KUALA LUMPUR: ACE-Market bound Liftech Group Bhd is expected to benefit from multiple industrial upcycles across different states, according to Malacca Securities in a note.
The research firm said the industrial lifting and handling equipment manufacturer is poised to tap the growing semiconductor and electronics manufacturing sector in the Northern region (Penang and Perak), premium aerospace infrastructure projects in the Central region (Klang Valley), and data centre substations wave across the Southern region (Johor).
"While having a market share of only 3.5% according to the IMR report, we believe it is poised for further growth as Liftech continues to capture the multi-sector industrial tailwinds across the country," it said.
Malacca Securities has assigned a fair value of 35 sen per share on Lifetech Group Bhd, representing a 20.7% upside from its initial public offering price of 29 sen per share.
The research firm said in the IPO note it projects a three-year earnings compound annual growth rate (CAGR) of 10.1%, with core profit after tax and minority interest (Patmi) expected to reach RM7.5mil, RM8.5mil and RM9.2mil over the next three years.
Additionally, Malacca Securities said the company's expansion into car park systems is anticipated to be a new revenue growth driver moving forward, especially given its first-mover advantage in the country.
Liftech management indicated that after contributing approximately RM2mil in sales last year, the car park systems offering is poised to achieve around RM10mil and above this year.
On potential geopolitical risk to its prospects, Malacca Securities said the company's supply chain bypasses the global maritime chokepoint in the Straits of Hormuz as its imports and components are sourced directly from strategic suppliers in China.
"While the group absorbs minor systemic fuel and petrol price hikes, the direct financial impact remains minimal, and the group would insulate its margins by charging back these incremental transport variances directly to clients via its maintenance services segment," said Malacca Securities.
At an IPO price of 29 sen per share, Liftech is expected to achieve a market capitalisation of RM91.3mil upon listing.
The IPO is open for subscription until June 16, 2026, while the company's ACE Market debut is scheduled for June 30, 2026.
