RM65,007 | RM55,289 |
| 2,000,100 | 15 | RM260,013 | 87.63% | RM52,003 | RM45,569 | RM130,007 | RM113,923 |
| 5,000,100 | 16 | RM650,013 | 90.21% | RM130,003 | RM117,270 | RM325,007 | RM293,176 |
| 10,000,100 | 17 | RM1,300,013 | 92.78% | RM260,003 | RM241,240 | RM650,007 | RM603,099 |
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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