Future Plans for Growth:

  • Continued expansion within the civil engineering and special trade work market

The Company intends to expand its presence in the local civil engineering and special trade work market, focusing on large-scale projects in residential, commercial, and industrial property development, highways, and utilities, while also capitalizing on the National Energy Transition for solar infrastructure work; aims to participate in tenders valued at more than RM100.0m.

  • Enhancing internal capabilities

The Company intends to allocate RM7.6m in the pursuant of proceeds, acquiring additional construction machinery and commercial vehicles to support its future expansion in earthworks and road construction. The intended purchases will include (i) 5 large excavators (RM3.8m), (ii) 1 mobile crane (RM0.6m), and (iii) 10 dump trucks (RM3.2m).

  • Pursuing the ISO 14001 certification

The Company intends to establish an environmental management system aligned with international standards by pursuing ISO 14001 certification, ensuring compliance with environmental laws, promoting good governance, and improving waste management on project sites. By this, the Company plans to engage an external consultant, at an estimated cost of RM30K, which will be funded internally.

M+ Fair value

We assign a fair value of RM0.37 per share for DENGKIL, representing a 48.0% upside from the IPO price of RM0.25. This valuation is based on a P/E ratio of 14x, pegged to the FY26f EPS of 2.67 sen. While this multiple is lower than the forward and historical P/E range of 15.5x to 20.7x for its closest peers, the discount reflects DENGKIL’s smaller market capitalization.