IPO (Rating 2 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 18/11/15
Close to apply: 27/11/15
Listing date: 10/12/15
The counter
1 successful subscribed free 1 warrant
Fundamental
Market: Main Market
Price: RM0.50
EPS: -
P/E: -
Dividend policy: no dividend (Until finish acquisition)
Business
F&B business (brading & marketing, Manufacturing, Wholesale distribution)
Target Acquisition Market
Thailand, Vietnam, Philippines, Malaysia, Singapore, Indonesia.
After IPO Sharesholding
Raintree: 20%
IPO Investor: 80%
Director
Tunku Dato' Mu'Tamir: Chicken Rice Shop, Ayam Brand, Mafipro...
Dato' Tan And Meng: previous F&N CEO, Creador Senior Advisor...
Tan Eng Guan: Tchong motor(22 yrs), F&N...
Mohd. Shah Bin Hashim: Nestle legar manager...
Ng Ing Peng: CIMB group (director financial department, 12yrs)
Use of fund
Qualifying Acquisition (36 mth): 89.76%
Working Capital (36mth): 3.82%
Listing Expenses (30days): 3.99%
Remuneration of management team (36mth): 2.43%
Value Per Shares
No of shares: 1bil
IPO & Raintree fund: RM410 mil
Value per share before aquasition: RM0.39
Value per Warrant
Warrant exercise price: RM0.50
**warrant will be is premium (out-of-cash), if shares price below RM0.50
**warrant will be in-cash, if shares price above RM0.50
Conclusion
Good thing is:
1. F&B is a stable industry & safe haven at economic crisis.
2. Creador (Brahmal Vasudevan) invest in Red Sena. Creador is a private fund that having good record in investment (e.g. previous record is invets in IFCaMSC, GHLsys...before the counter move).
The bad things:
1. Is a SPAC counter, no fundamental can be measure.
2. Heavily depend on the exprience of director to get the acquisition.
Conclusions
Is a good high risk counter. But I believe price can be lower than IPO price. SPAC acquisition is impossible to complete in one or two day. Because is a risky counter, try not to hold warrant. Buy only the mother shares.
If success to take the IPO, sell the warrant at morning market open. If you not able to get the IPO, try buy at below RM0.50 ( the share come with warrant, high possibility price will below RM0.50 because of dillution of warrant).
***I see opportunities on this counter, but risk is high. Buy with cash that you willing to lose.
Thursday, November 19, 2015
Wednesday, October 28, 2015
KIM TECK CONSOLIDATED BERHAD
IPO (Rating 3.75 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/10/15
Close to apply: 12/11/15
Listing date: 25/11/15
Fundamental
Market: ACE Market
Price: RM0.15
EPS: RM0.0133
P/E: 11.28x
NA after IPO: RM0.14
Debt ratio: 0.595 (Debt: RM136.747 mil, Asset: RM229.921 mil)
Dividend policy: no formal dividend
Business (distribution & warehousing)
F&B products, Personal care products,household products, baby care products, OTC Drug & Health supplememnts.
Main Revenue
Sabah : 90.80%
Labuan: 4.69%
Sarawak: 4.51%
Past Financial Proformance
2012: RM200 mil (EPS:RM0.0058)
2013: RM222 mil (EPS:RM0.0173)
2014: RM229 mil (EPS:RM0.0082)
2015: RM299 mil (EPS:RM0.0105)
After IPO Sharesholding
72.17% : Datin Lim, Lindfay Lau, Benedick Lau (all hold by KTC)
Use of fund
Acquasition of Warehouse in Sibu, Miri, Kuching: 42.26%
Construction of warehouse facilities: 9.39%
Purchase of equipment for warehouse: 14.07%
Working Capital: 22.07%
Listing Expenditure: 12.21%
Conclusion
Good thing is:
1. Revenue continue growing each years.
2. P/E 11.28x still consider at good price.
3. Net asset near to IPO price NA RM0.14
4. Debt ratio still consider healthy.
5. 87.79% IPO fund use to growth the business.
6. Large portion of shares hold by KTC, showing the good confidence level on their own company.
The bad things:
1. 101 bad thing to the company is will listing under ACE market.
