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)

Monday, October 30, 2017

Kejuruteraan Asastera Berhad

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

Date
Open to apply: 30/10/2017
Close to apply: 07/11/2017
Listing date: 17/11/2017

Share Capital
Market Cap: RM80 mil
Public Issue: 112 mil shares (Open to public:80 mil shares)
Enlarged Issued Shares: 320 mil shares

Business (Electrical & Mechanical Engineering Services)
Electrical: 79.4%
FTTH: 3.4%
ELV: 4.4%
Mechanical: 0.8%
Sale of Goods:12%

Major Customer
Rexallent Construction S/B: 17%
Eng Han Group: 15.8%
Pembinaan Bintang Baru S/B: 13.6%
Demi Murni Holding S/B: 0.3%

Remaining Order Book
2017: RM77.96 mil
2018: RM107.32 mil
2019: RM31.64 mil

Fundamental
Market: Ace Market
Price: RM0.25
EPS: RM0.0089 (as 31 May)
P/E: 28.09 (amend..PE11.7)
Cash & fixed deposit after IPO: RM0.0836 per shares
NA after IPO: RM0.11
Debt ratio after IPO: 0.48 (Debt: 41.224 mil, Non-Current Asset: 9.626 mil, Current asset: 67.065 mil)
Dividend policy: -
ROE: 8.01%

Financial 
Trade Receivable: 47.7 days
Trade payable: 130.5 days

Past Financial Proformance (Revenue)
2016: RM93.124 mil (eps: 0.0205)
2015: RM87.098 mil (eps: 0.0142)
2014: RM56.954 mil (eps: 0.0121)

Net Profit Margin
2016: 7.0%
2015: 5.2%
2014: 6.8%

After IPO Sharesholding
Dato' Lai: 61.25%
Choong GS: 3.75%
Lu Chee Leong: 0.03%
Tong Siut Moi: 0.03%

Director Remuneration (from gross profit FPE2017)
Ferdaus Bin Mahmood: RM0-50k
Dato' Lai: RM1.15-1.2 mil
Choong GS: RM150k-200k
Lu Chee Leong: RM0-50k
Tong Siut Moi: RM0-50k
Total director remuneration from gross profit: 16.3% - 19.4%

Use of fund
Capital Expenditure: 11.0%
Repayment borrowing: 8.0%
Working Capital: 60.5%
Set-up New Branch: 3.0%
Listing Expenses: 17.5%

Conclusion
Good thing is:
1. 2018 still have order book RM107 mil.
2. Shares price RM0.25 (attract retail demand)
3. After listing Co-founder Dato' Lai still as major sharesholder.
4. Add..PE11.7 within acceptable range.

The bad things:
1. PE28 too high & too expensive, not a reasonable PE for the company revenue.
2. ROE8.01% is too low, Warren Buffet standard is 15%.
3. Trade payable 130.5days. Is not a good behavious & not a good image as a listing company.
4. Director fee too expensive.
5. 60.5% reserve for working capital is too high. Listing expenses 17.5% is also too expensive. 8% use to pay debt.

Conclusions
It is a below average IPO. Not suitable for long-term investment. Kindly avoid this IPO.
Happen some wrong data input on PE site, valuation still suggest to avoid this counter.

IPO Price: RM0.25
Good time: RM0.14 (PE16), (amend..0.31, PE 15)
Bad time: RM0.065 (PE7), (amend..0.14, PE7)

Company website: http://www.asastera.com/

Monday, June 19, 2017

Advancecon HOlding Berhad

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

Date
Open to apply: 19/06/2017
Close to apply: 28/06/2017
Listing date: 10/07/2017

Share Capital
Market Cap: RM253.310 mil
Public Issue: 90 mil shares (Open to public:30 mil shares)
Enlarged Issued Shares: 402.079 mil shares

Business (Construction)
Earthwork (64.2%) & Civil Enginnering (35.8%)

Major Customer
Ecoworld: 28.8%
Tropicana Group: 17.2%
Sp Setia: 13.6%

Remaining Order Book
2017: RM123.76 mil
2018: RM105.78 mil
2019: RM342.94 mil

Fundamental
Market: Main Market
Price: RM0.63
EPS: RM0.0658
P/E: 9.57
Cash & fixed deposit after IPO: RM0.087 per shares
NA after IPO: RM0.26
Debt ratio after IPO: 0.53 (Debt: 177.767 mil, Non-Current Asset: 165.864 mil, Current asset: 170.424 mil)
Dividend policy: 20% from PAT
ROE: 16.68%

