MERCURY Securities Research has assigned a fair value (FV) of RM1.615 on Malaysia’s premier modular kitchen systems maker, Signature International Bhd, which implies an approximate 18% upside from its current share price of RM1.37.
Viewing the group as strategically positioned to capture shifting demand within the Southeast Asian property landscape, the research house is bullish on Signature’s diversified revenue base that combines Singapore dollar-denominated earnings resilience and high-growth exposure to Malaysia’s premium commercial and residential sectors.
“While traditionally known for its modular kitchen dominance, the group’s scaled integration of Corten and Fiamma has solidified its status as a high-margin, integrated living solutions provider,” opined Mercury Securities in a non-rating coverage of Signature.
“We accord a FV at RM1.615 based on the 10-year historical P/E (price-to-earnings) average 11.0x of its selected peers, applied to its FY2026E EPS (earnings per share) of 14.7 sen.”
According to the research house, Signature has successfully transitioned from a modular kitchen specialist into a comprehensive home and living solutions powerhouse.
“This Total Home strategy – bolstered by the integration of Singapore’s market leader Corten and the Fiamma appliance partnership – allows the group to capture a significantly higher share of the consumer wallet,” envisages Mercury Securities.
“By controlling the entire value chain from 3D design to smart-appliance integration, Signature has built a high-barrier ecosystem that drives superior ROE (return on equity) through an asset-light model while shielding the group from the volatility of individual product cycles.”
Moreover, as Malaysian office occupancy shifts toward Grade A and Green-certified purpose-built offices (PBOs) (80.8% occupancy), Signature is positioned to capture surging premium fit-out demand.
“Additionally, the Budget 2026 tax incentives for commercial-to-residential conversions create a new structural growth vertical for the group,” noted the Mercury Securities.
With 32% of revenue sourced internationally, primarily via Corten, Signature further taps into Singapore’s high homeownership (85%+) and rising household furniture expenditure, according to the research house.
“This provides a robust Singapore-denominated earnings hedge and aligns with long-term premiumisation trends in the region,” asserted the research house.
Financial performance-wise, Mercury Securities expects Signature’s core earnings to register a three-year compound annual growth rate (CAGR) of 6% (FY2025E-FY2027E) on the back of stable revenue growth of c.4% year-on-year (yoy) supported by the group’s robust orderbook standing at RM1.14 bil as of end-September 2025.
Additionally, the research house expects the group to benefit from the rising home improvement expenditure in Singapore through its Corten brand and its position as an integrated home and living solutions provider to sustain its strong margins.
“For FY2025E onwards, we anticipate their gross profit/pre-tax profit/profit after tax margins to be largely stable at c.35%/18%/10%,” projected Mercury Securities.
“Key risks include: (i) downturn in property development in Malaysia and Singapore; (ii) foreign exchange fluctuations; (iii) delayed project earnings recognition; and (iv) weaker household expenditure.”
At the close of today’s (Feb 24) mid-day trading break, Signature was up 2 sen or 1.5% to RM1.37 with 151,300 shares traded, thus valuing the company at RM884.3 mil. – Feb 24, 2026
