MBSB said Sum Technology is well positioned to benefit from rising investments in the semiconductor and data centre sectors, according to an initial public offering.
The company specialises in cleanroom solutions, controlled environments and mechanical, electrical, process utilities and fire-fighting (MEPF) systems for mission-critical facilities.
Sum Technology provides end-to-end cleanroom engineering, procurement, construction and management (EPCM) solutions, covering design, procurement, installation, testing, commissioning and maintenance support.
The group also manufactures customised mechanical ventilation and air-conditioning (MVAC) products, including its proprietary MAC-branded air handling units (AHUs), providing it with vertical integration capabilities. Its key markets are Malaysia and the Philippines, which collectively contributed 94.5% of its financial year 2025 (FY25) revenue.
The company serves a wide range of customers across semiconductor, electrical and electronics (E&E), data centre, electric vehicle (EV) battery and industrial sectors.
Among its notable projects are cleanroom works for Unisem, EV battery facilities awarded by Honghui Engineering and a data centre project secured from SSPI Inc.
MBSB Research in its IPO Note highlighted that Sum Technology’s investment strengths include its direct exposure to semiconductor and data centre investments, end-to-end cleanroom EPCM capabilities, proprietary MVAC manufacturing and an expanding regional footprint.
The group is also expected to benefit from Malaysia’s New Industrial Master Plan (NIMP) 2030 and global supply chain diversification trends as companies seek alternative manufacturing locations.
Looking ahead, management plans to expand its presence within the semiconductor and data centre ecosystems through larger project participation, capacity expansion and regional growth.
Key initiatives include the development of a new facility in Jenjarom and the establishment of a dedicated office in the Philippines to support future expansion.
MBSB Research projected Sum Technology’s revenue growth at 20.0%, 18.0% and 15.0% for FY26, FY27 and FY28 respectively, supported by ongoing project execution and replenishment from semiconductor, E&E and data centre customers.
Earnings are forecast to grow by 17.1% in FY26, 20.6% in FY27 and 18.8% in FY28.
However, MBSB Research cautioned that key risks include the group’s relatively small scale and dependence on project replenishment from cyclical end-user industries.
A slowdown in semiconductor investment, delays in data centre rollouts or weaker macroeconomic conditions could affect project flows and earnings visibility.
For valuation, MBSB Research valued Sum Technology at RM0.33 per share based on a price-to-earnings ratio (PER) of 20.8 times CY26 earnings per share (EPS) of 1.58 sen.
With an IPO price of RM0.28 per share, the valuation implies an expected upside of 17.9%.
