TECHSTORE BERHAD

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

Open to apply: 22/01/2025
Close to apply: 04/02/2025
Balloting: 06/02/2025
Listing date: 18/02/2025

Share Capital     
Market cap: RM100 mil
Total Shares:  500 mil shares
1st day listing tradable shares: 150.156 mil shares

Industry CARG    
Historical Market Size (Revenue) and Growth Forecast for the Enterprise IT Services Industry in Malaysia. i: 2021-2023: 4.45%
Ii: 2024e-2028e (base year 2023): 5.60%  
Industry competitors comparison (net profit%)
1. Techstore: 12.4%
2. EV-Dynamic Sdn Bhd: 55.7%
3. Datasonic Group Berhad: 25%
4. GoHub Capital Berhad: 16.1%
5. Infomina Berhad: 14.7%
6. Iris Corporation Berhad: 8.7%
7. Others: losses to 5.0%

Business (FPE 2024)
Provision of enterprise IT services, primarily involving the IT security and automation solutions to support to customers’ operations.
Revenue by business segment
1. Design and implementation services: 77.9%
2.Maintenance and support services: 22.1%
Revenue by country
1. Malaysia: 98.9%
2. Singapore: 1.1%
Revenue by customer type
1. Government: 26.6%
2. Government-linked companies: 42.9%
3. Private companies: 30.5%

Fundamental     
1.Market: Ace Market
2.Price: RM0.20
3.Forecast P/E: 13
4.ROE(Pro forma IV):  8.49%
5.ROE:  13.94% (FPE2024), 24.08%(FYE2023), 29.62%(FYE2022),  38.78%(FYE2021)
6.Net asset: RM0.11
7.Total debt to current asset: 0.78 (Debt: 65.375mil, Non-Current Asset: 39.146 mil, Current asset: 83.589mil)
8.Dividend policy:  Didn’t have formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)  
2024 (FPE 31Jul,7mths): RM30.120 mil (Eps: 0.0057): PAT: 9.4%
2023 (FYE 31Dec): RM62.2027 mil (Eps: 0.0154), PAT: 12.40%
2022 (FYE 31Dec): RM42.239 mil (Eps: 0.0144), PAT: 17.10%
2021 (FYE 31Dec): RM29.382 mil (Eps: 0.0135), PAT: 23.0%

Order Book    
1. 2025: 53.6 mil
2. 2026: 30.8 mil
3. 2027: 9.8 mil
4. 2028: 9.0 mil
5. 2029: 1.5 mil 

Major customer (FPE2024)    
1. Setia Utama: 30.7%
2. Customer I: 26.6%
3. Customer J: 14.1%
4. Customer E:12.2%
5. Customer G: 6.8%
***total 90.4%

Major Sharesholders     
1. Tan Hock Lim: 59.0%  (Direct)
2. Mohd Fadzil bin Mohd Daud: 11.0% (direct)

Directors & Key Management Remuneration for FYE2024    
(from Revenue & other income 2023)
Total director remuneration: RM1.215 mil
key management remuneration: RM1.10 mil – RM1.35 mil
total (max): RM2.565mil or 17.03%

Use of funds

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