ACO Group Berhad

IPO Rating ( 1.75 out of 5.0 Stars)

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Date
Open to apply: 27/02/2020
Close to apply: 06/03/2020
Listing date: 18/03/2020

Share Capital
Market Cap: RM84 mil
Total Shares: 300mil shares (Public :15 mil, Company Insider/Miti/Private Placement: 43 mil)

Business
Distribution of electrical products and accessories.
Industrial User: 74.46%
Reseller: 25.54%

Fundamental
Market: Ace Market
Price: RM0.28 (EPS:0.0247)
P/E & ROE: PE11.34 (Prospectus book is) ROE13%
Cash & fixed deposit after IPO: RM0.05 per shares
NA after IPO: RM0.19
Total debt to current asset after IPO: 1.644 (Debt: 63.657 mil, Non-Current Asset: 38.712 mil, Current asset: 81.368mil)
Dividend policy: No fix dividend policy.

Financial Ratio
Trade receivable: 80 days
Trade Payable: 103 days
Inventory turnover: 105 days

Past Financial Proformance (Revenue, EPS)
2019 (until Nov): RM104.084 mil (EPS: 0.0237)
2019: RM134.373 mil (EPS: 0.0275)
2018: RM124.193 mil (EPS: 0.0173)
2017: RM114.509 mil (EPS: 0.0153)

Net Profit Margin
2019: 5.52%
2018: 4.03%
2017: 3.89%

After IPO Sharesholding
Ir. Tang Pee Tee @ Tan Chang Kim: 62.79%
Jin Siew Yen: 7.85%
Tan Yushan: 7.85%

Directors Remuneration for FYE2021 (from gross profit 2019)
Ir.Tang Pee Tee: RM0.502 mil
Tan Yushan: RM0.437 mil
Chai Poh Choo: RM0.218 mil
Yap Koon Roy: RM68k
Dr.Tee Chee Ghee: RM68k
Ir. Dr.Ng Kok Chiang: RM56k
Total director remuneration from gross profit: RM1.349 mil or 6.07%

Key Management Remuration  for FYE2021 (from gross profit 2019)
Ooi Gin Hui: RM250k-300k
Chong Su Yee: RM150k-200k
Lim Lee Hua: RM150k-200k
Low Swee Ching: RM150k-200k
Foong Kah Hong: RM150k-200k
key management remuneration from gross profit: RM0.85mil-RM1.1 mil or 3.83%-4.95%

Use of fund
New Sales Outlet: RM4.2 mil (25.86%)
New head office & distribution in Johor: RM2.5 mil (15.39%)
Purchase new trucks & upgrade IT system: RM2 mil (12.32%)
Working Capital: RM4.24 mil (26.11%)
Listing expenses: RM3.3 mil (20.32%)

Industry CAGR%
Cables & wires CAGR: 0.4% (2015-2019)
Electrical Distribution, Protection, & Control Devices: 16.5% (2015-2019, *2019 drop -5.8%)
Lighting Equipment: -0.6% (2015-2019)

Conclusions
Good thing is:
1. PE11.34 & ROE13% is reasonable.
2. Set up new sales outlet & office will impove sales but will not have fast impact on revenue.

The bad things:
1. Debt to currnet asset ratio is high.
2. No fix dividend policy.
3. Revenue grwoing around 8% per year, but after deduct inflation will have only little improvement.
3. Net profit margin is low than 10%.
4. Director fee is expensive.
5. CAGR% of their industry grow rate is not at healthy level.
6. Listing expenses 20.32% is too expensive.
7. Doesn't explain more on how to improve business line with online sales, because business should not too depend on normal distribution method.

Conclusions
Is not a attractive IPO. Unable to expect high grow in the company revenue in 1-2 year.

IPO Price: RM0.28
Good time: RM0.32 (PE13)
Bad time: RM0.19 (PE8)

*Valuation only valid until new quarter result release. Reader should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.

Innature Berhad

IPO Rating (2.25 out of 5.0 Stars)
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Date
Open to apply: 29/01/2020
Close to apply: 06/02/2020
Listing date: 20/02/2020

Share Capital
Market Cap: RM480 mil
Total Shares: 705.881mil shares (Public Ballting: 16.1315 mil, Company Insider/Miti/Private Placement: 161.142 mil)

Business
The group hold The Body Shop franchises (beauty product) and operate TBS point-of-sale in Malaysia, Vietnam, & Combodia.

