NewParadigm Research has issued a “BUY” call on Manforce Group Berhad ahead of its debut on the ACE Market of Bursa Malaysia tomorrow, May 6, 2026.
The research house assigned a Target Price (TP) of RM0.48, representing a potential 26% upside from its Initial Public Offering (IPO) price of RM0.38. The valuation is underpinned by a projected 23% Net Profit Compound Annual Growth Rate (CAGR) through FY2028.
Manforce’s unique business model focuses on managing foreign workers for major clients in the manufacturing, services, and construction sectors. Unlike traditional recruitment agencies, Manforce generates predictable recurring income by providing ongoing management services to workers and clients
Manforce’s IPO price of RM0.38 implies a valuation of 11x FY27 price-to-earnings (PER). NewParadigm Research believes a 14x PER is more appropriate, aligning the company with its industry peers who currently trade at a weighted average of 14.4x
The report notes that the business is “supply-limited” rather than “demand-driven,” as Malaysia continues to face a significant shortage of domestic labor in essential sectors, ensuring a steady appetite for Manforce’s services.
While the outlook is bullish, the research house highlighted policy direction as the primary long-term risk. Government shifts regarding foreign worker quotas or labor dependency could impact the growth runway. However, Manforce’s model of maintaining high worker satisfaction helps minimize costly attrition, providing a stable earnings floor.
- Listing Market: ACE Market, Bursa Malaysia
- Listing Date: May 7, 2026
- Funds Raised: RM30.4 million
- Market Capitalisation: RM152 million (at IPO price)
The RM30.4 million raised from the IPO is expected to facilitate the group’s expansion as it scales its operations to meet the influx of new foreign workers scheduled to arrive over the next two years.
