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Open to apply: 15/01/2025
Close to apply: 23/01/2025
Balloting: 27/01/2025
Listing date: 10/02/2025
Close to apply: 23/01/2025
Balloting: 27/01/2025
Listing date: 10/02/2025
Share Capital
Market cap: RM216 mil
Total Shares: 600 mil shares
1st day listing tradable shares: 168.424 mil shares
Industry CARG
1. Apparent consumption of total steel products (Sabah and Sarawak), 2019 – 2023: -6.09%
2. Apparent consumption of hot-dipped galvanised sheets, Zn-Al sheets and strips, and colour coated sheets and strips (Sabah and Sarawak), 2019 – 2023: -2.28%
3. Downstream steel industry size (Sabah and Sarawak), 2019 – 2023: 9.18%
4. Value of construction work done (Sabah and Sarawak), 2019 – 2023: 1.31%
Industry competitors comparison (net profit%)
1. Colform Group: 13.76%
2. Pui Nam Cheong Industries Sendirian Berhad: 22.12%
3. United G.I. Products Sdn Bhd: 10.14%
4. Cooldec Industries Sdn Bhd: 8.96%
5. JCH Steel (M) Sdn Bhd: 7.32%
6. IMetal (M) Sdn Bhd: 6.75%
7. Others: losses to 5.24%
Business (FPE 2024)
Manufacturing, processing and trading of steel products.
Business Segment by revenue
1. Manufacturing of downstream steel products and processing of steel coils: 55.93%
2. Trading of other downstream steel products and building materials: 30.67%
3. Provision of supply and installation services and project management services for construction projects: 13.40%
Manufacturing, processing and trading of steel products.
Business Segment by revenue
1. Manufacturing of downstream steel products and processing of steel coils: 55.93%
2. Trading of other downstream steel products and building materials: 30.67%
3. Provision of supply and installation services and project management services for construction projects: 13.40%
Fundamental
1.Market: Ace Market
2.Price: RM0.36
3.Forecast P/E: 17.48
4.ROE(Pro forma III): 10%
5.ROE: 13.92% (FPE2024), 16.28%(FYE2023), 8.36%(FYE2022), 20.9%(FYE2021)
6.Net asset: 0.21
7.Total debt to current asset: 0.345 (Debt: 26.873mil, Non-Current Asset: 27.203mil, Current asset: 77.884mil)
8.Dividend policy: Didn’t have formal dividend policy.
9. Shariah status: Yes
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2024 (FPE 31Aug, 8 mths): RM68.987 mil (Eps: 0.0201), PAT: 18.34%
2023 (FYE 31Dec): RM92.533 mil (Eps: 0.0206), PAT: 13.76%
2022 (FYE 31Dec): RM62.641 mil (Eps: 0.0096), PAT: 12.10%
2021 (FYE 31Dec): RM85.456 mil (Eps: 0.0231), PAT: 20.51%
Order Book
1. FYE 2024: RM0.45 mil
2. FYE 2025: RM 34,146 mil
Major customer (FPE 2024)
1. SBH Kibing Group of Companies: 7.38%
2. Vestland Resources Sdn Bhd: 7.11%
3. LD Metal Roofing Sdn Bhd: 5.46%
4. CY Utama Sdn Bhd: 5.24%
5. Kang Ming Group of Companies: 3.99%
***total 29.18%
Major Sharesholders
1. Kang Ming Trading: 70.86% (direct)
2. Kang Ket Hung: 0.33% (direct), 70.86% (indirect)
3. Kang Phui Yie: 0.41% (direct), 70.86% (indirect)
Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM1.733 mil
key management remuneration: RM0.20 mil – RM0.35 mil
total (max): RM2.083 mil or 9.9%
Use of funds
Overall is high risk investment, and with mid- low possible growth industry company.
*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.