Sunday, June 10, 2018

Revenue Group Berhad

IPO Rating ( 1.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 11/06/2018
Close to apply: 07/07/2018
Listing date: 18/07/2018

Share Capital
Market Cap: RM82.453 mil
Shares Issue to sell: 72.425 mil shares
Enlarged Issued Shares: 222.848 mil shares

Business
Cashless payment solution

Fundamental
Market: Ace Market
Price: RM0.37 (eps 6mth: RM0.0198)
P/E & ROE: PE9.34, ROE8.7%
Cash & fixed deposit after IPO: RM0.077 per shares
NA after IPO: RM0.0017
Total debt to current asset after IPO: 0.86 (Debt: 26.776  mil, Non-Current Asset: 33.754 mil, Current asset: 31.007 mil)
Dividend policy: -

Financial
Trade Receivable: 61.7 days
Trade payable: 78.7 days

Past Financial Proformance (Revenue, EPS)
FPE 2017: RM15.397 (eps 6mth: 0.0198)
2017: RM26.526 mil (eps: 0.0313)
2016: RM25.726 mil (eps: 0.0203)
2015: RM14.386 mil (eps: 0.0095)

RGB Net Profit Margin
FPE 2017: 21.8%
2017: 26.1%
2016: 17.5%
2015: 14.7%

Competitor PAT Margin %
RGB 26.1%
GHL 7.4%
Interbase 10.1%
IPAY88 21%
MOLPAY 16.9%

After IPO Sharesholding
Nor Azzam bin Abdul Jalil: 0.4%
Ng Chee Siong: 22.2%
Ng Shih Chiow: 21.5%
Ng shih Fang: 21.5%
Ooi Guan Hoe: 0.4%
Ng Chee Keong: 0.4%

Director Remuneration (from gross profit 2017)
Nor Azzam bin Abdul Jalil: RM66k
Ng Chee Siong: RM730k
Ng Shih Chiow: RM730k
Ng shih Fang: RM730k
Ooi Guan Hoe: RM48k
Ng Chee Keong: RM48k
Total director remuneration from gross profit: 14.94%

Use of fund
Capital Expenditure: 39.3%
Enchancement of recPay and expansion of IT team: 19.6%
Repayment Debt: 12.1%
Business expansion: 7.3%
Listing expenses: 13.1%

Conclusion
Good thing is:
1. In Sunrise industry, but in very competitive environment.
2. Revenue increasing over 3 year.
3. Directors still is major sharesholders.

The bad things:
1. Listing is on Ace market.
2. ROE% 8.7% is not attractive.
3. Director fee is 14.94% from gross profit, which is consider very expensive & it take big portion of company profit.
4. Use IPO fund 12.1% for debt repayment.
5. Debt to current asset is high 0.86.
6. No fix dividend policy.

Conclusions
Is consider a medium to high risk IPO. Suggest to avoid for long term investment.

IPO Price: RM0.37
Good time: RM0.43 (PE11)
Bad time: RM0.27 (PE7)

Tuesday, May 29, 2018

Mi Equipment Holding Berhad


IPO Rating (3.75 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 28/05/2018
Close to apply: 07/06/2018
Listing date: 20/06/2018

Share Capital
Market Cap: RM710 mil
Shares Issue to sell: 18.655 mil shares
Enlarged Issued Shares: 134.428 mil shares

Business
Design, Develop, Manufacture & Sale WLCSP storting machine (use in semiconductor industry)

Revenue on Geo (2017)
Southeast Asia 8.77%
Northeast Asia 63.70%
North Atlantic 10.78%
Malaysia 16.75%

Fundamental
Market: Main Market
Price: RM1.42 (eps: RM0.1186)
P/E & ROE: PE11.97, ROE18.7%
Cash & fixed deposit after IPO: RM0.38 per shares
NA after IPO: RM0.62
Total debt to current asset after IPO: 0.1189 (Debt: 31.873  mil, Non-Current Asset: 74.459 mil, Current asset: 267.983 mil)
Dividend policy: suggest 20% profit after tax