2. Mother company KTC holding listed as public company before, & convert back into private limited company at 06/06/2014, this make investor worry after the new IPO will privatise again. This might also the reason the IPO at small & list in ACE market.
3. No formal dividend policy, however they are suggest to pay 20% of earning to sharesholders.
Conclusions
This is what we want!! IPO with honest, use IPO fund to expand business but not pay company debt.
However, it is very sad that this company will listing in ACE market. In overall, this is a good IPO.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/10/15
Close to apply: 12/11/15
Listing date: 25/11/15
Fundamental
Market: ACE Market
Price: RM0.15
EPS: RM0.0133
P/E: 11.28x
NA after IPO: RM0.14
Debt ratio: 0.595 (Debt: RM136.747 mil, Asset: RM229.921 mil)
Dividend policy: no formal dividend
Business (distribution & warehousing)
F&B products, Personal care products,household products, baby care products, OTC Drug & Health supplememnts.
Main Revenue
Sabah : 90.80%
Labuan: 4.69%
Sarawak: 4.51%
Past Financial Proformance
2012: RM200 mil (EPS:RM0.0058)
2013: RM222 mil (EPS:RM0.0173)
2014: RM229 mil (EPS:RM0.0082)
2015: RM299 mil (EPS:RM0.0105)
After IPO Sharesholding
72.17% : Datin Lim, Lindfay Lau, Benedick Lau (all hold by KTC)
Use of fund
Acquasition of Warehouse in Sibu, Miri, Kuching: 42.26%
Construction of warehouse facilities: 9.39%
Purchase of equipment for warehouse: 14.07%
Working Capital: 22.07%
Listing Expenditure: 12.21%
Conclusion
Good thing is:
1. Revenue continue growing each years.
2. P/E 11.28x still consider at good price.
3. Net asset near to IPO price NA RM0.14
4. Debt ratio still consider healthy.
5. 87.79% IPO fund use to growth the business.
6. Large portion of shares hold by KTC, showing the good confidence level on their own company.
The bad things:
1. 101 bad thing to the company is will listing under ACE market.
2. Mother company KTC holding listed as public company before, & convert back into private limited company at 06/06/2014, this make investor worry after the new IPO will privatise again. This might also the reason the IPO at small & list in ACE market.
3. No formal dividend policy, however they are suggest to pay 20% of earning to sharesholders.
Conclusions
This is what we want!! IPO with honest, use IPO fund to expand business but not pay company debt.
However, it is very sad that this company will listing in ACE market. In overall, this is a good IPO.
Friday, September 4, 2015
AL-SALAM REAL ESTATE INVESTMENT TRUST
IPO (Rating 3 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/09/15
Close to apply: 15/09/15
Listing date: 29/09/15
Fundamental
Market: Main Market
Price: RM1.00
Distribution: RM0.0641 (2016: 99.9% rate), RM0.0181 (2015 9mth: 99.9% rate)
P/E: 32x (base on 2015 estimate), 15x (2016)
NA after IPO: RM0.98
Debt ratio: 0.377 (Debt: RM345 mil, Asset: RM916 mil) & debt policy should not more than 50% financing
Dividend policy: Min 90% from distributable income & half year basic
Asset valuation: every 3 years
Syariah Status: Yes
Business
Rental income, parking income, advertising, & others.
Main Revenue (until June 2015 in Nett)
Komtar JBCC: RM2.528 mil
Menara Komtar: RM1.75 mil
@mart Kempas: RM1.842 mil
KFCH College:RM1.097 mil
QSR Properties: RM18 mil p.a. (27 properties of KFC & Pizza hut restaurant)
Fees
Trustee's Fee: 0.02% p.a.
Management Fee: 0.25%-1%
Aquisition Fee: 1%
Divestment Fee: 0.5%
Others: -
Use of fund
Payment of Puchase: 96.24%
Listing Expenses: 3.76%
Conclusion
Good thing is:
1. IPO price (RM1.00) very near to net asset value (RM0.98).
2. REIT income focus/distribution rental, which is not a high risk counter.
3. Income from REIT in Malaysia is only tax able 10%.
4. Having Syariah status, which it will attractive to fund manager (e.g. Islamic unit trust) to purchase.
5. Debt ratio is still in healthy level 0.377.
6. Having forcase distribution income for 2016 is 6.41%
The bad things:
1. Estimated 9mth 2015 distribution income is RM10.5 mil, but in 2016 is RM37.229 mil. Sound good but already 3x times from 2015 income.
