Malacca Securities has assigned a fair value of RM0.36 per share for Inspace Creation, implying a 44% upside from its IPO price of RM0.25, based on a price-to-earnings (P/E) multiple of 12.5 times pegged to mid-FY2027 earnings.
The research house projects a three-year earnings compound annual growth rate (CAGR) of 14.3%, with core net profit attributable to shareholders (PATMI) expected to reach RM10.0 million to RM12.1 million over the period.
The growth it added is underpinned by continued demand for workspace optimisation, as well as the group’s planned sectoral and geographical expansion beyond its traditional Klang Valley base.
“Inspace Creation Berhad is expected to deliver steady earnings growth over the next three years, supported by resilient demand for commercial interior fit-out services and ongoing expansion plans,” according to a research report by Malacca Securities Sdn Bhd.
The Malaysian-based group specialises in full-service commercial interior fit-out solutions, including project planning, design conceptualisation, mechanical and electrical works, IT installation, and post-completion maintenance—primarily for office properties across the Klang Valley
Demand resilient across cycles
The report highlighted that demand for INSPACE’s services remains structurally resilient, driven by companies’ need to optimise workspace usage.
Even during economic slowdowns, businesses continue to require fit-out services—either to expand operations or reconfigure smaller office spaces for efficiency. This trend was evident during the COVID-19 period, when both expanding and downsizing firms relied on interior specialists.
Competitive edge with G7 certification
INSPACE’s G7 registration with the Construction Industry Development Board (CIDB) allows it to tender for projects of unlimited contract value, giving it an edge over many small and mid-sized competitors.
Combined with its ISO 9001:2015 certification and industry awards, the group is well-positioned to secure contracts from multinational corporations and large commercial clients.
Expansion into new segments
The company is actively diversifying its revenue base by bidding for projects outside the Klang Valley and expanding into new commercial segments such as hotel lobbies, show galleries, and common areas.
It also plans to collaborate more closely with property developers and main contractors to tap into a broader pipeline of projects.
Cost efficiency and client engagement initiatives
To enhance operational efficiency, INSPACE intends to acquire a 4,800 sq ft industrial property in the Klang Valley. This facility will include a storage area for bulk material procurement—helping reduce costs—and a mock-up showroom to showcase design options to clients, improving project conversion rates.
Market share expansion potential
Currently holding an estimated 1.3% share of Malaysia’s RM6.2 billion interior fit-out market, INSPACE is expected to grow its footprint further. Going by these assumptions the fair value seems justifiable, the bigger question will be that if the investors are just as confident.
Perhaps investors should take into account that the total value of interior fit-out works is projected to increase from RM2.8 billion in 2025 to RM3.5 billion by 2027, representing a CAGR of 11.8%, driven by growth in commercial real estate, rising foreign direct investment, and recovery in tourism and retail sectors.
