HSS Holdings Berhad
HSSBAKERY0460ShariahMITIListedM & A Securities Sdn Bhd · ACE Market · Listing 23 Jun 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.
HSS Holdings presents an unusual combination: falling revenue and rising profit. Sales dropped 9.9% in FYE2025 to RM144.4m while PAT rose to RM8.59m, extending a two-year run of margin-led earnings growth that compounds at 25.3% a year. That is real operating improvement, but it is not the same as demand growth, and the durability is unproven. The balance sheet is the dominant risk: gearing of 1.1x is the highest across both batches, the current ratio has only just cleared 1.0x, and payables have stretched to 114 days. Use of proceeds acknowledges this - 33.4% repays borrowings - but that leaves only 19.0% for the two manufacturing facilities, the lowest growth allocation of any company here apart from ENEST, while listing expenses take a further 25.9%. At 10.5x earnings and 2.0x pro forma book the multiple is modest, which is appropriate compensation for the leverage. Principal risk is that the margin gains reverse before the balance sheet is fully repaired.
Strengths
- PAT rose two years running, from RM5.46m to RM8.59m, a 25.3% annual compound rate. - Gross margin expanded from 15.6% to 18.8% across the window. - Gearing more than halved from 3.2x to 1.1x before the IPO proceeds are applied. - Current ratio recovered above 1.0x for the first time in the review period.
Weaknesses
- Revenue fell 9.9% in FYE2025, so profit growth came from margin, not demand. - Gearing of 1.1x remains the highest in either batch. - Liquidity is thin at 1.2x, having been below 1.0x in two of three years. - Listing expenses take 25.9% of gross proceeds, more than the combined capital expenditure.
Opportunities
- RM4.5m of debt repayment materially reduces an interest burden that has suppressed net margin. - Capacity upgrades at both manufacturing facilities support higher-margin product mix. - Shariah-compliant status keeps the full domestic institutional bid available.
Threats
- Commodity flour, sugar and palm oil costs drive the cost base and move independently of selling prices. - Extended payables at 114 days indicate reliance on supplier credit that could tighten. - Private-label and imported biscuit competition constrains pricing power.
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 | RM18 | 9.47% | RM4 | RM0 | RM9 | RM1 |
| 300 | 2 | RM54 | 9.94% | RM11 | RM1 | RM27 | RM3 |
| 1,100 | 3 | RM198 | 10.42% | RM40 | RM4 | RM99 | RM10 |
| 2,100 | 4 | RM378 | 10.89% | RM76 | RM8 | RM189 | RM21 |
| 3,100 | 5 | RM558 | 11.36% | RM112 | RM13 | RM279 | RM32 |
| 4,100 | 6 | RM738 | 11.84% | RM148 | RM17 | RM369 | RM44 |
| 6,100 | 7 | RM1,098 | 12.31% | RM220 | RM27 | RM549 | RM68 |
| 11,100 | 8 | RM1,998 | 12.78% | RM400 | RM51 | RM999 | RM128 |
| 20,100 | 9 | RM3,618 | 13.26% | RM724 | RM96 | RM1,809 | RM240 |
| 50,100 | 10 | RM9,018 | 13.73% | RM1,804 | RM248 | RM4,509 | RM619 |
| 100,100 | 11 | RM18,018 | 14.20% | RM3,604 | RM512 | RM9,009 | RM1,280 |
| 200,100 | 12 | RM36,018 | 14.68% | RM7,204 | RM1,057 | RM18,009 | RM2,643 |
| 500,100 | 13 | RM90,018 | 15.15% | RM18,004 | RM2,728 | RM45,009 | RM6,820 |
| 1,000,100 | 14 | RM180,018 | 15.62% | RM36,004 | RM5,626 | RM90,009 | RM14,064 |
| 2,000,100 | 15 | RM360,018 | 16.10% | RM72,004 | RM11,591 | RM180,009 | RM28,979 |
| 5,000,100 | 16 | RM900,018 | 16.57% | RM180,004 | RM29,830 | RM450,009 | RM74,575 |
| 10,000,100 | 17 | RM1,800,018 | 17.05% | RM360,004 | RM61,364 | RM900,009 | RM153,411 |
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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