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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: 02 May 2024
Close to apply: 13 May 2024
Balloting: 16 May 2024
Listing date: 28 May 2024
Share Capital
Market cap: RM147.940 mil
Total Shares: 369.850 mil shares
Industry CARG
Manufacturing sales value of paints, varnishes and similar coatings ink and mastics (Malaysia), 2018 – 2023: 19%
Exports of paints and varnishes from Malaysia to Selected Countries in SEA, 2018 – 2023: 2.78%
Value of construction work done (Malaysia), 2018 – 2023: -1.91%
Manufacturing sales value (Malaysia), 2018 – 2022: 6.56%
Industry competitors comparison (net profit%)
1. SAC: 9.67%
2. Nippon Paint group of companies: 6.55%
3. Jotun Paints (Malaysia) Sdn. Bhd. (a subsidiary of Jotun A/S): 5.74%
4. Kossan Paint group of companies: 5.63%
5. SKK group of companies: 4.14%
6. Others: -4.61% to 2.02 %
Business (FYE 2023)
Involved in the development, manufacturing, distribution and sale of decorative paints and protective coatings for household and industrial applications.
Revenue by Segment
1. Manufacturing Segment: 89.33%
2. Sale and trading Segment: 7.36%
3. Others: 3.31%
Fundamental
1.Market: Ace Market
2.Price: RM0.40
3.Forecast P/E: 16.67
4.ROE(Proforma III): 8.5%
5.ROE: 12.8% (FYE2023), 14.36%(FYE2022), 20.74%(FYE2021), 17.93%(FYE2020)
6.Net asset: RM0.12
7.Total debt to current asset: 0.596 (Debt: 44.345mil, Non-Current Asset: 73.337mil, Current asset: 74.389mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Dec): RM91.091 mil (Eps: 0.0240), PAT: 9.67%
2022 (FYE 31Dec): RM79.218 mil (Eps: 0.0234), PAT: 10.87%
2021 (FYE 31Dec): RM79.766 mil (Eps: 0.0289), PAT: 13.40%
2020 (FYE 31Dec): RM71.599 mil (Eps: 0.0202), PAT: 10.39%
Major customer (2023)
1.Golden Sky: 6.89%
2.Mr Paint Shop Sdn Bhd: 6.09%
3.Best Team Marketing Sdn Bhd: 3.66%
4.Pintar Ekslusif Sdn Bhd: 3.42%
5.UA Paints & Hardware Sdn Bhd: 3.25%
***total 23.31%
1.Golden Sky: 6.89%
2.Mr Paint Shop Sdn Bhd: 6.09%
3.Best Team Marketing Sdn Bhd: 3.66%
4.Pintar Ekslusif Sdn Bhd: 3.42%
5.UA Paints & Hardware Sdn Bhd: 3.25%
***total 23.31%
Major Sharesholders
1.Goh Chye Hin: 44.5% (direct)
2.Kee Hui Lang: 7.51% (direct)
Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM0.701 mil
key management remuneration: RM0.35 mil – RM0.55 mil
total (max): RM1.251 mil or 4.17%
(from Revenue & other income 2023)
Total director remuneration: RM0.701 mil
key management remuneration: RM0.35 mil – RM0.55 mil
total (max): RM1.251 mil or 4.17%
Use of funds
1.Construction of Perak Plant: 42.78%
2.Purchase and commissioning of automated paint production system: 29.41%
3.Purchase of 250 sets of Smart Colour POS Tinting Machine: 13.37%
4.Working capital: 3.48%
5.Estimated listing expenses: 10.96%
1.Construction of Perak Plant: 42.78%
2.Purchase and commissioning of automated paint production system: 29.41%
3.Purchase of 250 sets of Smart Colour POS Tinting Machine: 13.37%
4.Working capital: 3.48%
5.Estimated listing expenses: 10.96%
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is competitive industry & the company revenue still slowing slow. The Perak plant will increase their manufacturing capacity.
*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.
