Liftech Group Berhad
LIFTECH0462ShariahMITIListedM & A Securities Sdn Bhd · ACE Market · Listing 30 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.
Liftech is the most conservative proposition in this batch and the least growth-driven. Earnings quality is good and improving: gross margin has risen three years running to 41.2% and PAT reached a three-year high of RM6.9m, which is genuine operating discipline in a fabrication business. The problem is the top line - revenue rose 0.4% in FYE2025 and compounded only 8.6% a year, so profit growth has come from margin rather than volume, and that lever has limits. The balance sheet is the point of the exercise: 59.8% of proceeds repay the borrowings raised to acquire the Penang and Sabah facilities, taking pro forma gearing from 0.47x to 0.09x. That is a real improvement, but it means only 11.9% of the raise funds new capacity, so investors are buying a cleaner balance sheet rather than an expansion. At 13.2x FYE2025 earnings and 1.5x pro forma book the pricing is the most reasonable in the batch on an asset basis. Principal risk is cyclicality: two new facilities add fixed overhead that flat revenue must carry through the next construction downturn. The setup suits a medium-term holding better than a listing trade.
Strengths
- Gross margin improved every year of the review period, from 38.8% to 41.2%. - PAT recovered to a three-year high of RM6.9m in FYE2025. - Current ratio of 2.2x and the second-lowest pro forma leverage in the batch after deleveraging. - Facilities in Penang and Sabah already acquired and owned, extending reach beyond the Klang Valley.
Weaknesses
- Revenue grew just 0.4% in FYE2025 and compounded only 8.6% a year over the window. - Only 11.9% of proceeds fund new capacity; the raise is overwhelmingly a debt paydown. - Gearing more than doubled to 0.5x in FYE2025 ahead of the listing. - Disclosed gearing excludes workshop and hostel lease liabilities.
Opportunities
- Repaying RM13.75m of borrowings takes pro forma gearing to 0.09x, freeing capacity for new work. - The Bukit Minyak and Kota Kinabalu sites open the northern and East Malaysian markets. - Customised lifting equipment carries higher margins than commodity crane supply.
Threats
- Steel foundry and construction capex cycles drive order intake and can pause sharply. - Fixed-price fabrication contracts expose margins to steel input cost movements. - Two new facilities add fixed overhead that flat revenue must absorb.
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 | RM29 | 5.29% | RM6 | RM0 | RM14 | RM1 |
| 300 | 2 | RM87 | 5.55% | RM17 | RM1 | RM44 | RM2 |
| 1,100 | 3 | RM319 | 5.81% | RM64 | RM4 | RM160 | RM9 |
| 2,100 | 4 | RM609 | 6.08% | RM122 | RM7 | RM305 | RM19 |
| 3,100 | 5 | RM899 | 6.34% | RM180 | RM11 | RM449 | RM29 |
| 4,100 | 6 | RM1,189 | 6.61% | RM238 | RM16 | RM595 | RM39 |
| 6,100 | 7 | RM1,769 | 6.87% | RM354 | RM24 | RM884 | RM61 |
| 11,100 | 8 | RM3,219 | 7.14% | RM644 | RM46 | RM1,610 | RM115 |
| 20,100 | 9 | RM5,829 | 7.40% | RM1,166 | RM86 | RM2,915 | RM216 |
| 50,100 | 10 | RM14,529 | 7.66% | RM2,906 | RM223 | RM7,264 | RM557 |
| 100,100 | 11 | RM29,029 | 7.93% | RM5,806 | RM460 | RM14,514 | RM1,151 |
| 200,100 | 12 | RM58,029 | 8.19% | RM11,606 | RM951 | RM29,014 | RM2,377 |
| 500,100 | 13 | RM145,029 | 8.46% | RM29,006 | RM2,453 | RM72,515 | RM6,132 |
| 1,000,100 | 14 | RM290,029 | 8.72% | RM58,006 | RM5,059 | RM145,015 | RM12,647 |
| 2,000,100 | 15 | RM580,029 | 8.99% | RM116,006 | RM10,423 | RM290,015 | RM26,058 |
| 5,000,100 | 16 | RM1,450,029 | 9.25% | RM290,006 | RM26,824 | RM725,015 | RM67,060 |
| 10,000,100 | 17 | RM2,900,029 | 9.51% | RM580,006 | RM55,180 | RM1,450,015 | RM137,951 |
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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