MST GOLF GROUP 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: 28 June 2023
Close to apply: 07 July 2023
Balloting: 11 July 2023
Listing date: 20 July 2023

Share Capital
Market cap: RM664.903mil
Total Shares: 820,868,600 shares

Industry CARG (2018-2022)
Malaysia’s import value of golf equipment: 2.5% (total growth)
Malaysia’s export value of golf equipment: 1.9% (total growth)
Singapore’s import value of golf equipment: 19.4% (total growth)
Singapore’s export value of golf equipment: 12.6% (total growth)
Industry competitors comparison (net profit%)
MST Golf Group: 9.7%
Winston’s S/B: 16.7%
RGT Technology S/B: 11.3%
Desa Golf House S/B: 8.1%
Pan-West Pte Ltd: 4.4%
Vin Sporting House S/B: 3.0%
Leonian Singapore Pte Ltd: 2.1%
Golfsmart (M) S/B: 1.0%
SKT Ventures S/B: -1.9%

Business (FYE 2022)
Retailer and wholesaler of golf equipment comprising golf clubs, golf balls and accessories and golf apparel in Malaysia and Singapore. 
Revenue by Geo (FYE2022)
Malaysia: 66.30%
Singapore: 22.96%
Others: 10.74%

Fundamental
1.Market: Main Market
2.Price: RM0.81
3.P/E: 25 (EPS 0.0325 @ FYE2022)
4.ROE(Pro Forma III): 13.32%
5.ROE: 30.34%(FYE2022), 45.42%(FYE2021), 35.78%(FYE2020), 41.85%(FYE2019)
6.Net asset: RM0.27
7.Total debt to current asset IPO:  0.689 (Debt: 150.614mil, Non-Current Asset: 159.577mil, Current asset: 218.572mil)
8.Dividend policy: 30% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 31 Dec): RM300.875 mil (Eps: 0.0325),PAT: 9.68%
2021 (FYE 31Dec): RM206.519 mil (Eps: 0.0219),PAT: 9.73%
2020 (FYE 31Dec): RM170.152 mil (Eps: 0.0157),PAT: 8.05%
2019 (FYE 31Dec): RM175.950 mil (Eps: 0.0114),PAT: 5.81%

Operating cashflow vs PBT
2022: 23.05%
2021: 27.10%
2020: 281.11%
2019: 65.88%

Major customer (2022)
Do not have any major customer contribute more than 5% of company revenue. 
***total -%

Major Sharesholders 
1. All Sportz: 52.14% (direct)
2. Ng Yap Sio: 7.11% (direct)
3. Low Kok Poh: 3.56% (direct)

Directors & Key Management Remuneration for FYE2023 
(from Revenue & other income 2022)
Total director remuneration: RM3.535mil
key management remuneration: RM1.3mil – RM1.5mil
total (max): RM5.03mil or 3.89%

Use of funds 
1. Expansion in Malaysia and Singapore: 48.42%
2. Expansion into new geographical markets: 41.32%
3. Upgrade of digital technology facilities: 2.32%
4. Working capital requirements: 2.51%
5. Listing Expenses: 5.43%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall growth rating is 3.5 point because the industry itself having low CARG. Low industry CARG mean the market itself did not growth much, hence the growth of MST need to grab the market shares from competitor (instead of all competitor enjoy of expand of industry-cake size expand bigger concept). 

*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.