Sagtec Global (SAGT) Registration Filing summary

Company overview and business model

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

• Offers hardware sales (food ordering kiosks, power bank charging stations) and social media management services, with a subscription-based model for software and recurring revenue streams.

• Operates as a BVI holding company with all operations through majority-owned Malaysian subsidiaries.

• Top three sales categories in 2023: food ordering kiosks, power bank charging stations, and data management services.

Financial performance and metrics

• 2023 revenue: RM29.28M (USD6.38M), net profit: RM4.66M (USD1.01M), up 125% and 97% from 2022.

• 1H 2024 revenue: RM19.66M (USD4.17M), net profit: RM1.92M (USD407K), up 177% and 310% YoY.

• 2024E revenue: $11.23M–$11.96M, net income: $1.65M–$1.95M.

• Gross profit margin improved in tangible products, but service margins declined due to rising costs.

• High customer concentration: top five customers accounted for 66.3% of 2023 revenue.

• Gearing ratio as of June 2024: 18.95%.

Use of proceeds and capital allocation

• 25% for business expansion in Malaysia, 20% for marketing, 20% for R&D, 10% for fixed asset reserve (POS procurement), remainder for working capital.