Unique design for success

SIGNATURE Alliance Group Bhd, a company that makes customisable interior fit-outs, runs on a unique business model.

It’s like a cloud kitchen, but for manufacturing – except that Signature Alliance also deals with the clients directly.

It has zero foreign workers on its payroll and does not hire carpenters.

“Once we finalise the client’s requirement, we outsource the job to a ‘sifu’ (expert carpenter) who makes the furniture or fit-out in our manufacturing plants.

“We will provide the machinery. They will handle the workers and they are responsible to deliver the final output as per client’s requirement,” Signature Alliance group chief executive officer Darren Chang tells StarBiz 7.

Currently, about 70% of the carpentry or joinery parts, integral fixtures and wooden furniture are made in Signature Alliance’s plants.

The rest are manufactured by third-party producers.

The share of third-party producers has risen significantly, from 9.6% of Signature Alliance’s cost of sales in financial year 2021 (FY21) to 26% in FY24.

Chang says the production by third parties increased on the back of Signature Alliance’s business growth, while the group’s manufacturing plants hit maximum operational capacity.

“We are now limited by operational space.

“This is why more than half of our initial public offering (IPO) proceeds will go towards setting up a corporate office and a new production facility in Selangor,” Chang says.

The new plant will centralise production activities that are currently undertaken in its two plants, one in Bandar Baru Bangi and another in Puchong.

With this, the built-up area for production activities will more than double to about 50,000 sq ft, compared to the current space of 19,704 sq ft in Bandar Baru Bangi and 4,200 sq ft in Puchong.

“Once the new plant is operational, we are looking to substantially reduce the work we give to third-party producers to just 5%,” says Chang.

The increase in capacity is crucial, as it would enable the group to undertake bigger-sized projects.

“Post-IPO, we will have a bigger financial muscle to undertake bigger projects.

“Currently, we have a tenderbook size of about RM1bil and typically our success rate is roughly 15%-20%.”

Signature Alliance has a diversified client base, including many multinational companies and public-listed firms.

It provides interior fit-out services for the commercial, industrial and residential sector, including corporate offices, hospitality premises, property showrooms, retail outlets, food and beverages outlets and industrial properties.

Signature Alliance, however, has minimal presence in residential projects.

Chang said retail projects typically offer better margins for the group.

“I say this because such projects have a fast turnaround time. I can complete our work in four to six weeks from the day we enter the site, depending on store size.

“So I can use the same team to deliver more stores in a year.”

In Signature Alliance’s financial reporting, the commercial segment – comprising corporate offices and retail – contribute about 70% of the group’s revenue.

Among the retail clients that Signature Alliance has served are the Empire Sushi chain, Bananabro and Penang Chendul.

The industrial segment contributes close to 20% to the group’s revenue.

To further strengthen this segment, Chang says Signature Alliance plans to strengthen its presence in Penang, by focusing more on semiconductor facilities.

“We are also looking to have a stronger presence in Johor, focusing on retail and corporate offices. In Sabah and Sarawak, we are looking at more hospitality projects such as hotels,” he says.

Chang owns a 16.4% stake in the ACE Market-listed Signature Alliance, making him the second-largest shareholder.

The largest shareholder is Signature International Bhd, with a 37.5% equity interest.

Signature International, which is listed on the Main Market, is in turn 60.2% owned by Chin Hin Group Bhd.

Chin Hin is also listed on the Main Market of Bursa Malaysia.

The other listed firms under the Chin Hin umbrella are Ajiya Bhd, Chin Hin Group Property Bhd and Fiamma Holdings Bhd.

Signature International operates across three distinct segments: kitchen and wardrobe systems under the Signature and Corten brands, and a large-scale interior fit-out works business via Signature Alliance.

In FY25, interior fit-out works accounted for roughly half of Signature International’s revenue at RM478mil, while the kitchen and wardrobe operations contributed the other half at RM489mil combined.

As at end-December 2025, its combined order book stood at RM1.28bil, Signature International management tells StarBiz 7 via an email reply.

“That gives us clear revenue visibility into FY26 and beyond. Within the order book, Corten accounts for RM825mil, Signature for RM333mil, and interior fit-out for RM124mil.”

Commenting on its growth engines, Signature International says that Singapore remains a strong market.

Singapore-based Corten brand’s order book grew 21% from September to December 2025, reflecting active project wins in the premium residential and hospitality spaces.

“Second, our Signature Alliance business is scaling well after its ACE Market listing in June 2025, with revenue growing 24% to RM479mil in its first full financial year.

“Third, we are building our position as an integrated home and living solutions provider, where we capture a larger share of each project through design, cabinetry, appliances, and turnkey fit-out – rather than competing on individual product categories.”

On margins, Signature International aims to direct

more work through its higher-margin segments, particularly Corten and selected commercial fit-out projects, while maintaining cost discipline across the group.

“Roughly 30% of our revenue comes from Singapore through Corten. So when the ringgit strengthens, those Singapore dollar earnings translate into fewer ringgit.

“But, the picture is two-sided. A stronger ringgit reduces our import costs for materials and components, which is positive.”

Signature International, despite its large shareholding in Signature Alliance, does not meddle in the latter’s operations, says Chang.

“They are passive investors.”

By virtue of being under the Chin Hin umbrella, Chang says that there is a “higher chance” of Signature Alliance securing projects related to the parent and sister companies.

“We still have to tender like others, but we have the right of first refusal.

“Our related-party transactions are less than 30% of our total sales. We are not really dependent on our shareholders for our projects.”

Looking ahead, Chang remains hopeful of maintaining double-digit growth in profit after tax.

Signature Alliance is also working on potential merger and acquisition (M&A) deals.

“We are in the final stage for two M&A deals, and the announcement should come in the second quarter of this year,” says Chang.