Founder Group Ltd

Malaysian solar EPCC contractor with thin margins, a loss year and elevated leverage despite growing revenue.

Strengths

• Revenue grew ~34% with C&I project mix shifting up
• Gross profit recovered in FY2025 versus the prior year

Risks

• Net loss with low gross margin ~6.9% (23rd pct) and ROE -30%
• High debt-to-equity (2.0, 89th pct), current ratio <1 and short ~2.5-quarter cash runway
• Customer, supplier and subcontractor concentration plus fixed-price cost-overrun risk

Notable findings

• High leverageHigh leverage (debt/equity 2.05)
• Net lossNet loss (net margin -5.7%)
• Cash burnNegative free cash flow (-1.7M)
• Weak liquidityCurrent ratio 0.89 (<1)
• Customer concentration~27% of revenue from one customer/distributor — 1 % Total cost of sale 84,102,118 106,719,511 26,279,122 22,617,393 26