2. Having net property loss in 2014.
Overall, this is a normal IPO. 6.41% dividend yield is normal level for a REIT counter. The REIT IPO at current bad market enviroment, we might get opportunities to buy below it IPO price RM1.00 & 7% yield is around RM0.91
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/09/15
Close to apply: 15/09/15
Listing date: 29/09/15
Fundamental
Market: Main Market
Price: RM1.00
Distribution: RM0.0641 (2016: 99.9% rate), RM0.0181 (2015 9mth: 99.9% rate)
P/E: 32x (base on 2015 estimate), 15x (2016)
NA after IPO: RM0.98
Debt ratio: 0.377 (Debt: RM345 mil, Asset: RM916 mil) & debt policy should not more than 50% financing
Dividend policy: Min 90% from distributable income & half year basic
Asset valuation: every 3 years
Syariah Status: Yes
Business
Rental income, parking income, advertising, & others.
Main Revenue (until June 2015 in Nett)
Komtar JBCC: RM2.528 mil
Menara Komtar: RM1.75 mil
@mart Kempas: RM1.842 mil
KFCH College:RM1.097 mil
QSR Properties: RM18 mil p.a. (27 properties of KFC & Pizza hut restaurant)
Fees
Trustee's Fee: 0.02% p.a.
Management Fee: 0.25%-1%
Aquisition Fee: 1%
Divestment Fee: 0.5%
Others: -
Use of fund
Payment of Puchase: 96.24%
Listing Expenses: 3.76%
Conclusion
Good thing is:
1. IPO price (RM1.00) very near to net asset value (RM0.98).
2. REIT income focus/distribution rental, which is not a high risk counter.
3. Income from REIT in Malaysia is only tax able 10%.
4. Having Syariah status, which it will attractive to fund manager (e.g. Islamic unit trust) to purchase.
5. Debt ratio is still in healthy level 0.377.
6. Having forcase distribution income for 2016 is 6.41%
The bad things:
1. Estimated 9mth 2015 distribution income is RM10.5 mil, but in 2016 is RM37.229 mil. Sound good but already 3x times from 2015 income.
2. Having net property loss in 2014.
Overall, this is a normal IPO. 6.41% dividend yield is normal level for a REIT counter. The REIT IPO at current bad market enviroment, we might get opportunities to buy below it IPO price RM1.00 & 7% yield is around RM0.91
Wednesday, August 26, 2015
AEMULUS HOLDING BERHAD
IPO (Rating 2 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 26/08/15
Close to apply: 03/09/15
Listing date: 15/09/15
Fundamental
Market: ACE Market
Price: RM0.28
EPS: RM0.0107
P/E: 26x
NA after IPO: RM0.14
Debt ratio: 0.11 (Debt: RM7.68 mil, Asset: RM69.75 mil)
Dividend policy: no formal dividend
Business
Semiconductor Tester product, RF Tester, & others.
Main Revenue
Malaysia: 41.97%
S'pore: 23.25%
China: 20.24%
USA: 11.04%
Others: 3.5%
Founder (Co-founder)
Director- Ng Sang Beng (17.85%)
Director- Yeoh Chee Keong (11.66%)
Proposed Director Fee:
Directors: 7 Person
Total min-max: RM950k - RM1.3mil (5.8%-7.9%)
**Proforma revenue before tax: RM16.37mil
Use of fund
Working Capital: 52.40%
R&D expenditure: 24.41%
Purchase of property, plant & equipment: 8.14%
Marketing: 4.88%
Listing Expenditure: 10.17%
Conclusion
Good thing is:
1. Co-founder still with the company.
2. Having revenue from other than Malaysia.
3. Debt ratio is low, & still healthy.
The bad things:
1. Ace Market.
2. The business is produce physical product like semiconductor tester, but IPO fund allocation 52.4% in working capital & only 8.14% is use for purchase asset.
