Future Plans for Growth:

  • Enhancing production capabilities.

The group plans to allocate RM3.0 million (20.6% of IPO proceeds) for the purchase of new machinery and equipment. This investment will enhance production capacity and improve operational efficiency, enabling the group to better meet increasing demand and broaden its manufacturing capabilities.

  • Expansion of manufacturing facilities.

To support future growth, RM2.0 million (13.8% of IPO proceeds) will be allocated for the construction of a new factory. The additional space will allow for greater production output and the ability to scale operations in line with market expansion.

  • Upgrading corporate infrastructure.

The group intends to allocate RM1.5 million (10.3% of IPO proceeds) for the renovation of a new office. This renovation will provide a more efficient and conducive working environment, supporting the group’s expanding workforce and operational needs.

M+ Fair Value

We ascribe a fair value of RM0.70 for FIBROMAT, based on a 15.0x forward P/E to mid-FY26f EPS of 4.64 sen, implying 27.3% upside to its IPO price. Despite a 71.3-108.7% discount to peer averages, we believe this is justified as Bloomberg’s Construction and Engineering sector P/E (15.9-20.2x) is a more appropriate benchmark.