SLGC Berhad
SLG0476ShariahMITIListedM & A Securities Sdn Bhd · ACE Market · Listing 06 Oct 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.
SLGC offers earnings visibility that few ACE Market contractors can match — about RM1.0bn of unbilled work, three years of revenue at FY2025's run rate — at a modest 11.2 times FY2025 earnings, or about 8.7 times annualised 2026 earnings. What it does not yet offer is margin: GP margin has fallen in each period reported, from 17.5% to 13.8%, so revenue growth of 41% in FY2025 delivered lower profit. Only two audited years were reported in the coverage, so the growth figures here are single-year changes rather than a trend. RHB valued the shares at RM0.40 on an expected margin recovery from design-and-build and industrial jobs; TA Research set RM0.28, the offer price, which is a fair summary of the debate. The public portion was a lukewarm 3.06 times subscribed. Whether this is a cheap contractor or a value trap rests on whether the order book is converted at better margins than the last eighteen months.
Strengths
- Unbilled order book of about RM1.0bn, around 3.1 times FY2025 revenue. - CIDB G7 licence with no cap on contract value and a 17-year track record. - Design-and-build capability, which carries better margins than build-only work. - Repeat clients among listed developers and Daiwa House for its warehouse phases.
Weaknesses
- GP margin down from 17.51% to 15.67% in FY2025 and 13.77% in 1H2026. - PAT fell 12.7% in FY2025 despite 41.1% revenue growth. - Bank borrowings of RM70.3m against RM24.3m of equity at FY2025; a quarter of the proceeds repays debt. - Listing expenses take 15.7% of the proceeds, just over SST's 15% flag.
Opportunities
- Commercial and industrial jobs, at a 19.4% GP margin, are about 70% of the tender book. - Owning machinery rather than renting should lower costs and sharpen bids. - About 83% of the order book is due for recognition in FY2026-FY2027.
Threats
- Building material, fuel and labour cost inflation on fixed-price contracts. - Property-developer cash flow and payment risk. - Execution risk on a large order book relative to the group's size. - Litigation arising from legacy projects.
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 | RM28 | 32.68% | RM6 | RM2 | RM14 | RM5 |
| 300 | 2 | RM84 | 34.31% | RM17 | RM6 | RM42 | RM14 |
| 1,100 | 3 | RM308 | 35.95% | RM62 | RM22 | RM154 | RM55 |
| 2,100 | 4 | RM588 | 37.58% | RM118 | RM44 | RM294 | RM110 |
| 3,100 | 5 | RM868 | 39.22% | RM174 | RM68 | RM434 | RM170 |
| 4,100 | 6 | RM1,148 | 40.85% | RM230 | RM94 | RM574 | RM234 |
| 6,100 | 7 | RM1,708 | 42.48% | RM342 | RM145 | RM854 | RM363 |
| 11,100 | 8 | RM3,108 | 44.12% | RM622 | RM274 | RM1,554 | RM686 |
| 20,100 | 9 | RM5,628 | 45.75% | RM1,126 | RM515 | RM2,814 | RM1,287 |
| 50,100 | 10 | RM14,028 | 47.39% | RM2,806 | RM1,329 | RM7,014 | RM3,324 |
| 100,100 | 11 | RM28,028 | 49.02% | RM5,606 | RM2,748 | RM14,014 | RM6,870 |
| 200,100 | 12 | RM56,028 | 50.65% | RM11,206 | RM5,676 | RM28,014 | RM14,190 |
| 500,100 | 13 | RM140,028 | 52.29% | RM28,006 | RM14,643 | RM70,014 | RM36,609 |
| 1,000,100 | 14 | RM280,028 | 53.92% | RM56,006 | RM30,199 | RM140,014 | RM75,498 |
| 2,000,100 | 15 | RM560,028 | 55.56% | RM112,006 | RM62,225 | RM280,014 | RM155,563 |
| 5,000,100 | 16 | RM1,400,028 | 57.19% | RM280,006 | RM160,134 | RM700,014 | RM400,335 |
| 10,000,100 | 17 | RM2,800,028 | 58.82% | RM560,006 | RM329,415 | RM1,400,014 | RM823,538 |
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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