Future Plans for Growth:

  • Acquisition of Puncak Alam Factory

The Company plans to allocate approximately RM18.9 million from the IPO proceeds to acquire the Puncak Alam Factory, which the Company has been renting since 2011 at RM720,000 per annum. The factory is being purchased at a premium of 18.0% (Purchase price: RM19.5 million, Market value: RM16.53 million). The Company justifies the premium valuation as it would avoid relocation and restoration costs. Currently, the Company has deposited approximately RM600,000, with the remaining balance expected to be settled by August 2025.

  • Purchase and Installation of Production Facilities and Solar PV

Following the acquisition of the Puncak Alam Factory, the Company intends to install a 374.00 kWp Solar PV system, with installation expected to commence in the second quarter of 2025 and be completed by the first quarter of 2026. The cost is estimated at RM1.50 million, which will be funded through IPO proceeds. This installation is expected to generate approximately 34.0% in utility cost savings, translating to approximately RM318,000 annually over a period of 10 years.

  • Purchase and Installation of IT Infrastructure for the New Puncak Alam Corporate Office

The Group intends to allocate approximately RM580,000 from the IPO proceeds to install IT infrastructure, including:
(i) an audio-visual system,
(ii) a public address system,
(iii) a private automatic system,
(iv) a private automatic branch exchange system, and
(v) an information and communication system.

  • Acquisition of New Puncak Alam Warehouse and Corporate Office in Selangor

Finished goods manufactured at the Puncak Alam Factory will be transported to the new warehouse for temporary storage before delivery to customers. This new space is expected to accommodate future inventory needs, supporting the Company’s business expansion plans.

  • Establishment of a New R&D Laboratory at the New Puncak Alam Corporate Office

The Company plans to establish a new R&D laboratory to stay updated with the latest industry developments, support its marketing strategies, improve cost efficiency, and enhance quality control of its products.

M+ Fair Value

We ascribe a fair value of RM0.30 for SUMI. Our valuation is derived by pegging a forward P/E of 14.0x to the mid-FY26f EPS of 2.16 cents, implying a 25.0% upside to its IPO price of RM0.24. While the pegged P/E represents a c.20% discount to the Industrial Products & Services Index average P/E of 18.0x, we believe this fairly reflects the Company’s smaller market capitalization.