Inspace Creation Berhad Announces Solid First Quarter 2026 Results Ahead of ACE Market Listing

Inspace Creation Berhad, a Malaysian interior fitting-out specialist, has released its unaudited interim financial report for the first quarter ended 28 February 2026, providing the market and potential investors with a detailed look at its financial position and business prospects just prior to its anticipated listing on the ACE Market of Bursa Malaysia.

Key Financial Highlights

• Revenue: RM10.71 million for the quarter, derived entirely from interior fitting-out services.
• Gross Profit (GP): RM3.32 million, reflecting a healthy gross profit margin of 31.02%, which is consistent with FY2025’s margin of 30.72%.
• Profit Before Tax (PBT): RM0.75 million.
• Profit After Tax (PAT): RM0.59 million.
• Earnings Per Share (EPS): 0.19 sen, calculated based on 369,301,600 shares post-listing.
• Net Asset Per Share: RM0.05.
• Cash and Bank Balances: RM8.62 million as of 28 February 2026.
• Total Equity: RM18.56 million.
• Total Liabilities: RM17.32 million, with borrowings of RM4.73 million (all secured and denominated in RM).

Significant Corporate Developments

• IPO and ACE Market Listing:
  • The company is set for its ACE Market debut on 8 May 2026. The IPO involves a public issue of 68.5 million new shares at RM0.25 each and an offer for sale of 29.3 million existing shares, raising gross proceeds of RM17.13 million.
  • Proceeds allocation: 35% for capital expenditure, 26% for working capital, 16% for loan repayments, and 23% for listing expenses.
  • The enlarged issued share capital post-IPO will be 369.30 million shares.
• Group Expansion via Acquisitions:
  • On 9 March 2026, Inspace completed the acquisition of the entire equity interest in IDPM Sdn Bhd for RM7.52 million, satisfied by issuing 300.80 million new shares at RM0.025 each.
  • IDPM Sdn Bhd also acquired the remaining 51% of IDPM Associates Sdn Bhd and 40% of IDPM Builder Sdn Bhd for cash.

Operational and Strategic Updates

• Business Model: The company’s revenue is recognized based on the progress of project execution, i.e., the proportion of construction costs incurred to date versus total estimated costs. Seasonal factors such as year-end holidays and major festivals impacted the pace of work and revenue recognition during the quarter.
• Cost Structure: The cost of sales for the quarter was RM7.39 million, with material and installation costs making up 96.6% of this figure.
• Profitability: The group’s PBT and PAT were shaped by administrative expenses of RM2.44 million, mainly staff costs.

Prospects and Growth Plans

• Industry Outlook: Malaysia’s interior fitting-out sector is projected to grow from RM2.8 billion in 2025 to RM3.5 billion in 2027, at a CAGR of 11.8%. This is supported by commercial property expansions, end-user industries, retail, tourism, and continued investments.
• Expansion Initiatives:
  • The company plans to establish storage and mock-up spaces to improve procurement efficiency and client experience.
  • Active participation in tenders outside the Klang Valley to diversify its project pipeline and reduce reliance on a single region.
  • Broaden project portfolio to include hotels, common areas, and show galleries, engaging with property developers and main contractors.

Other Noteworthy Information

• No dividends have been declared or paid for the quarter or the financial year-to-date.
• No material unusual items, changes in estimates, or contingent liabilities were reported.
• There is one ongoing litigation involving an impaired receivable of RM268,141.10, but it is not expected to materially impact the group’s financial position. Any recovery would be a positive surprise.
• There are no derivative transactions or new material borrowings aside from those described.

Potential Price-Sensitive Factors for Shareholders

• The company’s strong gross profit margin and consistent profitability, despite seasonal slowdowns, may support investor confidence post-listing.
• Significant corporate exercises, including the acquisition of IDPM Sdn Bhd and its subsidiaries, could enhance future earnings and market reach.
• The successful IPO and prudent allocation of proceeds towards expansion, capital expenditure, and debt reduction position the company for sustainable growth.
• Exposure to the fast-growing commercial interior fitting-out industry with robust projected demand.
• Ongoing litigation has already been fully impaired; any successful recovery could provide upside to earnings.

Conclusion

Inspace Creation Berhad enters the public market with a solid financial foundation, clear growth strategies, and a positive industry outlook. The group is well-positioned to capitalize on Malaysia’s expanding interior fitting-out market and has laid out detailed plans for geographic and segment diversification. Investors should monitor the group’s post-listing performance, the realization of expansion plans, and any developments related to legal recoveries or additional contract wins, all of which could have material impacts on share value.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should perform their own due diligence and consult professional advisers before making any investment decisions. The information herein is based on the company’s unaudited interim financial report and may be subject to changes or updates.

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