EGP Energy Corporation Limited IPO Review (Looks Really Good?)

I will write the conclusion first as usual. 

(Idol Photo from Current Overseas Trip)

(Company Basic Details)

I think its ok for flipping and to await its half year results but given current disclosure in the prospectus, i am not keen to hold this beyond this year.

In fact, this company has so much positives that i was so convinced that i am going to press this company until i remembered i want to check a detail which turned out to be a party popper.

Basic Details

IPO Price: $0.51

Market Cap: 115 Million

Public Shares on Offer: 1 Million

Closing Date: 27 July 12pm

2025 Net Profit

Implied PE: 11.2

What i like about the company

1) Increasing Orderbook

Order book at 31 December 2025 was around 217 million. This has increased to 282.1 million as of 16 June 2026.

2) Increased Revenue Outlook

The company should easily increase its revenue as it expects to complete 60% higher in contract value in 2026 compared to 2025.

3) Sustained Financial Performance

Looking at the details provided on the company as of 31 May 2026, it seems like the company made around 5.6 million in the 1st 5 months of 2026. As such, on a 1 year scale, it seems likely the company can have sustained financial performance.

4) Easy to understand Sector

-I don't think its hard to understand that power demand will only increase and this causes substations to have to be constantly upgraded. This leads to a recurring future orderbook possibility.

5) Steady Customer Credentials

-SP Group is its major customer with over 75% of orderbook being awarded by them. Being state-owned, there is not much to worry about the default risk. It also increases the reputation of the company and reduces the likelihood it is a fraudulent company.

After writing so much good things, folks probably wonder why i am not a fan of this company in the longer run.

What i dislike about the company

1) Future Contracts Mix a Worry.

From the above, we can see that the margins for M&S is better and revenue between T&D / M&S is split 54:46.

While the full disclosure on how much of the 280+m contracts on hand is M&S is not said,

It seems like 200m of T&D project is left unrecognised. This might point towards a lower margin moving forwards unless more M&S orderbook is won.

This is also the reason why i feel like it might not be worth a long term gamble at 11 PE. Even after their recent contract victory of 19.2 million, the implied ratio of TD:MS is probably around 2:1 compared to the near 1:1 ratio for its revenue 

Conclusion

It baffles me why this company wants to list as it has a very solid cash position. Perhaps being asset light would result in being harder to take loans? Anyway, it is a very lean business with only 55 staff.

One of the owners of the company is also a listed company of a HK Listed Stock which does Civil Engineering in SG.

At 3+ PE, that company Wei Yuan Holdings (1343 HK) might be worth a better look.