Sum Technology Berhad
SUM0459ShariahMITIListedMalacca Securities Sdn Bhd · ACE Market · Listing 18 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.
Sum Technology has improved profitability dramatically while its revenue base shrank. Gross margin nearly doubled from 12.6% to 23.8% and PAT rose every year, which suggests genuine selectivity in the projects taken. But revenue compounds at negative 13.9% over the window and remains a quarter below FYE2023, and a business that swung from RM88.6m to RM51.4m to RM65.7m in three years has no reliable run rate. Earnings quality is good; earnings predictability is poor. The balance sheet is sound at 2.15x current ratio, though gearing nearly doubled to 0.67x in FYE2025. The use of proceeds is honest about the business model - 54.7% to working capital reflects a cash cycle where projects must be funded before they pay - but it means only a third of the raise builds capacity. Valuation is the hardest part: 20.8x is the richest multiple across both batches, applied to earnings from a shrunken revenue base. Principal risk is project concentration. The 110.54x subscription makes allocation the constraint; the multiple leaves little margin for a project slipping.
Strengths
- Gross margin expanded from 12.6% to 23.8%, a near doubling in two years. - PAT grew in each year of the window despite a 42% revenue collapse in FYE2024. - Current ratio of 2.15x with RM49.9m of current assets. - Turnkey cleanroom capability serves semiconductor and medical facilities with high specification barriers.
Weaknesses
- Revenue is 25.9% below the FYE2023 level and compounds at negative 13.9% a year over the window. - Extreme project lumpiness: revenue moved from RM88.6m to RM51.4m to RM65.7m in three years. - 20.8x IPO PER is the highest multiple across both batches. - Only 33.4% of proceeds fund growth; 54.7% is working capital.
Opportunities
- The Philippines office extends a proven delivery model into a second ASEAN market. - Regional semiconductor and data-centre construction drives cleanroom and MEPF demand. - Design and development spend supports a shift from contracting toward proprietary solutions.
Threats
- Order intake depends on a small number of large capital projects that can slip or cancel. - Fixed-price turnkey contracts expose margin to materials and labour cost movements. - Working-capital intensity means growth consumes cash before it generates it.
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 | 0.90% | RM6 | RM0 | RM14 | RM0 |
| 300 | 2 | RM84 | 0.95% | RM17 | RM0 | RM42 | RM0 |
| 1,100 | 3 | RM308 | 1.00% | RM62 | RM1 | RM154 | RM2 |
| 2,100 | 4 | RM588 | 1.04% | RM118 | RM1 | RM294 | RM3 |
| 3,100 | 5 | RM868 | 1.09% | RM174 | RM2 | RM434 | RM5 |
| 4,100 | 6 | RM1,148 | 1.13% | RM230 | RM3 | RM574 | RM6 |
| 6,100 | 7 | RM1,708 | 1.18% | RM342 | RM4 | RM854 | RM10 |
| 11,100 | 8 | RM3,108 | 1.22% | RM622 | RM8 | RM1,554 | RM19 |
| 20,100 | 9 | RM5,628 | 1.27% | RM1,126 | RM14 | RM2,814 | RM36 |
| 50,100 | 10 | RM14,028 | 1.31% | RM2,806 | RM37 | RM7,014 | RM92 |
| 100,100 | 11 | RM28,028 | 1.36% | RM5,606 | RM76 | RM14,014 | RM190 |
| 200,100 | 12 | RM56,028 | 1.40% | RM11,206 | RM157 | RM28,014 | RM393 |
| 500,100 | 13 | RM140,028 | 1.45% | RM28,006 | RM405 | RM70,014 | RM1,013 |
| 1,000,100 | 14 | RM280,028 | 1.49% | RM56,006 | RM836 | RM140,014 | RM2,090 |
| 2,000,100 | 15 | RM560,028 | 1.54% | RM112,006 | RM1,723 | RM280,014 | RM4,306 |
| 5,000,100 | 16 | RM1,400,028 | 1.58% | RM280,006 | RM4,433 | RM700,014 | RM11,082 |
| 10,000,100 | 17 | RM2,800,028 | 1.63% | RM560,006 | RM9,119 | RM1,400,014 | RM22,797 |
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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