3. Casflow profit before tax is RM4.7mil, but director fee is RM950k-RM1.3mil.
4. Earning per share is too low RM0.0107 (proforma 2015), & PE is 26x.
Overall, this is not a good IPO. Earning does not attactive, unless they able to increase future earning per share.
Suggestion AVOID this IPO. I reverse 2 star out of 5 star, because we still need consider about the future growth of semiconductor industry & foreign currency gain effect.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 26/08/15
Close to apply: 03/09/15
Listing date: 15/09/15
Fundamental
Market: ACE Market
Price: RM0.28
EPS: RM0.0107
P/E: 26x
NA after IPO: RM0.14
Debt ratio: 0.11 (Debt: RM7.68 mil, Asset: RM69.75 mil)
Dividend policy: no formal dividend
Business
Semiconductor Tester product, RF Tester, & others.
Main Revenue
Malaysia: 41.97%
S'pore: 23.25%
China: 20.24%
USA: 11.04%
Others: 3.5%
Founder (Co-founder)
Director- Ng Sang Beng (17.85%)
Director- Yeoh Chee Keong (11.66%)
Proposed Director Fee:
Directors: 7 Person
Total min-max: RM950k - RM1.3mil (5.8%-7.9%)
**Proforma revenue before tax: RM16.37mil
Use of fund
Working Capital: 52.40%
R&D expenditure: 24.41%
Purchase of property, plant & equipment: 8.14%
Marketing: 4.88%
Listing Expenditure: 10.17%
Conclusion
Good thing is:
1. Co-founder still with the company.
2. Having revenue from other than Malaysia.
3. Debt ratio is low, & still healthy.
The bad things:
1. Ace Market.
2. The business is produce physical product like semiconductor tester, but IPO fund allocation 52.4% in working capital & only 8.14% is use for purchase asset.
3. Casflow profit before tax is RM4.7mil, but director fee is RM950k-RM1.3mil.
4. Earning per share is too low RM0.0107 (proforma 2015), & PE is 26x.
Overall, this is not a good IPO. Earning does not attactive, unless they able to increase future earning per share.
Suggestion AVOID this IPO. I reverse 2 star out of 5 star, because we still need consider about the future growth of semiconductor industry & foreign currency gain effect.
Tuesday, June 30, 2015
IKHMAS JAYA GROUP BERHA
IPO (Rating 3 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 30/06/15
Close to apply: 07/07/15
Listing date: 27/07/15
Fundamental
Market: Main Market
Price: RM0.57
EPS: RM0.0547
P/E: 10.42x
NTA after IPO: RM0.31
Debt ratio: 0.52 (Debt: RM179 mil, Asset: RM342 mil)
Dividend policy: recommed minimum 20% dividend
Shariah Status: Yes
Business
Piling & foundation works, construction, civil works, prefabricated building system.
Order book
Business is more to project-by-project secured.
bal in 2015: RM279mil
2016: RM29 mil
Main Revenue
Piling & Foundation: 54.75%
Brige Construction: 25.41%
Building Construction: 16.85%
Manufacture & Instalation of Prefabricated buiding system: 2.99%
Principal Market
KL: 52.36%
Selangor: 38.83%
Others: 8.81%
Founder
Director- Dato'Ang Cheng Siong: 65% (indirect)
Director- Dato' Ir Dr Khoo Ping Sen:65% (indirect)
Director- Siew Mun Lout:-
Key Management: Yap Yoon Fatt:-
Use of fund
Purchase construstion equipment: 44.31%
Purchase Machinery & equipment for manufacturing: 6.96%
Repay debt: 16.71%
Working capital: 25.06%
Listing expenses: 6.96%
Conclusion
Good thing is:
1. Fundamentally the company is healthy, still have good profit with EPS RM0.0547.
2. Debt ratio still in healthy level.
3. Having shariah status, which mean trust fund like Islamic unit trust, Tabung Haji are allow to buy this company shares.
4. Founder still having big portion of sharesholding in hand.
The bad things:
1. 16.71% IPO fund use to pay debt, still can consider not soo over.
