Sagtec Global (SAGT) Registration Filing summary

Company overview and business model

• Provides customizable software solutions, including smart ordering systems (Speed+), POS integration, QR ordering, and self-service kiosks, primarily for the F&B sector in Malaysia.

• Offers additional services: software/app development, social media management, data management, and power bank charging stations.

• Revenue streams are diversified across subscriptions, software development, hardware sales, and service contracts.

• Business model emphasizes recurring revenue via subscriptions and bundled hardware/software solutions.

• Operations are conducted through majority-owned subsidiaries in Malaysia; the holding company is based in the British Virgin Islands.

Financial performance and metrics

• FY2023 revenue: RM29.28M (USD6.38M), net profit: RM4.66M (USD1.01M), up 125% and 97% YoY, respectively.

• H1 2024 revenue: RM19.66M (USD4.17M), net profit: RM1.92M (USD407K), up 177% and 310% YoY, respectively.

• FY2024 estimated revenue: USD9.5M–10.0M; net income: USD1.5M–2.0M.

• Gross profit margin improved for tangible products (34% in 2023), but service margins declined due to rising costs.

• Top five customers accounted for 66.3% of 2023 revenue; two vendors made up 49% of 2023 cost of sales.

• Gearing ratio as of June 2024: 18.95%.

Use of proceeds and capital allocation

• 25% for business expansion in Malaysia.

• 20% for marketing and promotion campaigns.

• 20% for product research and development.

• 10% for fixed asset reserve (bulk procurement of POS systems and hardware).

• Remainder for general working capital.