Wednesday, April 9, 2025

REACH TEN HOLDINGS 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: 09/04/2025
Close to apply: 18/04/2025
Balloting: 22/04/2025
Listing date: 02/05/2025

Share Capital    
Market cap: RM520 mil
Total Shares:  1.0 bil shares
1st day listing tradable shares: 300 mil shares

Industry CARG   (2020-2024)   
1. Broadband subscriptions and penetration rates in Malaysia: 4.122%
2. Broadband subscriptions and penetration rates in Sarawak: 2.9016%
Industry competitors comparison (net profit%)
1. Reach Ten: 28.2%
2. Sacofa Sdn Bhd: 33.4%
3. Redtone Digital Berhad: 17.6%
4. Bornoe Restu Sdn Bhd: 11.3%
5. Tune talk Sdn Bhd: 9.6%
6. Others: losses to 6%

Business (FPE 2024)   
1. Provision of satellite-based communication networks and services
2. Provision of fibre optic communication networks and services
3. Provision of telecommunications infrastructure services and managed services.
Business Segments
1. Provision of satellite-based communication networks and services: 88.72%
2. Provision of fibre optic communication networks and services: 8.47%
3. Provision of telecommunications infrastructure and managed services: 2.81%
Revenue by Geo
1. Sarawak: 99.37%
2. Sabah: 0.14%
3. Peninsular Malaysia: 0.49%
Nature of revenue
1. Recurring: 93.11%
2. One-off Project based: 6.89%

Fundamental   
1.Market: Main Market
2.Price: RM0.52
3.Forecast P/E: 10.13
4.ROE(Pro forma): 40%
5.ROE: 80.56% (FPE2024) , 85.55%(FYE2023),  86.35%(FYE2022), 63.56%(FYE2021)
6.Net asset: 0.20
7.Total debt to current asset: 0.20 (Debt: 44.220mil, Non-Current Asset: 23.444mil, Current asset: 216.721mil)
8.Dividend policy: 30% PAT dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)    

2024 (FPE 31Oct, 10mths): RM153.112 mil (Eps: 0.0654), PAT: 42.69%
2023 (FYE 31Dec): RM182.255 mil (Eps: 0.0513), PAT: 28.16%
2022 (FYE 31Dec): RM174.689 mil (Eps: 0.0438), PAT: 25.05%
2021 (FYE 31Dec): RM86.011 mil (Eps: 0.0088), PAT: 10.28%

Order Book LPD (as 10 March 2025)  
2025 : 84.662 mil
2026 : 68.732 mil
2027: 17.924 mil

Major customer (FPE 2024)   
1. Customer C: 55.07%
2. Customer A: 25.19%
3. SDEC: 7.71%
4. MEASAT Communication Systems Sdn Bhd: 1.33%
5. Impact Business Solutions Sdn Bhd: 1.15%
***total 90.46%

Major Sharesholders  
1. Chin Yu Lay, aged 50 : 17.66% (direct)
2. Lu Pak Lim, aged 69 : 14.66% (direct)
3. Eddryson, aged 27 : 15.04% (direct)
4. Wong Kiing Ting, aged 70: 12.90% (direct)

Directors & Key Management Remuneration for FYE2024 
(from Revenue & other income 2023)

Total director remuneration: RM0.908 mil
key management remuneration: RM0.70 mil – RM0.95 mil
total (max): RM1.858 mil or 2.2%

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 high 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.