2. Order book finish soon in 2015 and left one project in 2016.
3. Market is mainly in Malaysia.
Overall, is a normal IPO. The is some risk on the company, the natural of this business based on project to project & there are no long-term contracts for this business.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 30/06/15
Close to apply: 07/07/15
Listing date: 27/07/15
Fundamental
Market: Main Market
Price: RM0.57
EPS: RM0.0547
P/E: 10.42x
NTA after IPO: RM0.31
Debt ratio: 0.52 (Debt: RM179 mil, Asset: RM342 mil)
Dividend policy: recommed minimum 20% dividend
Shariah Status: Yes
Business
Piling & foundation works, construction, civil works, prefabricated building system.
Order book
Business is more to project-by-project secured.
bal in 2015: RM279mil
2016: RM29 mil
Main Revenue
Piling & Foundation: 54.75%
Brige Construction: 25.41%
Building Construction: 16.85%
Manufacture & Instalation of Prefabricated buiding system: 2.99%
Principal Market
KL: 52.36%
Selangor: 38.83%
Others: 8.81%
Founder
Director- Dato'Ang Cheng Siong: 65% (indirect)
Director- Dato' Ir Dr Khoo Ping Sen:65% (indirect)
Director- Siew Mun Lout:-
Key Management: Yap Yoon Fatt:-
Use of fund
Purchase construstion equipment: 44.31%
Purchase Machinery & equipment for manufacturing: 6.96%
Repay debt: 16.71%
Working capital: 25.06%
Listing expenses: 6.96%
Conclusion
Good thing is:
1. Fundamentally the company is healthy, still have good profit with EPS RM0.0547.
2. Debt ratio still in healthy level.
3. Having shariah status, which mean trust fund like Islamic unit trust, Tabung Haji are allow to buy this company shares.
4. Founder still having big portion of sharesholding in hand.
The bad things:
1. 16.71% IPO fund use to pay debt, still can consider not soo over.
2. Order book finish soon in 2015 and left one project in 2016.
3. Market is mainly in Malaysia.
Overall, is a normal IPO. The is some risk on the company, the natural of this business based on project to project & there are no long-term contracts for this business.
Monday, June 29, 2015
Sunway Constructions Group Berhad
IPO (Rating 2 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/06/2015
Close to apply: 06/07/2015
Price Determination Date: 07/07/2015
Listing date: 28/07/2015
Fundamental
Market: Main Market
Price: RM1.20
***Final retail price not yet fixed. If final price lower than RM1.20, balance will refund to bank acct of who's apply, if final retail price more than RM1.20 , there will use RM1.20 as offer price
***Not to use manual post apply, as the price might difference & refund process will be more easy & safety.
EPS: RM0.097
P/E: 12.37x
NTA after IPO: RM0.24
Debt ratio: 0.753 (Debt: RM943 mil, Asset: RM1,252 mil)
Dividend policy: Suggested minimum 35% dividend policy on profit
Casflow Statement: RM51mil@2012, RM83mil@2013, RM183mil@2014
Business
Construction
Manufacturing & sale of precast concrete product
Mechanical, electrical & plumbing services
Foundation & geotechnical engineering services
Main Revenue (2014)
Malaysia: 86.4%%
Singapore: 13.6%
Utilisation of fund
The Suncon does not issue new shares, all offer sale of shares is from shareholders shares (Mainly from Sunway Berhad).
Estimated RM478.4 mil from sale of shares will paid to original shareholders.
**No IPO fund is allocated for Sunway Constructions Group Berhad.
Director
Dato' Ir Goh Chye Koon (less than 1%)
Kwan Foh Kwai (less than 1%)
Dato' Siew Kim Lun (less than 1%)
Dato Dr. Ir Johari Bin Basri (less than 1%)
Dato' Chew Chee Kin (less than 1%)
Evan Cheah (58.6% Indirect)
Non-director
Tan Sri Jeffrey Cheah 58% (indirectly)
Conclusion
Good thing is:
1. Fundamentally the company is healthy, still have profit with EPS RM0.097 (P/E 12.37x, 2014). However still have many construction company below this P/E12.37
3. Debt ratio still healthy, but still not the very safe level.
4. Business is under control of co-founder family, the Jeffrey Cheah family.
5. Business in Main board market, which give better security in capital protection.
6. Having many Dxtx' to get more business.
7. The brand name Sunway will attract investor.
The bad things:
1. No fund raising from IPO. All fund is sell of shares & payable to original exsting Sunway Construsction Group Berhad sharesholders. Whereby, I only can estimated it does not have any extra fund from IPO to grow the company.
