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/
Monday, June 19, 2017
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/
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/
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