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.