TT VISION HOLDINGS BERHAD

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***Important***Blogger is not wrote any recommendation & suggestion. All is personal
opinion and reader should take their own risk in investment decision.

Open to apply: 29/12/2022
Close to apply: 06/01/2023
Balloting: 10/01/2023
Listing date: 18/01/2023

Share Capital
Market cap: RM159.12mil
Total Shares: 468mil shares

Industry CARG (2017-2021)
Global semiconductor sales CAGR: 7.8%
Global optoelectronic sales: 5.7%
Global solar cell and module production: 23.2%
Global semiconductor manufacturing equipment sales: 16%
Industry competitors comparison (net profit%)
TTVHB: 17.6% (PE15.19)
Vitrox: 24.9% (PE36.44)
Penta: 22.7% (PE39.33)
Mi: 16% (PE18)
Genetec: 26% (PE21.69)
AT: -163.7% (PE-0.59)
Aimflex: 6.2% (PE15.15)
Visdynamics: 20.1% (PE9.71)
MMSV: 21.7% (PE13.3)
QES: 14.5% (PE20.87)

Business (FYE 2021)
Development and manufacturing of machine vision equipment and provision of related products and services.
(Use of product: optoelectronics, solar cells, discrete components and ICs, as well as used in vision guided robotic equipment)
Revenue by Geo
Malaysia: 24.42%
China: 73.45%
Others: 2.13%

Fundamental
1.Market: Ace Market
2.Price: RM0.34
3.P/E: 15.19 @ RM0.0224
4.ROE(Pro Forma III): 12.45%
5.ROE: 17.99%(FYE2022), 15.88%(FYE2021), 41.05%(FYE2020), -10.11%(FYE2019)
6.Net asset: RM0.18
7.Total debt to current asset after IPO: 0.32 (Debt: 23.244mil, Non-Current Asset: 35.224mil, Current asset: 72.111mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE 30Jun, 6mths): RM27.358 mil (Eps: 0.0112),PAT: 19.00%
2021 (FYE 31Dec): RM47.264 mil (Eps: 0.0180),PAT: 17.64%
2020 (FYE 31Dec): RM24.927 mil (Eps: 0.0039),PAT: 6.08%
2019 (FYE 31Dec): RM20.660 mil (Eps: -0.0092),PAT: -20.91%
***EPS here used cal based on 468mil shares (prospecture book use 385mil shares, pg15)

Operating cashflow vs PBT
2022: -15.73%
2021: 27.6%
2020: 271%
2019: -92.37%

Major customer (2022)
1. Shenzhen Brightsemi Technology Co., Ltd./China: 43.1%
2. Customer B/China: 20.52%
3. Dominant Opto / Malaysia: 13.76%
4. Shanghai Xingyin Electronic Technology Co. Ltd./China: 5.56%
5. Customer group A/ China and Malaysia: 5.55%
***total 88.49%

Major Sharesholders
Goon Koon Yin: 21.51% (direct)
Wong Yih Hsow: 21.51% (direct)
Jennie Tan Yen-Li: 2.48% (direct)
Tan Oon Pheng: 2.48% (direct)

MTDC (Khazanah wholly-owned subsidairy): 23.47% (direct)

Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM1.522mil
key management remuneration: RM0.904mil - RM1.10mil
total (max): RM2.622mil or 13.32%

Use of funds
1. Repayment of bank borrowings: 20.88%
2. R&D expenditure: 27.85%
3. Marketing activities: 2.96%
4. Working capital requirements: 37.17%
5. Listing Expenses: 11.14%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is a sunrise industry IPO. However semicond industry is a cyclical industry, current situation is semicond turning into oversupply, the industry will get back to better after oversupply over turn into supply shortage. 

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter
result release. Reader take their own risk & should do own homework to follow up every quarter
result to adjust forecast of fundamental value of the company.