Financial
Trade Receivable: 75 days
Trade payable: 67 days

Past Financial Proformance (Revenue, EPS)
2017: RM173.321 mil (eps: 0.1186)
2016: RM57.089 mil (eps: 0.0322)
2015: RM105.143 mil (eps: 0.0818)

Competitor PAT Margin %
ASM Pacific: 4.49%
Daitron: 3.58%
Muehlbauer: 31.01%
Tesec: 10.4%
Mi Equipment: 34.21%

Net Profit Margin
2017: 34.22%
2016: 28.16%
2015: 38.91%

After IPO Sharesholding
Foo Hee Chaik: 0.06%
Oh Kuang Eng: 68%
Koay Huck Khim: 0.06%
Ong Tee Ni: 0.36%
Lee Boon Leng: 0.06%
Tan Boon Hoe: 0.06%

Director Remuneration (from gross profit 2017)
Foo Hee Chaik: 63k
Oh Kuang Eng: 1.711 mil
Koay Huck Khim: 0.292 mil
Ong Tee Ni: 0.226 mil
Lee Boon Leng: 45k
Tan Boon Hoe: 45k
Total director remuneration from gross profit: 2.55%

Use of fund
New factory & office (Bayan Lepas): 34.06%
New factory & office (Batu Kawan): 39.29%
R&D: 3.14%
Working Capital: 19.27%
Listing Expenses: 4.24%

Conclusion
Good thing is:
1. Semiconductor still is a sunrise industry.
2. PE11.4 still consider acceptable rang & ROE18.7% is good.
3. PAT margin is good.
4. Debt ratio is healthy.
5. Director fee is healthy.
6. 95.76% of IPO fund use to develop business.

The bad things:
1. Other compeitor PAT margin is around 10% or below. After IPO need to maintain high PAT margin.
2. Timing of listing in June 2018 might in market low period.
3. Technology changing is fast in this industry.
4. Customer repeat order will take years time because their product is selling machines, so they have to keep find new order.

Conclusions
Overall, this is a good IPO. Should able to see the company growth faster after 2 years time.
Investment will have good return on this company.

IPO Price: RM1.42
Good time: RM1.90 (PE16)
Bad time: RM0.92 (PE8)

Wednesday, April 18, 2018

Tri-Mode System (M) Berhad



IPO Rating ( 2.00 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 18/04/2018
Close to apply: 26/04/2018
Listing date: 11/05/2018

Share Capital
Market Cap: RM101.26 mil
Shares Issue to sell: 43.207 mil shares
Enlarged Issued Shares: 166 mil shares

Business
Logistic services provider (sea freight, continer haulage, air freight, freight forwarding, warehousing & marine insurance services)
Sea Freight: 59.0%
Container Haulage: 34.2%
Others: 6.8%

Revenue on Geo
Msia: 91.3%
Oversea: 8.7%

Fundamental
Market: ACE Market
Price: RM0.61 (eps: RM0.0361)
P/E & ROE: PE16.9, ROE17.25%
Cash & fixed deposit after IPO: RM0.0459 per shares
NA after IPO: RM0.39
Copyright: http://lchipo.blogspot.my/
Total debt to current asset after IPO: 1.45 (Debt: 37.064 mil, Non-Current Asset: 76.846 mil, Current asset: 25.557 mil)
Dividend policy: suggest 30% profit after tax

Financial
Trade Receivable: 59.4 days
Trade payable: 29.8 days

Past Financial Proformance (Revenue, EPS)
2017: RM85.505 mil (eps: 0.0361)
2016: RM71.381 mil (eps: 0.0281)
2015: RM78.693 mil (eps: 0.0196)