Geo
M'sia: 85.3%
Vietnam: 14.7%

Fundamental
Market: Main Market
Price: RM0.68 (9mth eps: RM0.0352)
*if final retail price is lower the RM0.68, difference will refund to applicants.
P/E & ROE: PE13.3 (Prospectus book is) ROE24%
Cash & fixed deposit after IPO: RM0.0132 per shares
NA after IPO: RM0.17
Total debt to current asset after IPO: 1.175 (Debt: 60.027 mil, Non-Current Asset: 129.622 mil, Current asset: 51.074 mil)
*Intangible asset: 52.973 mil
Dividend policy: Suggest 30% dividend policy profit after tax.

Financial Ratio
Trade receivable: 4.65 days
Trade Payable: 63.37 days
Inventory turnover: 191.84 days

Past Financial Proformance (Revenue, EPS)
2019 (9mths): RM138.195 mil (EPS: 0.0352)
2018: RM184.474 mil (EPS: 0.0722)
2017: RM171.919 mil (EPS: 0.0381)
2016: RM159.902 mil (EPS: 0.0424)

Net Profit Margin
2019: 18.0%
2018: 19.6%
2017: 17.8%
2016: 16.9%

After IPO Sharesholding
Dato' Simon (indirect): 71.89%
Datin Mina (indirect): 74.89%
Darly Foong: 3%
Molly Fong: 0.02%
Tengku Zatashah: 0.01%

Directors Remuneration for FYE2019 (from gross profit 2018)
Dato' Simon: RM60k
Datin Mina: RM0.693 mil
Darly Foong: -
Molly Fong: RM0.866 mil
Dato' Maznah: RM90k
Tengku Zatashah: RM80k
Total director remuneration from gross profit: RM1.789 mil or 1.43%

Key Management Remuration  for FYE2019 (from gross profit 2018)
Jesse Siew: 500k-550k
Mae Chan: 400k-450k
Cang Yang: 400k-450k
Meng Leong: 250k-300k
Lily-Hue Nguyen: 800k-850k
Julie Wong: 300k-350k
key management remuneration from gross profit: RM2.650-2.950 mil or 2.13-2.37 %

Use of fund
Capital Expenditure: RM34.50 mil (68.5%)
Working Capital: RM3.80 mil (7.5%)
New Business development: RM5.7 mil (11.3%)
Listing expenses: RM6.37 mil (18.75%)

Industry CAGR%
Msia 2013-2018: 6.2% CARG on CPC (Cosmestics Personal Care)
Msia 2018-2023: 8.0% (forecast)
Vietnam 2013-2018: 12%
Vietnam 2018-2023: 11.6% (forecast)
*2002-2018 income per capital CAGR urban 14.8%, CAGR rural 16.1%
*Increase of female spending power.
*Increase of internet, mobile business & e-commerce.
*Growing of acceptance of natural products.
*Vietnam CPC (cosmetics personal care) CAGR 12% 2013-2018

Conclusions
Good thing is:
1. PE13 & ROE24% is attractive.
2. Every year net profit more than 15%
3. Revenue is increasing.
4. Director remuration & management fee is acceptable.
5. Cosmetics Personal Care market/industry expanding every year.
6. IPO fund is to expand into new business NATURA (also own by The Body Shop and Aesop brands).

The bad things:
1. Total debt is higher then current asset & cash per shares after IPO is low.
2. Net asset per shares RM0.17 & the group have Intangible asset 52.9mil (equal 29.3% of total asset).
3. Liting expenses 18.75% from IPO fund is too high (market average is around 11%-13%).

Conclusions
Is a attractive business. Increase of female spending power in Msia, Vietnam, & Combodia will continue to increase the growth of Comestics Personal Care industry. The business have intention to pay out 30% PAT as dividend, it should be an attractive dividend holding counter. This IPO is now perfer, because having Intangible asset 29.3% (normal acceptable level is less than 15%).

IPO Price: RM0.68
Good time: RM0.75 (PE16)
Bad time: RM0.42 (PE9)

*Valuation only valid until new quarter result release. Reader should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.

Comment from blog

Recently this blog received some bad comment from reader (kindly refer to comment under IPO Powerwell page)

Kindly please take note that this blog is to provide long-term view on the IPO counter.

Main responsibilities from this blog is to help reader avoid unnecessary losses.

Even if there is some possibilities of the counter posted can make  some profit, but in case the possibilities of losses is bigger than profit, blog will continue to rise opinion as "avoid".

