Friday, September 16, 2016

Perak Transit Berhad

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

Date
Open to apply: 15/09/2016
Close to apply: 23/09/2016
Listing date: 06/10/2016

Fundamental
Market: Ace Market
Price: RM0.15 (par value:RM0.10)
EPS: RM0.00471 for 4 months (net RM0.006 in prospectus if before new shares to public issue)
P/E: 10.61
Cash & fixed deposit after IPO: RM0.0168  per shares
NA after IPO: RM0.16
Debt ratio: 0.41 (Debt: 127.027 RM mil, Asset: RM 309.743 mil)
Dividend policy: up to 25% of net profits

Core Services
Operate bus Terminal Amanjaya, public bus services, & several petrol stations.

Source of Income (2015)
Rental: 23.54%
Kiosks: 2.4%
Fee: 13.04%
others: 0.88%
Bus operation: 29.16%
Petro station & ADO incentive: 30.98%

Past Financial Proformance (Revenue)
2013: RM64.394 mil (EPS:0.008)
2014: RM77.578 mil (0.015)
2015: RM74.123 mil (0.0214)
FPE 2015: RM22.699 mil (0.0075, for 4 mths)
FPE 2016: RM25.443 mil (0.006, for 4 mths)

After IPO Sharesholding
Dato'Sri Cheong Kong Fitt: 23.16%
Datin Sri Lim Sow Keng: 32.22%

Director Salary (from gross profit 2015)
Chang Ko Youn: 36k-100k
Cheong Kong Fitt: 350k-380k
Cheong Peak Sooi: 280-330
Wan Asmadi Bin Wan Ahmad: 36k-100k
Mohd Annas Bin Md Isa: 36k-100k
Ng Wai Luen: 36k-100k
***total director fee from gross profit 2015: 2.3%-3.37%

Use of fund
Business Expansion: 54.42% (to build terminal Kampar)
Repayment of hire purchase facilities: 5.74%
Working capital: 28.52%
Listing expenses: 11.32%

Conclusion
Good thing is:
1. Founder Cheong Kong Fitt still as director after IPO.
2. PE still attractive.
3. Debt ratio sill healthy.
4. Director fee is on market standard.
5. Public transport will always get support by gov.

The bad things:
1. ACE market counter
2. 2015 Revenue is drop.
3. Compertitor had increase the quality of services (KTMB- ETS tran)
4. Drop in diesel price 2015, but revenue is drop.
5. New car price is getting lower.

Conclusions
Price is attractive but is a risky choice for long term investment.

IPO Price at RM0.15
Good time : RM0.21 (PE15)
Bad time : RM0.09 (PE7)