Competitor PE
Freight managament holding berhad: 9.7 (mkt cap 217.8mil)
Tasco: 11.4 (mkt cap: 362 mil)
Century: 20.1 (mkt cap: 305.5 mil)
Xinhwa: 21.9 (mkt cap: 246.2 mil)
Complete logistic: 13.4 (mkt cap: 89.1 mil)
Harbour-Link: 10.1 (mkt cap: 298.3 mil)
Tri-Mode: 16.9 (mkt cap: 101.3 mil)

Net Profit Margin
2017: 7.01%
2016: 6.54%
2015: 4.14%

After IPO Sharesholding
Dato' Hew: 50.1%
Datin Sim: 20.3%

Director Remuneration (from gross profit 2017)
Dato' Hew: RM1.349 mil
Datin Sim: RM0.771 mil
Dato' Markiman: RM52k
Chiam Tau Meng: RM27k
Wai Wah Kwan: RM27k
Total director remuneration from gross profit: 11.44%

Use of fund
Construction of HQ & Distribution Hub: 56.9%
Purchase prime mover & trailers: 1.9%
Pay debt: 19%
Working capital: 8.9%
Listing expenses: 13.3%

Conclusion
Good thing is:
1. Is a sunrise industry since world trade more transparent.
2. PE16.9 still consider acceptable rang & ROE17.25% is good.
3. Revenue & EPS have some increament.

The bad things:
1. Ace market (less regulated check)
2. Current asset unable to support total debt.
3. Director fee is too expensive.
4. Use 19% IPO fund to pay debt.
5. Net profit margin is still below 10%

Conclusions
Overall the industry is a profitable business & it is in sunrise industry. However business cost pull down the company revenue, copyright: http://lchipo.blogspot.my/.
With market uncertainty we might able to see lower price after IPO.

IPO Price: RM0.61
Good time: RM0.47 (PE13)
Bad time: RM0.29 (PE8)

Tuesday, March 6, 2018

GDB Holding Berhad

IPO Rating ( star 2.0 out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 05/03/2018
Close to apply: 12/03/2018
Listing date: 27/03/2018

Share Capital
Market Cap: RM63.750 mil
Shares Issue to sell: 162.50 mil shares (Open to public: 125 mil shares)
Enlarged Issued Shares: 500 mil shares

Business
Construction Services
Residential: 35.05%
Mixed Development: 31.09%
Commercial: 33.86%

Fundamental
Market: ACE Market
Price: RM0.35 (eps til Oct:0.0401)
P/E & ROE: PE8.73, ROE64%
Cash & fixed deposit after IPO: RM 0.0266 per shares
NA after IPO: RM0.13
Total debt to current asset after IPO: 0.799 (Debt: 101.112 mil, Non-Current Asset: 12.087 mil, Current asset: 126.471 mil)
Dividend policy: 30%

Financial
Trade Receivable: 23 days
Trade payable: 24 days

Past Financial Proformance (Revenue, EPS before IPO)
2017 (until Oct): RM240.665 mil (eps: 0.0401)
2016: RM276.906 mil (eps: 0.0642)
2015: RM169.539 mil (eps: 0.0604)
2014: RM 86.628 mil (eps: 0.0301)

Net Profit Margin
2017: 8.33%
2016: 5.81%
2015: 4.23%
2014: 3.78%

Order Book Completion Forecast
31/12/2018: RM379.411 mil
31/12/2019: RM441.459 mil
31/12/2020: RM 34.024 mil

After IPO Sharesholding
Tan Sri Dato' Ir. Hj. Zaini Bin Omar: 0.06%
Cheah Ham Cheia: 51.80%
Alexander Lo Tzone Leong: 22.2%
Cheah Jun Kai: -
Datuk Chia Lui Meng: 0.05%
Kow Poh Gek: 0.05%

Director Remuneration (from gross profit 2017)
Tan Sri Dato' Ir. Hj. Zaini Bin Omar: 64k
Cheah Ham Cheia: 1.127 mil
Alexander Lo Tzone Leong: 1.185 mil
Cheah Jun Kai: 225k
Datuk Chia Lui Meng: 46k
Kow Poh Gek: 49k
Total director remuneration from gross profit: 7.2%

Use of fund
Capital Expenditure: 56.39%
Working capital (pay debt): 34.06%
Working capital (Salaries): 1.55%
Listing Expenses: 8.0%

Conclusion
Good thing is:
1. 2018 & 2019 order book able to let the company continue to sustain profit.
2. Revenue, Net profit margin,EPS is increasing.
3. Director fee is acceptable.