2. Does not have every clear future plan on business, & the purpose of separate from Sunway Berhad not very clear.
3. Net tangible asset if RM0.24, IPO RM1.20 is 5x times higher than net tangible assets.
Overall, we can see the abilities of generate income from future. However, the business if heavily depend on getting projects. I would like to suggest this is a normal IPO, not to buy as long as above RM1.00.
Compare to privatization activities, Sunway Construction Group Berhad more likely like the total opposite the privatization without fund raising & no any other changes, except shareholders change.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/06/2015
Close to apply: 06/07/2015
Price Determination Date: 07/07/2015
Listing date: 28/07/2015
Fundamental
Market: Main Market
Price: RM1.20
***Final retail price not yet fixed. If final price lower than RM1.20, balance will refund to bank acct of who's apply, if final retail price more than RM1.20 , there will use RM1.20 as offer price
***Not to use manual post apply, as the price might difference & refund process will be more easy & safety.
EPS: RM0.097
P/E: 12.37x
NTA after IPO: RM0.24
Debt ratio: 0.753 (Debt: RM943 mil, Asset: RM1,252 mil)
Dividend policy: Suggested minimum 35% dividend policy on profit
Casflow Statement: RM51mil@2012, RM83mil@2013, RM183mil@2014
Business
Construction
Manufacturing & sale of precast concrete product
Mechanical, electrical & plumbing services
Foundation & geotechnical engineering services
Main Revenue (2014)
Malaysia: 86.4%%
Singapore: 13.6%
Utilisation of fund
The Suncon does not issue new shares, all offer sale of shares is from shareholders shares (Mainly from Sunway Berhad).
Estimated RM478.4 mil from sale of shares will paid to original shareholders.
**No IPO fund is allocated for Sunway Constructions Group Berhad.
Director
Dato' Ir Goh Chye Koon (less than 1%)
Kwan Foh Kwai (less than 1%)
Dato' Siew Kim Lun (less than 1%)
Dato Dr. Ir Johari Bin Basri (less than 1%)
Dato' Chew Chee Kin (less than 1%)
Evan Cheah (58.6% Indirect)
Non-director
Tan Sri Jeffrey Cheah 58% (indirectly)
Conclusion
Good thing is:
1. Fundamentally the company is healthy, still have profit with EPS RM0.097 (P/E 12.37x, 2014). However still have many construction company below this P/E12.37
3. Debt ratio still healthy, but still not the very safe level.
4. Business is under control of co-founder family, the Jeffrey Cheah family.
5. Business in Main board market, which give better security in capital protection.
6. Having many Dxtx' to get more business.
7. The brand name Sunway will attract investor.
The bad things:
1. No fund raising from IPO. All fund is sell of shares & payable to original exsting Sunway Construsction Group Berhad sharesholders. Whereby, I only can estimated it does not have any extra fund from IPO to grow the company.
2. Does not have every clear future plan on business, & the purpose of separate from Sunway Berhad not very clear.
3. Net tangible asset if RM0.24, IPO RM1.20 is 5x times higher than net tangible assets.
Overall, we can see the abilities of generate income from future. However, the business if heavily depend on getting projects. I would like to suggest this is a normal IPO, not to buy as long as above RM1.00.
Compare to privatization activities, Sunway Construction Group Berhad more likely like the total opposite the privatization without fund raising & no any other changes, except shareholders change.
Thursday, June 11, 2015
XIN HWA HOLDING BERHAD
IPO (Rating 3.75 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 11/06/15
Close to apply: 17/06/15
Listing date: 30/06/15
Fundamental
Market: Main Market
Price: RM0.70
EPS: RM0.0875
P/E: 8x
NTA after IPO: RM0.61
Debt ratio: 0.36 (Debt: RM61 mil, Asset: RM171 mil)
Dividend policy: no formal dividend policy
Business
Logistics: Integrated Logistics services, land transport, warehousing, distribution.
Business operation mainly come from Joho, partial in Pulau Pinang, Selangor & N.Sembilan.
