Malacca Securities has set a fair value of RM0.36 per share on Impact Capital Holdings Berhad (IMPACT), according to a research report published on 5 November 2026. The Sarawak-based systems integrator is pitching itself as the infrastructure partner for the state’s next phase of digital build-out, and the research house thinks its order book backs that claim.
What Impact Capital Does
Impact Capital has 21 years of operating history and designs, integrates and maintains ICT equipment for telecommunications networks, enterprise networks, data centres and security systems. Its customers are mainly state government bodies and utility providers. ICT integration made up 72.7% of FY26 revenue, while Sarawak accounted for 75.1%.
The research house ranks the group as the largest telecommunications equipment integrator among the industry players it benchmarked using Vital Factor data. FY26 revenue of RM154.7m sits ahead of listed peers Binasat (RM118.2m), Hextar Capital (RM84.8m) and Divfex (RM82.0m).
Among its marquee projects, Malacca Securities highlights SMART 600, the group’s largest contract to date, under which 426 rural tower sites have been installed and accepted. It also cites the POP 2 fibre rollout across c.681 rural sites and a long-running role as integrator for SEB Group, Sarawak’s power utility.
Key Financial Numbers
The research house projects core PATMI to grow at a 17.3% CAGR, reaching RM10.7m, RM12.3m and RM15.1m over FY27 to FY29. It attributes that growth to order book replenishment of RM200m to RM250m a year, a rising share of recurring maintenance and software income, and margin expansion as the mix shifts toward services.
Recurring revenue rose 73.4% to RM33.1m in FY26, lifting its share of group revenue to 21.4% from 13.1%. Gross margin climbed from 9.3% in FY23 to 14.2% in FY26, and the services segment, at 25.9% margin, rose to 23.8% of group gross profit.
FY26 PAT rose 33.3% to RM9.4m on revenue growth of only 6.4%, even as integration revenue fell 6.5%. The research house also flags Peninsular Malaysia, which rose to 23.5% of FY26 revenue from 18.5% in FY25.
How Malacca Securities Arrived at RM0.36
The fair value rests on a target P/E of 15.2x applied to mid-FY28 core EPS of 2.39 sen. Malacca Securities says that multiple is in line with the peer average forward P/E of 15.2x.
The research house points to near-term cover as the main support for its numbers. The order book stood at RM169.9m as at 30 September 2026, or 1.1x FY26 revenue, and includes RM133.7m scheduled for recognition between October 2026 and June 2027. That leaves only c.RM21m to be filled to match FY26 revenue.
Risks Flagged in the Report
Subcontractors account for 65.6% of cost of sales, a dependence the research house sees both as a margin lever and as a exposure, since the planned hiring of in-house M&E engineers and project managers is intended to reduce it. Concentration is another issue, with Sarawak supplying 75.1% of revenue and government budgets underpinning much of the pipeline. SMART 600 revenue eased in FY26, and the project-driven model means earnings can be lumpy from year to year.
What This Means for Retail Investors
The report gives retail investors a clear set of numbers to test against: the RM0.36 fair value, the RM0.22 IPO reference price, and the RM169.9m order book. The research house’s forecasts depend on order replenishment continuing at RM200m to RM250m a year, so tracking new contract wins will matter. The full report is available from M+ Online, and readers should review its assumptions and disclosures before making any decision.
Key Takeaways
- Malacca Securities sets a fair value of RM0.36 on IMPACT, 63.6% above the RM0.22 IPO price.
- The valuation applies a 15.2x target P/E to mid-FY28 core EPS of 2.39 sen.
- The RM169.9m order book, including RM133.7m due by June 2027, underpins FY27 visibility.
- Recurring revenue rose 73.4% to RM33.1m, now 21.4% of group revenue.
- Subcontractors at 65.6% of cost of sales and Sarawak’s 75.1% revenue share are the main concentration points flagged.
Frequently Asked Questions
What is the fair value of Impact Capital Holdings (IMPACT) according to Malacca Securities?
Malacca Securities Research assigns a fair value of RM0.36 per share to Impact Capital Holdings, which the research house says implies 63.6% upside from the RM0.22 IPO price. The figure is derived from a 15.2x target P/E on mid-FY28 core EPS of 2.39 sen.
How much of Impact Capital’s order book is already scheduled for recognition?
The research house noted that the RM169.9m order book as at 30 September 2026 includes RM133.7m scheduled for October 2026 to June 2027. Malacca Securities views this as the main support for FY27 earnings visibility.
Is Impact Capital’s recurring income growing?
Yes, according to Malacca Securities Research, recurring revenue rose 73.4% to RM33.1m in FY26. Maintenance renewals added RM7.2m and software subscriptions RM6.3m, and the research house expects this income to keep rising as a share of earnings.
📊 On AI Stock Terminal: IMPACT quarterly results · IMPACT announcements
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 05 November 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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