The bad things:
1. Listing on ACE market.
2. Director fee is expensive.
3. Profit margin is still below 10%.
4. Too many competitor in the same industry.
5. Property segment still in weak stage, will effected their business as well.
6. Past 3 year revenue is highly reliance on major customers (Perdana Parkcity S/B, Trans Res Crop S/B, Etiqa Ins Bhd).

Conclusions
Is a average IPO. Still will have some growth on 2 years time.

IPO Price: RM0.35
Good time: RM0.52 (PE13)
Bad time: RM0.24 (PE6)

Monday, February 12, 2018

WEGMANS Holding Berhad

IPO (Rating 2.25 star out of 5.0)
Copyright@http://lchipo.blogspot.com/


Date
Open to apply: 13/02/2018
Close to apply: 22/02/2018
Listing date: 06/03/2018

Share Capital
Market Cap: RM145.000 mil
Shares Issue to sell: 53 mil shares (Open to public: 100 mil shares)
Enlarged Issued Shares: 500 mil shares

Business
Design, Manufacture, & sale of home furniture products.

Market (Revenue from)
Japan: 21.38%
US: 18.96%
Australia: 15.69%
UK: 12.37%
other 45 countries: 31.6%

Fundamental
Market: ACE Market
Price: RM0.29 (eps til sep: 0.0289)
P/E & ROE: PE9.42, ROE26.77%
Cash & fixed deposit after IPO: RM0.022 per shares
NA after IPO: RM0.12
Total Debt to current asset after IPO: 0.40 (Debt: 38.374 mil, Non-Current Asset: 62.619 mil, Current asset: 33.305 mil)
Dividend policy: -

Competitor PAT margin & ROE%
Wegmans: 18.24%, 26.77%
Latitude: 8.79%, 12.32%
Liihen: 11.73%, 27.69%
Poh Huat: 8.74%, 19.23%
Jaycorp: 8.58% 15.56%
SYF: 7.7%, 10.88%
Homeriz: 18.28%, 23.32%

Financial
Trade Receivable: 18 days
Trade payable: 62 days
Ave inventory turover: 70 days

Past Financial Proformance (Revenue, EPS before IPO)
2017 (until sep): RM63.372 mil (eps: 0.0289)
2016: RM85.636 mil (eps: 0.0383)
2015: RM66.216 mil (eps: 0.0324)
2014: RM39.416 mil (eps: 0.0075)

Net Profit Margin
2017: 18.24%
2016: 17.92%
2015: 17.87%
2014: 19.56%

After IPO Sharesholding
Chan Wan Seong: 0.02%
Keh Wee Kiet: 35%
Collin Law Kok Lim: 35%
Maziah binti Md Yamin: 0.02%
Chan Foong Ping: 0.02%

Director Remuneration (from gross profit 2017)
Chan Wan Seong: RM0-50k
Keh Wee Kiet: RM350k-400k
Collin Law Kok Lim: RM350k-400k
Maziah binti Md Yamin: RM0-50k
Chan Foong Ping: RM0-50k
Total director remuneration from gross profit: 2.8% - 3.8%

Use of fund
New factories,office,showroom,hostel: 37.93%
New machineries & equipment: 37.93%
Working capital: 12.07%
Listing expenses: 12.07%

Conclusion
Good thing is:
1. PE9 & ROE26 is acceptable level.
2. Revenue increasing over 4 years.
3. Founder still is the biggest sharesholder.
4. Director fee is acceptable.