Main Revenue
Cargo transporation: 53.24%
Container haulage: 36.5%
Warehousing: 9.97%
Utilisation rate
Land transport opertation: 79.66% (no data on transport used rate for 2011-2012, but truck & Prime mover amount is increasing)
Warehousing & distribution operation: 68.44% (reduce over 4 years from 98.53%)
Principal Market
Malaysia: 90.01%
Singapore: 9.99%
Director
Ng Aik Chuan: 21.08%
Ng Yam Pin: 20.97%
Eng Peng Lam @ Ng Peng Lam: 27.95%
Use of fund
Construction of new warehouse: 17.96% (Pasir Gudang)
Expansion of fleet of vehicles: 42.93% (Truck:10 unit, Trailers:91)
Repay debt: 14.18%
Working capital: 11.65%
Listing expenses: 13.28%
Conclusion
Good thing is:
1. Fundamentally the company is healthy, still have good profit with EPS RM0.0875 (Business return 12.5%).
2. Net Asset of the company after IPO RM0.61 which near to the IPO price.
3. Debt ratio still healthy at 0.36
4. Business is under control of co-founder family, the Ng family.
5. Business in Main board market, which give better security in capital protection.
The bad things:
1. Their revenue to mainly from cargo transportaion, container haulage, & warehousing. But having very less revenue come from freight forwarding & customs brokerage (Strong freight forwarding business will increase sale getting more container).
2. The company use 14.18% IPO fund to pay debt.
3. Heavily depend on cargo transportation (Fuel increase will reduce profit margin).
4. Warehouse ultilisation rate is falling over 4 years from 98.53% to 68.44%. After complete build of Pasir Gudang warehouse might see better revenue (in term of location).
5. China-Thailand Canal project might effect it future business, but not so soon.
Overall, we can see the sincerity of the family wish to growth the business. The IPO can consider as good IPO.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 11/06/15
Close to apply: 17/06/15
Listing date: 30/06/15
Fundamental
Market: Main Market
Price: RM0.70
EPS: RM0.0875
P/E: 8x
NTA after IPO: RM0.61
Debt ratio: 0.36 (Debt: RM61 mil, Asset: RM171 mil)
Dividend policy: no formal dividend policy
Business
Logistics: Integrated Logistics services, land transport, warehousing, distribution.
Business operation mainly come from Joho, partial in Pulau Pinang, Selangor & N.Sembilan.
Main Revenue
Cargo transporation: 53.24%
Container haulage: 36.5%
Warehousing: 9.97%
Utilisation rate
Land transport opertation: 79.66% (no data on transport used rate for 2011-2012, but truck & Prime mover amount is increasing)
Warehousing & distribution operation: 68.44% (reduce over 4 years from 98.53%)
Principal Market
Malaysia: 90.01%
Singapore: 9.99%
Director
Ng Aik Chuan: 21.08%
Ng Yam Pin: 20.97%
Eng Peng Lam @ Ng Peng Lam: 27.95%
Use of fund
Construction of new warehouse: 17.96% (Pasir Gudang)
Expansion of fleet of vehicles: 42.93% (Truck:10 unit, Trailers:91)
Repay debt: 14.18%
Working capital: 11.65%
Listing expenses: 13.28%
Conclusion
Good thing is:
1. Fundamentally the company is healthy, still have good profit with EPS RM0.0875 (Business return 12.5%).
2. Net Asset of the company after IPO RM0.61 which near to the IPO price.
3. Debt ratio still healthy at 0.36
4. Business is under control of co-founder family, the Ng family.
5. Business in Main board market, which give better security in capital protection.
The bad things:
1. Their revenue to mainly from cargo transportaion, container haulage, & warehousing. But having very less revenue come from freight forwarding & customs brokerage (Strong freight forwarding business will increase sale getting more container).
2. The company use 14.18% IPO fund to pay debt.
3. Heavily depend on cargo transportation (Fuel increase will reduce profit margin).
4. Warehouse ultilisation rate is falling over 4 years from 98.53% to 68.44%. After complete build of Pasir Gudang warehouse might see better revenue (in term of location).