Financial 
Trade Receivable: 122 days
Trade payable: 73 days
Credit for customer: RM 1.582 mil (1.2% from total trade receivable) not collected after 150days

Past Financial Proformance (Revenue)
2016: RM234.668 mil (eps: 0.0658)
2015: RM264.307 mil (eps: 0.0745)
2014: RM199.809 mil (eps: 0.0533)

Net Profit Margin
2016: 11.3%
2015: 11.3%
2014: 10.7%

After IPO Sharesholding
Dato'Phum: 23.7%
Lim Swee Chai: 12.7%
Pham Soon Kok: 7.3%
other 7 major sharesholder total: 25.9%

Director Remuneration (from gross profit 2016)
Yeoh Chong Keat: RM101k-150k
Dato'Phum: RM1.2mil-1.25mil
Lim Swee Chai: RM1mil-1.05mil
Ir. Yeo An Thai: RM700k-750k
Tung Kai Hung: RM450k-500k
Mohd Zaky bin Othman: RM50k-100k
Fathi Ridzuan bin Ahmad Fauzi: RM50k-100k
Total director remuneration from gross profit: 5.5% - 6.1%

Use of fund
Capital Expenditure: 52.4%
Repayment borrowing: 22%
Working Capital: 18.9%
Listing Expenses: 6.7%

Conclusion
Good thing is:
1. PE9.57, ROE16.68% is attractive, debt ratio is healthy.
2. Bad debt is minimum.
3. Have clear dividend direction.

The bad things:
1. Order book 2017 remain RM123.76mil, Unable to allocate the sale within January to 19/05/2017. Is important because 2016 revenue is 234mil, but 2017 order book 123mil. Revenue from January to 19/05/2017 will decide the company performance & price level.
2. Director revenue is consider high.
3. 22% IPO fund use to pay debt.
4. 59.6% revenue depend on 3 major customer.

Conclusions
It is a average IPO. It highly depend on the contract they receive for the company revenue growth.

IPO Price: RM0.63
Good time: RM0.85 (PE13)
Bad time: RM0.46 (PE7)

Company website: www.advancecon.com.my/

Friday, June 16, 2017

Lotte Chemical Titan HOlding Berhad

IPO (Rating 3.0 star out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 16/06/2017
Close to apply: 28/06/2017
Listing date: 11/07/2017

Share Capital
Market Cap: RM7.970 bil
Public Issue: 740.483 mil shares (IPO: 55.783 mil)
Enlarged Issued Shares: 2.468 bil shares

Business
Polypropylene (23.1%), Polyethylene Msia (34.9%), Polyethylene Indo (21.7%)

Geo Revenue
M'sia: 38.7%
Indonesia: 28.5%
China: 11.3%
Southeast Asia: 9.7%
Others: 11.8%

Major Customer
2016: top ten customer contribute revenue 23%

Fundamental
Market: Main Market
Price: RM8.00
EPS: RM0.53 (use total shares after IPO, in prospectus is RM0.7613 is before IPO)
P/E: 15
Cash & fixed deposit after IPO: RM0.42 per shares
NA after IPO: RM6.12
Debt ratio after IPO:  0.091 (Debt: 1.371 bil, Non-Current Asset: 11.749 bil, Current asset: 3.361 bil)
Dividend policy: 50% from nett profit
ROE: Before IPO 16.5%, after IPO 9.6%

Financial 
Trade Receivable: 30-60 days
Trade payable: 25.5 days
Bad Debt: RM1.7mil (0.4% from total trade receivable) not collected after 90days

Past Financial Proformance (Revenue)
2016: RM8.136 bil (eps: 0.7613)
2015: RM8.147 bil (eps: 0.3549)
2014: RM8.611 bil (eps: -0.0111)

Net Profit Margin
2016: 16.2%
2015: 7.5%
2014: 0.2%

After IPO Sharesholding
Lotte Chimecal Corporation: 67.8%

Director Remuneration (from gross profit 2016)
Tan Sri Dato' Abdul Rahman bin Mamat: RM250k-RM300k
Lee Dong Woo: RM950k-RM1mil
Lee Kwan Ho: RM1.15mil-RM1.2mil
Tan Sri Datuk (Dr.) Rafiah: RM150k-RM200k
Ang Ah Leck: RM150k-RM200k
Total director remuneration from gross profit:0.13% - 0.15%

Use of fund
Funding for project: 97.42% (5.771 bil)
Lising expenses: 2.58%

Conclusion
Good thing is:
1. Fundamental of company is strong.
2. Have very minimum debt compare asset.
3. Trade receivable & payable is in healthy level.
4. Director fee consider acceptable.
5. 97.42% of IPO fund use to expand bunisess.

