PETALING JAYA: Manforce Group Bhd
’s core earnings could potentially decline in financial year 2026 (FY26) and recover over FY27-FY28, led by the removal of foreign worker quota applications.
TA Research said the group is expected to record earnings growth of minus 4.4%, 15%, and 15%, translating into earnings of RM9.6mil, RM11mil, and RM12.7mil for FY26, FY27, and FY28, respectively.
Its earnings projections are based on revenue growth of minus 2%, 15%, and 15%, and core profit margins of 5.4% across FY26-FY28, respectively.
Manforce is the provider of end-to-end workforce solutions, specialising in the recruitment, placement, and management of both foreign and local workers.
It is raising RM30mil in gross proceeds, and its listing on the ACE Market of Bursa Malaysia is slated for May 6, 2026.
Given the lack of direct Bursa Malaysia comparables, TA Research has benchmarked the group against selected regional peers in Singapore and Japan.
It values the group at 12 times 2027 core earnings per share (EPS), which implies a fair value of 38 sen per share.
At the initial public offering (IPO) price of 38 sen per share, the stock trades at 15.1 times FY25 EPS.
The research house’s fair value of 38 sen a share, similar to its IPO price, leaves no potential upside for investors.
The expected earnings decline in FY26 follows the government’s halt on new foreign worker arrivals from May 31, 2024, which has limited the group’s ability to grow its managed headcount and recognise new levy-related revenue.
However, TA Research expects a recovery over the FY27-FY28 period, supported by the government’s removal of foreign worker quota application deadlines in March 2026.
On a pro-forma basis, following the listing and use of IPO proceeds, the group’s net cash position is expected to increase from RM3.5mil to RM24.6mil.
As part of its expansion, the group plans to recruit an additional 6,000 foreign workers – 5,000 under customer quotas and 1,000 under its own quota.
It wants to enhance its information technology capabilities to improve operational efficiency, strengthen worker management, and better address the evolving needs of its customers.
In additiona, Manforce also plans to expand into the management of centralised labour quarters, which are purpose-built worker accommodations equipped with shared amenities and enhanced security features.
The number of registered foreign workers in the country is projected to grow at a compounded annual growth rate of 0.6%, from 2.35 million in 2025 to 2.42 million in 2029, TA Research said.
