• Local building contractor specialist, having secured notable projects valued at approximately RM1.03bn between 2014-2020 and equipped with an outstanding orderbook to RM545.0m to sustain earnings growth over the next 2 years.

• We project core earnings to grow by 49.5% YoY to RM15.2m in FY22f, owing to the (i) recognition of higher outstanding orderbook, (ii) cost saving measures and (iii) capacity expansions to undertake additional work orders.

• Siab Holdings is valued by pegging its FY22f core EPS of 3.1 sen to PE of 12.0x, leading to a fair value of RM0.37.

Company Background

• Siab Holdings Bhd’s (Siab Holdings) history traces back to the incorporation of Siab (M) Sdn Bhd in 1984. Following that, there were several changes in shareholders till the appointment of current management team in 2013. At the same year, Siab Network Sdn Bhd was established to provide of ICT solutions and services.

• Over the years with the current management team between 2014-2020, Siab Holdings have secured several notable projects with a combined value amounting to approximately RM1.03bn. Some key projects were Saville Kajang, Tesco Hypermarket, Seri Riana Residence (Phase2B) and Quayside Mall (the first shopping mall project which involved the construction of a commercial complex, office towers and car parking facilities in Kuala Langat, Selangor).

• Certain projects are accredited with the QLASSIC and CONQUAS 21 assessment systems. These accreditations are a testament to the quality of work completed that assess, measure and evaluate the quality and workmanship of amongst others, structural and architectural works related to the construction projects.

• As of 2020, Siab Holdings commands a 0.5% market share of the total revenue in the construction industry and 1.1% market share in the real estate construction market in Malaysia. Siab Holdings is also well equipped with an outstanding orderbook to RM545.0m to sustain earnings growth over the next 2 years.

Source: Mplus Research - 7 Feb 2022