Sarawak-based ICT systems integrator Impact Capital Holdings Berhad is preparing for its ACE Market listing on 24 November 2026, and M+Global Research sees potential upside. In its IPO research note dated 5 November 2026, the research house assigned a fair value of RM0.36 per share, 63.6% above the RM0.22 IPO price. Its valuation applies a 15.2-times target price-to-earnings multiple to estimated mid-FY2028 core earnings per share of 2.39 sen.
An established position in Sarawak’s digital infrastructure
Impact Capital has operated since 2005, providing ICT equipment and systems integration for telecommunications infrastructure, enterprise networks, data centres and security systems. Its track record includes Sarawak connectivity initiatives such as SMART 600 and POP 2. M+Global identifies the Group as a leading telecommunications equipment integrator in Sarawak, positioning it to participate in further digital infrastructure spending.
Order book supports near-term visibility
As at 30 September 2026, Impact Capital had an outstanding order book of RM169.9 million, equivalent to around 1.1 times FY2026 revenue. Of this, RM133.7 million was scheduled for recognition between October 2026 and June 2027. This provides visibility into FY2027 activity, although continued contract replenishment remains important as existing projects are completed. M+Global assumes annual order replenishment of RM200 million to RM250 million for FY2027–FY2029; these figures are forecasts, not secured awards.
Recurring income and better margins
Recurring revenue rose 73.4% to RM33.1 million in FY2026, representing 21.4% of Group revenue versus 13.1% a year earlier, supported by maintenance renewals and software subscriptions. A larger services base could reduce dependence on one-off implementation projects and help improve the earnings mix.
FY2026 revenue increased 6.4% to RM154.7 million, while profit after tax climbed 33.3% to RM9.4 million. Gross profit margin improved to 14.2% from 11.9%, reflecting a more favourable project and service mix. M+Global projects core earnings growth to RM15.1 million by FY2029, implying a three-year compound annual growth rate of 17.3%.
Expansion creates opportunities, but execution matters
Beyond Sarawak, the Group plans to strengthen its operational footprint in Peninsular Malaysia, Sabah and Sarawak, while exploring higher-value offerings such as digital twin and data-related solutions. Its relatively asset-light model and FY2026 net cash position of approximately RM28.8 million offer flexibility to pursue growth. Nevertheless, new offices, staffing and technology development will require investment before returns are realised.
What investors should watch
The main test will be Impact Capital’s ability to replace revenue from sizeable projects, particularly as SMART 600 approaches completion, while sustaining margins and growing recurring services. Dependence on major customers and technology partners also warrants attention. At the IPO price, M+Global estimates the stock trades at about 8.6 times FY2028 earnings, compared with its 15.2-times target multiple. Whether the RM0.36 fair value is achieved will depend on contract wins, project delivery and earnings execution rather than valuation alone.
