Future Plans for Growth:

  • Integrated Headquarters and Production Facility.

The Group plans to establish a new integrated corporate office and production facility in Selangor, consolidating operations currently spread across Bandar Baru Bangi, Puchong, Kajang, and Kuchai Lama. The new facility will centralise functions, streamline workflows, and enhance operational efficiency. The initiative includes acquisition of machinery from local vendors to support the expanded production footprint.

  • Regional Expansion through New Branches.

To bolster regional presence, the Group aims to expand its Penang branch and open a new branch in Johor. These expansions will improve responsiveness to commercial, industrial, and residential clients in northern and southern Peninsular Malaysia, while enhancing visibility and accessibility for its interior fit-out solutions.

  • Scaling Market Share via Larger Projects.

The Group targets higher-value interior fitting-out projects to grow its market share and ensure business sustainability. For FYE 2023, it secured 79 projects worth RM329.4 million and maintains an ongoing order book of RM663.4 million across 57 projects as at LPD.

  • Strategic Investments and M&A.

The Group is exploring upstream diversification through synergistic acquisitions, particularly in stone and steel fabrication to complement its core fit-out operations. While no deals have been finalised as at LPD, the Group remains focused on enhancing its value chain through strategic partnerships.

M+ Fair Value

We assign a fair value of RM0.88 per share for SAG, implying a 41.9% upside from its IPO price of RM0.62. This valuation is based on a P/E multiple of 18.0x, pegged to the mid-FY26F EPS of 4.88 sen. We believe the ascribed P/E is justified, as the average and forward P/E ratios within the Bloomberg GICS Construction & Engineering index range between 17.9x-23.1x.