The bad things:
1. Listing on ACE market.
2. Current strong MYR will effected the company sale.
3. Consider in a mature industry.
4. Too many competitor in the same industry.

Conclusions
Is a good IPO, but the timing is not encourage. The strong MYR, will effect revenue heavily.
Investor might have chance to buy lower then IPO price.

IPO Price: RM0.29
Good time: RM0.40 (PE13)
Bad time: RM0.18 (PE6)

Thursday, February 8, 2018

QES Group Berhad

IPO (Rating 2.25 star out of 5.0)
Copyright@http://lchipo.blogspot.com/



Date
Open to apply: 08/02/2018
Close to apply: 23/02/2018
Listing date: 08/03/2018

Share Capital
Market Cap: RM144.078 mil
Shares Issue to sell: 227.492 mil shares (Open to public: 151.661 mil shares)
Enlarged Issued Shares: 758.308 mil shares

Business
Distibution manufacturing & provision of enginnering services of inspection, test, measuring, analytical & automated handling equipment.

Market (Revenue from)
Msia: 47.1%
Asean: 50.7%

Fundamental
Market: ACE Market
Price: RM0.19 (eps: 0.0156)
P/E & ROE: PE9.13, ROE21.6%
Cash & fixed deposit after IPO: RM0.05 per shares
NA after IPO: RM0.09
Total Debt to current asset after IPO: 0.526 (Debt: 50.023 mil, Non-Current Asset: 28.150 mil, Current asset: 94.989 mil)
Dividend policy: -

Competitor PE & ROE
QES: PE9.13, ROE21.6%
Vitrox: PE33.74, ROE25.74
Elsoft: PE22.45, ROE29.44
Vis: PE11.94, ROE21.46
MMSV: PE11.84, ROE35.98

Competitor PAT margin
QES: 7.4%
Elsoft: 48.9%
MMSV: 26.8%
Vis: 15.6%
Vitrox: 27.7%

Financial
Trade Receivable: 65
Trade payable: 75

Past Financial Proformance (Revenue, EPS before IPO)
2017 (until sep): RM139.634 mil (eps: 0.0156)
2016: RM137.285 mil (eps: 0.0125)
2015: RM128.000 mil (eps: 0.0094)
2014: RM105.381 mil (eps: 0.0069)

Net Profit Margin
2017: 9.1%
2016: 7.4%
2015: 5.8%
2014: 5.2%

After IPO Sharesholding
Chew Ne Weng: 41.1%
Liew Soo Keang: 28.9%

Director Remuneration (from gross profit 2017)
Adnan Bin Zainol: RM0-50k
Chew Ne Weng: RM1.05 mil - 1.1 mil
Liew Soo Keang: RM0.95 mil - 1.0 mil
Chia Gek Liang: RM0-50k
Hoh Chee Mun: RM0-50k
Total director remuneration from gross profit: 2.98% - 3.30%

Use of fund
Product development: 16.8%
Working capital: 11.3%
Pay debt: 24.3%
Capital expenditure: 37.2%
Listing expenses: 10.4%

Conclusion
Good thing is:
1. PE9 & ROE21 with acceptable level.
2. Revenue increasing over 4 years.
3. Founder still is the biggest sharesholder.
4. Director fee is acceptable.
5. Consider in a sunrise industry.

The bad things:
1. Listing on ACE market.
2. Net profit margin is less then 15%.
3. IPO fund 24.3% use to pay debt.
4. Competitor have better ROE, better PAT margin.

Conclusions
It is a meet fair value IPO. However, QES is not the best choice compare among their competitor.