5. China-Thailand Canal project might effect it future business, but not so soon.
Overall, we can see the sincerity of the family wish to growth the business. The IPO can consider as good IPO.
Tuesday, June 9, 2015
Sedania Innovator Berhad
IPO (Rating: 4 stars out of 5)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 09/06/15
Close to apply: 18/06/15
Listing: 29/06/15
Fundamental
Market: Ace Market
Price: RM0.38
Revenue: continuing grow for 4 years (2011-2014)
EPS: RM0.04
P/E: 9.5x (2014)
NTA after IPO: RM0.16
Debt ratio: 0.017 (Debt: RM594k, Asset: RM33.5mil)
Dividend policy: no formal dividend policy
Business
mobile apps development, communication airtime sharing program, GreenBilling to businesses, & others.
Major Customer
Celcom 79.22% (contract expired 31/05/2020)
Maxis (unknow)
Robi Axiata 19.94% (Bangladesh)
Director
Datuk Noor Azrin bin Mohd Noor 50.04%
Use of fund
Capital expenditure: 20.4%
Marketing expenses: 21%
R&D expenses: 12.8%
Working capital: 34.6%
Listing expenses: 11.2%
Conclusion
Good IPO!!
The company are not IPO for pay DEBT!!This is what we want!!
Founder of company own biggest portion in the company!!
The only weakness on this IPO is ACE market, where the regulation of control the company is weak than main market.
Besides, we also need to take consider on fast changing in technology enviroment (might not so soon effect this company)
I personally give target for this IPO RM0.50 (P/E 12.5x) should be reasonable.
IPO (Rating: 4 stars out of 5)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 09/06/15
Close to apply: 18/06/15
Listing: 29/06/15
Fundamental
Market: Ace Market
Price: RM0.38
Revenue: continuing grow for 4 years (2011-2014)
EPS: RM0.04
P/E: 9.5x (2014)
NTA after IPO: RM0.16
Debt ratio: 0.017 (Debt: RM594k, Asset: RM33.5mil)
Dividend policy: no formal dividend policy
Business
mobile apps development, communication airtime sharing program, GreenBilling to businesses, & others.
Major Customer
Celcom 79.22% (contract expired 31/05/2020)
Maxis (unknow)
Robi Axiata 19.94% (Bangladesh)
Director
Datuk Noor Azrin bin Mohd Noor 50.04%
Use of fund
Capital expenditure: 20.4%
Marketing expenses: 21%
R&D expenses: 12.8%
Working capital: 34.6%
Listing expenses: 11.2%
Conclusion
Good IPO!!
The company are not IPO for pay DEBT!!This is what we want!!
Founder of company own biggest portion in the company!!
The only weakness on this IPO is ACE market, where the regulation of control the company is weak than main market.
Besides, we also need to take consider on fast changing in technology enviroment (might not so soon effect this company)
I personally give target for this IPO RM0.50 (P/E 12.5x) should be reasonable.
Wednesday, May 20, 2015
Dolphin International Berhad
IPO (Rating: 3.5 star out of 5 star)Price: RM0.68
Overview
Involve in produces & services for palm oil machinery
Date
Open to apply: 20/05/15
Close to apply: 28/05/15
Listing: 09/06/15
Fundamental
Market: Main Market
P/E: 12.45 (EPS RM0.0546)
Net asset: RM0.36
Debt ratio: 0.71
Dividend policy: have no formal dividend policy
Director
Low Teck Yin 28.52% (co-Founder)
Hoh Yeong Cherng 28.52% (co-Founder)
Revenue
Local: 76.65%
Indonesia:22%
Others: 1.35%
Use Of IPO fund (RM31.28mil)
Renovation & extension of factory: 35.16%
Working capital: 19.44%
Set-up R&D facility: 12.79%
Pay Debt: 19.18%
Listing Expenses: 13.43%
Opinion
Is a above average IPO. Out of 5 star, I wish to rate it 3.5 star on this IPO
The business is having a tanggible business & business start from 1992 (23 years in the industry)
The fundamental is good, although the revenue does not diversify enough & most revenue come from M'sia.
The company still having its co-founder which is good.
Weakness on IPO is 12.79% use to pay debt.
All th info is for sharing purpose & based on personal opition, does not represented any advisory services.
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