The bad things:
1. Revenue doesn't growth for past 3 year, the EPS growth mainly from cost deduction.
2. Board of director have very minimum of shares in the company. Company shares price perform or not doesn't have much effect to director.
3. Profit margin increase mainly from low crude oil price. In case crude oil price increase the company cost is expected to increase.
4. PE15 is consider near to country PE. Consider as fair but not discount.
5. PE almost near to main competitor PCHEM. ROE% is PCHEM slighty better.

Conclusions
Is above average IPO.  heavy expand using the IPO fund will see return after 3 years. Good for investment period more than 3 years.

IPO Price: RM8.00
Good time: RM9.01 (PE17)
Bad time: RM5.30 (PE10)

Company website: http://www.lottechem.my/

Saturday, May 6, 2017

Inta Bina Group Berhad

IPO (Rating 2.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 05/05/2017
Close to apply: 15/05/2017
Listing date: 25/05/2017

Share Capital
Market Cap: RM133.814 mil
Public Issue: 107.051 mil shares
Enlarged Issued Shares: 525.259 mil shares

Core Business & Geo
Business: Construction Industry, General civil engineering, building general works
Geo : Klang Valley 83.27%, Johor 17.5%

Major Customer
2017: Mitraland (38.69%), Ecoworld (27.44%)
2016: UEM Sunrise BHD, Tropicana Corp BHD, Ecoworld, Plenitude BHD.

Fundamental
Market: Ace Market
Price: RM0.25
EPS: RM0.0238
P/E: 10.5
Cash & fixed deposit after IPO: RM0.074 per shares
NA after IPO: RM0.15
Debt ratio after IPO:  0.65 (Debt: 150.822 mil, Non-Current Asset:68.712 mil, Current asset: 161.068mil)
Dividend policy: nil
ROE: 16.1%

Order Book (RM445.907)
2019: RM48 mil
2018: RM171 mil
2017: RM226 mil

Financial 
Trade Receivable: 97 days
Trade payable: 74 days
Cashfow: -9.680mil (2014), -9.625mil (2015), 0.730mil (2016)

Past Financial Proformance (Revenue)
2016: RM257 mil (eps: 0.0238)
2015: RM271 mil (eps: 0.0215)
2014: RM245 mil (eps: 0.0198)

Net Profit Margin
2016: 4.95%
2015: 4.23%
2014: 4.31%

After IPO Sharesholding
Lim Pang Kiam: 0.37%
Lim Ooi Joo: 33.88%
Teo Hock Choon: 8.8%
Ahmad Bin Awi: 12.68%
Chau Yik Mun: 2.41%
Yap Yoon Kong: 4.52%
Dato' Sia Thian Sang: 0.37%

Director Remuneration (from gross profit 2016)
Lim Pang Kiam: RM0-50k
Lim Ooi Joo: RM450k-500k
Teo Hock Choon: RM400k-450k
Ahmad Bin Awi: RM100k-150k
Chau Yik Mun: RM350k-400k
Yap Yoon Kong: RM0-50k
Dato' Sia Thian Sang: RM0-50k
Total director remuneration from gross profit: 10.22% - 12.97%

Use of fund
Capital Expenditure: 18.68%
Repayment bank borrowing: 33.63%
Working Capital: 35.73%
Listing Expenses: 11.96%

Conclusion
Good thing is:
1. PE is around 10, Debt is healthy, ROE more than 15%.
2. Average Trade receiveable able to maintain less than 100 days.
3. 3 years PAT showing it qualified for main board.

The bad things:
1. No clear dividend policy
2. Director remuneration is expensis
3. USE IPO fund pay debt, 33.62

Conclusions
Is a normal IPO. The interesting part is that they qualified to IPO in market, but now IPO in Ace market.

IPO Price: RM0.25
Good time: RM0.35 (PE15)
Bad time: RM0.17 (PE7)