Sagtec Global (SAGT) Registration Filing summary

Company overview and business model

• Provides customizable software solutions, including smart ordering systems (Speed+), POS integration, and application development for F&B and other industries.

• Offers hardware sales (food ordering kiosks, power bank charging stations), data management, and social media management services.

• Operates primarily in Malaysia through majority-owned subsidiaries; holding company is incorporated in the British Virgin Islands.

• Revenue streams are diversified across subscription services, software development, hardware sales, and data management.

• Top five customers accounted for 63.63% of 2023 revenue, with strong supplier and customer relationships.

Financial performance and metrics

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

• 1H 2024 revenue: RM19.66M (USD4.17M), net profit: RM1.92M (USD407K), up 177% and 310% over 1H 2023.

• Estimated 2024 revenue: $11.23M–$11.96M; net income: $1.65M–$1.95M.

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

• Gearing ratio as of June 30, 2024: 18.95%; current working capital deemed adequate for obligations.

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.

• No plans to pay dividends in the foreseeable future; earnings to be reinvested for growth.