IPO Price: RM0.19
Good time: RM0.27 (PE13)
Bad time: RM0.145 (PE7)

Wednesday, December 13, 2017

Binasat Communications Berhad

IPO (Rating 3.25 star out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 13/12/2017
Close to apply: 26/12/2017
Listing date: 08/01/2018

Share Capital
Market Cap: RM56.952 mil
Shares Issue to sell: 125.979 mil shares (Open to public:85.979 mil shares)
Enlarged Issued Shares: 260 mil shares

Business (2017 Revenue)
Satellite Telecommunication Network: 51.1%
Mobile Telecommunication Network: 28.9% (mobile network instalation & setup)
Fibre Optic Telecommunication Network: 20.0%

Major Customer
Maxis 49.5%
Huawei 26.3%
Wavesstream Corp: 2.9%

Fundamental
Market: ACE Market
Price: RM0.46 (eps: 0.03855)
P/E & ROE: PE11.93, ROE16.19%
Cash & fixed deposit after IPO: RM0.09 per shares
NA after IPO: RM0.2375
Debt ratio after IPO: 0.228 (Debt: 18.249 mil, Non-Current Asset: 36.635 mil, Current asset: 43.508 mil)
Dividend policy: -

Competitor PE & ROE
Binasat: PE11.93, ROE
OCK: PE26.2, ROE6.59
Redtone: PE-ve, ROE-ve

Competitor Profit Margin
Binasat: 18.38%
Fiberail SB: 27%
OCK: 7.2%
Wellcom: 8.66%

Financial
Trade Receivable: 122
Trade payable: 75
Credit for customer: 9.9% from payables trade exceeded credit period)

Past Financial Proformance (Revenue, EPS before IPO)
2017: RM54.519 mil (eps: 0.0576)
2016: RM46.434 mil (eps: 0.0412)
2015: RM39.435 mil (eps: 0.0272)
2014: RM31.819 mil (eps: 0.0194)

Net Profit Margin
2017: 18.38%
2016: 15.43%
2015: 11.99%
2014: 10.58%

After IPO Sharesholding
Tan Sri Datuk Seri Ahmad Fuad: 0.4%
Na Boon Aik: 25.8%
Na Bon Tiam: 25.8%
Dato' Seow Thiam Fatt: 0.2%
Dato' Tan Yee Boon: 0.2%
Datuk Lalla Nezha: 0.2%

Director Remuneration (from gross profit 2017)
Tan Sri Datuk Seri Ahmad Fuad: 0.49%-0.73%
Na Boon Aik: 4.62%-4.86%
Na Bon Tiam: 4.38%-4.62%
Dato' Seow Thiam Fatt: 0.24%-0.49%
Dato' Tan Yee Boon: 0-0.24%
Datuk Lalla Nezha: 0-0.24%
Total director remuneration from gross profit: 10.21%-11.18%

Use of fund
Setting up teleport: 36.3%
Enchance operation & maintainence services capability: 12.4%
Enchance fibre optic network installation & commissioning services: 12.1%
Expand business into Vietnam, Myanmar & Loas: 3.8%
Working capital: 27.3%
Listing expenses: 8.1%

Conclusion
Good thing is:
1. Sunrise Industry.
2. PE & ROE is in reasonable level.
3. Having low debt ratio.
4. Revenue & EPS continue growing for pass 4 years.
5. Profit margin increasing.
6. Co-founder Na Bon Tiam still in the company, total up Na family hold 50%
7. IPO fund 91.9% is using to expand busisness.
8. Expnad into Myammar, Vietbnam & Loas.

The bad things:
1. Listing in ACE amrket.
2. No formal dividend policy.
3. Profit Margin basic is not the industry leader, but still in acceptable range.
4. Trade receivable need average 122 days.
5. Director fees is 10.21%-11.18% which is consider too high.

Conclusions
It is a good IPO & it is a runrise industry. The only concern part is the director fees (high director fee is not good for business), & fast changing techonology environment in their business industry.

IPO Price: RM0.46
Good time: RM0.62 (PE16)
Bad time: RM0.305 (PE8)