TOPMIX 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 Mar 2024
Close to apply: 04 Apr 2024
Balloting: 08 Apr 2024
Listing date: 23 Apr 2024

Share Capital
Market cap: RM122.095 mil
Total Shares: 393.856 mil shares

Industry CARG
The surface decorative products market in Malaysiaa: 4.806%
Industry competitors comparison (net profit%)
1. Topmix: 13%
2. Polytec Laminates Sdn Bhd: 18.7%
3. Maica Corporation Sdn Bhd: 18.0%
4. Shimlen Sdn Bhd: 15.3%
4. ICA Innovation Sdn Bhd: 14.4%
5. Others: 0.4% to  13.2%% 

Business (FPE 2023) 
Marketing and sales of our own brands of surface decorative products. Also undertake the design of surface decorative products internally as well as in collaboration with third-party décor paper suppliers.
Product Revenue Segment 
1. HPL Product: 94.13%
2. Other surface decorative products: 5.33%
3. Kitchen and wardrobe accessories: 0.54%
***HPL : High pressure laminate (e.g. the surface layer of the compress wood)

Fundamental 
1. Market: Ace Market
2. Price: RM0.31
3. Forecast P/E: 15.88 (Forecass, EPS RM0.019525)
   *we disagree to follow Prospectus book pg 22 suggestion PE.
4. ROE(FPE2023):  12.77%
5. ROE: 28.33%(FYE2022), 20.48%(FYE2021), 13.34%(FYE2020)
6. Net asset: 0.15
7. Total debt to current asset: 0.5576  (Debt: 32.173mil, Non-Current Asset: 32.487mil, Current asset: 57.699mil)
8. Dividend policy: didn’t have formal dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)  
2023 (FPE 30Sep): RM51.037 mil (Eps: 0.0141), PAT: 10.88%
2022 (FYE 31Dec): RM65.790 mil (Eps: 0.0217), PAT: 12.96%
2021 (FYE 31Dec): RM38.595 mil (Eps: 0.0112), PAT: 11.45%
2020 (FYE 31Dec): RM27.521 mil (Eps: 0.0060), PAT: 8.58%

Major customer (FPE 2023) 
1. Kai Cheong Hardware Trading Sdn Bhd: 8.90%
2. JBR Hardware & Trading Sdn Bhd: 6.50%
3. Ekia Furniture Accessories Sdn Bhd: 4.48%
4. Bao Leng Wood Veneer Plywood Sdn Bhd: 2.97%
5. Daiyon Marketing Sdn Bhd: 2.88%
***total 25.73%

Major Sharesholders  
1. Teo Quek Siang: 62.36% (indirect)
2. Tan Lee Hong: 66.64% (indirect)
3. J and T Resources: 55% (direct)

Directors & Key Management Remuneration for FYE2024 
(from Revenue & other income 2022)
Total director remuneration: RM1.776 mil
key management remuneration: RM0.65 mil – RM0.80 mil
total (max): RM2.576 mil or 10.969%

Use of funds 
1. Expansion into assembly of melamine faced chipboard (MFC) products: 20.74%
2. Business expansion, marketing and sales: 23.32%
3. General working capital: 44.24%
4. Estimated listing expenses: 11.70%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is high risk investment, and also come with grow opportunities. 

*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.