IPO Series - Swift Energy Technology Berhad - Industrial Automation & Power Supply - 捷能科技 - 工业自动化及电力系统供应商 #2025

Figure 1: IPO timetable of Swift Energy Technology Berhad
-Will be listed on the ACE Board

Info of IPO
Enlarged no. of shares upon listing:  1000.8 million
IPO price: RM0.28
Market capitalization: RM280.224 million
Estimated funds to raise from Public Issue:  RM70.06 million
PE ratio = 22.96x (based on FY2023)

Figure 2: Business model of Swift Energy Technology Berhad
Source: Swift Energy Technology Berhad IPO prospectus

Figure 3: Utilization of proceeds of Swift Energy Technology Berhad
Source: Swift Energy Technology Berhad IPO prospectus

Dividend Policy
-The group does not have any formal dividend policy

Figure 5: Major customers and suppliers of Swift Energy Technology Berhad in FPE2024
Source: Swift Energy Technology Berhad IPO prospectus

Figure 6: Profit & Loss statement of Swift Energy Technology Berhad

Figure 7: Financial position of Swift Energy Technology Berhad

Figure 8: Industry players (as compared to Swift Energy Technology Berhad)

Source: Swift Energy Technology Berhad IPO prospectus

Financial overview, industry market, and personal opinion
-The group has good financial fundamentals, in which the total liabilities to its total equity has a ratio of almost 1 to 1. Looking at the profit and loss statement, the PAT and PAT margins have projected exponential growth, rising from RM3.66 million and 6.52% in FY2021 to RM11.68 million and 14.34% in FPE 2024.
-The group’s customers are mainly from the O&G industry, grain products, edible oils, and food manufacturing industries.
-Based on the group’s outlook, it has a great potential to grow from time to time. However, as stated in the risk statement, the group does not have any long-term contracts or purchase agreements with the customers except Customer A (a Thailand company involved in Ex solar PV system). 

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By: Jshen Ng