PETALING JAYA: Integrated engineering solutions provider Oxford Innotech Bhd
is expected to see a rebound in earnings from financial year 2026 (FY26) onwards following a temporary slowdown in FY25 due to a high base effect from earlier project recognitions.
In a report, TA Research forecasts that the group’s earnings will register a 15.4% year-on-year (y-o-y) decline in core net profit to RM13.3mil in FY25.
This comes after a sharp jump in earnings in FY24, which saw its core profit surge 104.6% y-o-y to RM15.7mil on the back of higher modular building system orders.
However, earnings are expected to recover in FY26 and FY27, supported by its business expansion plan and a healthy industry outlook.
“We believe the group will recover in the subsequent years, with a projected earnings growth of 9.5% and 14.3% to RM14.6mil and RM16.7mil for FY26 and FY27, respectively,” said the research house.
Oxford Innotech is scheduled to list on the ACE Market of Bursa Malaysia on July 29, 2025.
Its initial public offering (IPO) comprises 143.46 million new shares with an offer for sale of 50 million shares at an issue price of 29 sen a piece.
Upon listing, the group is expected to be valued at a market capitalisation of RM205.9mil.
Expected to raise RM41.6mil from the IPO exercise, more than half of the proceeds will be allocated to the construction of a new factory at RM23.1mil.
The remainder of the proceeds will be put aside for the purchase or refinancing of new machinery, general working capital and estimated listing expenses of RM11.17mil, RM3.33mil and RM4mil, respectively.
Additionally, the group’s future plans include the expansion of its product offering and customer base, as well as the expansion of production capacity and capabilities.
The construction of phase 2 of its Factory 2 at Penang Science Park will add about 68,000 sq ft of manufacturing space for the group.
“Post-listing with the utilisation of IPO proceeds, the balance sheet is expected to improve from a net debt of RM16.9mil to a net cash position of RM16.8mil,” said TA Research.
Furthermore, Oxford Innotech currently does not have any formal dividend policy.
The research house assigned a target price-to-earnings multiple of 14 times to the group and arrived at a fair value of 29 sen per share, citing Oxford Innotech’s established track record, ability to offer a wide range of products and services, as well as its experienced team.
