Manforce Group Berhad
MFGROUP0450ShariahMITIListedM & A Securities Sdn Bhd · ACE Market · Listing 06 May 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.
Manforce is a fast-growing but thin-margin workforce services business making the LEAP-to-ACE step up. The top line is real — revenue compounded 47.1% a year to RM181.1m — and profitability is heading the right way, with PAT margin improving from 2.9% to 5.6% and gearing more than halving to 0.4x against a 2.4x current ratio. The headline 106.6% PAT CAGR should be read with care: it is measured off a RM2.39m FYE2023 base, and a 5.6% net margin means the model converts little of its scale to profit. The raise is constructive at 63.74% growth allocation — recruitment-quota expansion and IT systems — though listing expenses of 15.46% edge above the flag on a RM30.4m issue. At RM0.38 the shares are priced at 14.9x FYE2025 earnings and 2.2x pro forma book, undemanding for the growth but not for the margin. Principal risk is regulatory: the entire model rests on government-issued foreign worker quotas. The market's own read was cautious — a 2.07x public tranche and a below-IPO debut.
Strengths
- Revenue compounded 47.1% a year to RM181.1m and PAT 106.6% a year to RM10.19m. - Gross margin recovered to 16.2% and PAT margin improved every year to 5.6%. - Gearing fell from 0.8x to 0.4x while the current ratio rose from 1.8x to 2.4x. - 63.74% of gross proceeds fund recruitment-quota expansion and IT operational systems.
Weaknesses
- Margins are structurally thin: a 16.2% gross and 5.6% net margin leave little buffer. - The 106.6% PAT CAGR is measured off a RM2.39m FYE2023 base and overstates durable growth. - Listing expenses take 15.46% of gross proceeds, just above the 15% flag. - As a LEAP-to-ACE transfer, the group has a limited public trading record.
Opportunities
- Rising demand for managed foreign-worker accommodation supports the hostel and CLQ management segments. - The IT operational system and SmartApp can lift service margins on existing headcount. - Additional recruitment quotas would expand the managed-worker base that drives recurring fees.
Threats
- Foreign worker recruitment quotas are set by government policy and can be tightened without notice. - Labour-supply regulation and levy changes can compress an already thin margin. - Customer concentration in specific industries exposes revenue to their hiring cycles.
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 | RM38 | 48.31% | RM8 | RM4 | RM19 | RM9 |
| 300 | 2 | RM114 | 50.72% | RM23 | RM12 | RM57 | RM29 |
| 1,100 | 3 | RM418 | 53.14% | RM84 | RM44 | RM209 | RM111 |
| 2,100 | 4 | RM798 | 55.56% | RM160 | RM89 | RM399 | RM222 |
| 3,100 | 5 | RM1,178 | 57.97% | RM236 | RM137 | RM589 | RM341 |
| 4,100 | 6 | RM1,558 | 60.39% | RM312 | RM188 | RM779 | RM470 |
| 6,100 | 7 | RM2,318 | 62.80% | RM464 | RM291 | RM1,159 | RM728 |
| 11,100 | 8 | RM4,218 | 65.22% | RM844 | RM550 | RM2,109 | RM1,375 |
| 20,100 | 9 | RM7,638 | 67.63% | RM1,528 | RM1,033 | RM3,819 | RM2,583 |
| 50,100 | 10 | RM19,038 | 70.05% | RM3,808 | RM2,667 | RM9,519 | RM6,668 |
| 100,100 | 11 | RM38,038 | 72.46% | RM7,608 | RM5,513 | RM19,019 | RM13,782 |
| 200,100 | 12 | RM76,038 | 74.88% | RM15,208 | RM11,387 | RM38,019 | RM28,468 |
| 500,100 | 13 | RM190,038 | 77.29% | RM38,008 | RM29,378 | RM95,019 | RM73,445 |
| 1,000,100 | 14 | RM380,038 | 79.71% | RM76,008 | RM60,586 | RM190,019 | RM151,464 |
| 2,000,100 | 15 | RM760,038 | 82.13% | RM152,008 | RM124,837 | RM380,019 | RM312,093 |
| 5,000,100 | 16 | RM1,900,038 | 84.54% | RM380,008 | RM321,262 | RM950,019 | RM803,156 |
| 10,000,100 | 17 | RM3,800,038 | 86.96% | RM760,008 | RM660,876 | RM1,900,019 | RM1,652,190 |
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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