RADIUM DEVELOPMENT 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: 27/04/2023
Close to apply: 16/05/2023
Balloting: 19/05/2023
Listing date: 31/05/2023

Share Capital
Market cap: RM1.734 bil
Total Shares: 3.468 bil shares

Industry CARG (2019-2022)

Value of high-rise residential property transactions: 12.03% (KL),  9.35% (Selangor)
Number of high-rise residential property transactions: 9.02% (KL), 7.78% (Selangor)
Average prices of high-rise residential property transactions: 2.87%(KL), 1.72% (Selangor)
Total supply of high-rise residential properties: 595,317 (KL), 637.227 (Selangor)
Number of overhang high-rise residential units: 9,333 (KL),  5,650 (Selangor)
Industry competitors comparison
Radium Group: 17.06
IJM Corporation Berhad: PE42.16
Sunway Berhad: PE11.59
Mah Sing: PE8.16
WCT Holding Berhad: PE5.14
UEM Sunrise: PE15.71
UOADEV: PE19.39
Maxim Global Berhad: PE7.34
Binastra Land Sdn Bhd: nil
SkyWorld Development Sdn Bhd: nil
 
Business
Property developer
1. development of high-rise residential properties (mainly in KL)
2. Affordable housing. 

Fundamental
1.Market: Main Market
2.Price: RM0.50 
3.Forecast P/E:  17.06 @ RM0.0293
4.ROE(Pro Forma III):  11.39
5.ROE:  29.49%(FYE2021), 38.24%(FYE2020), 84.19%(FYE2019)
6.Net asset: RM0.23
7.Total debt to current asset IPO: 01967  (Debt: 193.797mil, Non-Current Asset:  17.001mil, Current asset: 985.056mil)
8.Dividend policy: 30% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE31oct): RM302.011 mil (Eps: 0.0258), PAT: 30.49%
2021 (FYE 31Dec): RM563.691 mil (Eps: 0.0293),PAT: 19.33%
2020 (FYE 31Dec): RM588.067 mil (Eps: 0.0253),PAT: 16.83%
2019 (FYE 31Dec): RM472.806 mil (Eps: 0.0369),PAT: 28.47%

Operating cashflow vs PBT
FPE2022: 1.01%
2021: 107.06%
2020: 31.19%
2019: 25.01%

Major customer (2021)
Did not have major customer (customer is individual buyer or companies buy on one unit or small number of unit). 

Major Sharesholders

1.Gan Kah Siong: 15.74% (direct), 37.49% (indirect)

2.Gan Tiong Kian: 7.5% (direct), 2.25% (indirect)

3.Gan Kok Peng: 7.5% (direct)

4.Cengal 2020 Sdn Bhd: 37.49% (direct)

5.Java Citarasa Sdn Bhd: 2.25%

6.Tambun Team Sdn Bhd: 1.12%

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)

Total director remuneration: RM2.723mil

key management remuneration: RM1.1mil – RM1.3mil

total (max): RM 4.023mil or  2.26%

Use of funds

1.Acquisition of landbank and/or development expenditure: 39.4%

2.Repayment of bank borrowings: 21.63%

3.Hotel construction: 25.18%

4.Working capital: 9.18%

5.Estimated listing expenses: 4.61%

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

Overall the industry itself is expected not going to have high growth within 1-3 years. Is consider an overvalued IPO. 

*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.