IPO that rating at this blog at 2 stars & below (As per date 31/01/2020)

1. Pwrwell IPO RM0.25 > now RM0.25 (+/-)

2. Spring IPO 0.25 > now 0.225 (loss)

3. AME IPO 1.30 > now 1.76 (Profit)

4. SDS IPO 0.23 > now 0.215 (loss)

5. Mtag IPO 0.53 > now 0.505 (loss)

6. Tashin IPO 0.58 > now 0.265 (loss)

7. I-Stone IPO 0.16 > now 0.21 (Profit)

8. Meston IPO 0.16 > now 0.115 (loss)

*successful avoid losses rate 75% (6 over 8 counter to avoid)

IPO that rating 2.01 start & above (as per date 31/01/2020)

1. Slvest IPO 0.35 > now 0.775 (profit)

2. KHJ IPO 0.43 > now 0.25 (loss)

3. UMW IPO 0.82 > now 4.08 (profit)

4. HPMT IPO 0.56 > now 0.415 (loss)

5. Greatech IPO 0.61 > now 2.57 (profit)

6. Leonghup IPO 1.10 > now 0.765 (loss)

*Successful profit rate 50% (3 over 6 counter)

**this comparison use 2019 IPO & remember 2019 is a very bad year for market. This blog are still can filter out potential IPO.

**for more comparison can try compare more years like 2018,2017,2016 & 2015.

***This blog is encourage reader to point out their comment. However it will be great if reader comment base on data and facts. 

***Base on above data & facts, we are very happy in 2019 able to help reader avoid so many unnecessary losses. 

Powerwell Holdings Berhad

IPO Rating (1.00 out of 5.0 Stars)

Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 02/01/2020
Close to apply: 10/01/2020
Listing date: 22/01/2020

Share Capital
Market Cap: RM145.138 mil
Total Shares: 580.552mil shares (Public Ball0ting: 23.8 mil, Company Insider/Miti/Private Placement: 121.655mil)

Business
Manufacturing & trading of electricity distribution product.
-LV switchboards, MV switchgears, & related product.

Fundamental
Market: Ace Market
Price: RM0.25 (7mth eps: RM0.0059)
P/E & ROE: PE17.12 (Prospectus book is PE11.96), ROE9.12%
Cash & fixed deposit after IPO: RM0.0298 per shares
NA after IPO: RM0.11
Total debt to current asset after IPO: 0.45 (Debt: 32.834 mil, Non-Current Asset: 24.885 mil, Current asset: 72.383 mil)
Dividend policy: No formal dividend policy.

Financial Ratio
Trade receivable: 168.6 days
Trade Payable: 179.3 days
Inventory turnover: 127.5 days

Past Financial Proformance (Revenue, EPS)
2019 (7mths): RM44.499 mil (EPS: 0.0059)
*order books RM52.21, billed progressively 24mths
2018: RM105.352 mil (EPS: 0.0209)
2017: RM106.393 mil (EPS: 0.0239)
2016: RM92.539 mil (EPS: 0.0146)

Net Profit Margin
2019: 7.7%
2018: 11.5%
2017: 13.0%
2016: 9.1%

After IPO Sharesholding
PW Synergy 51% (Indirect Jason Tham, Catherine Wong)
Jason Tham: 7.18%
Catherine Wong: 7.02%
Ricky Lee: 3.04%

Directors Remuneration for FYE2019 (from gross profit 2018)
Tang Yuen Kin: RM57k
Dr.Tou Teck Yong: RM51k
Selma Enolil Binti Mustapha Khalil: RM51k
Jason Tham: RM0.867 mil
Catherine Wong: RM0.706 mil
Ricky Lee: RM0.664 mil
Total director remuneration from gross profit: RM2.396 mil or 8.31%

Key Management Remuration  for FYE2019 (from gross profit 2018)
Hoh Moon Heng: 300k-500k
Thong Kok Meng: 200k-250k
Ir.Leong Yek Loong: 350k-400k
Soh Wei Wei: 300k-350k
Chai Jsung Kek: 100k-150k
key management remuneration from gross profit: RM1.250mil-1.65mil or 4.34-5.73%

Use of fund
Capital Expenditure: RM10.270 (47%)
Certification expenditure : RM3.865 mil (17.69%)
Working Capital: RM3.615 mil (16.55%)
Listing expenses: RM4.1 mil (18.75%)

Competitors (Market Player PAT)
ABB Malaysia S/B: 3.85%
Tamco Switchgear: 2.8%
Toshiba Transmission & Distribution: losses
SRS Power Enginnering: 10.34%
Sun System Engineering S/B: 3.31%
INDKOM: 21.65%
Swift Energy S/B: 5.35%
Fuji SMBE: 7.56%
MCC Techique: 1.67%
Matrix Power Network: 1.27%
Gathergates Industries (M)S/B: losses

Conclusions
Good thing is:
1. Major sharesholder hold big portion on company stock.
2. Most of the IPO fund use to business expansion.

The bad things:
1.PE17.12 is not attractive.
2.Business natural need long time to collect payment trade receivable 168days.
3.Revenue & net profit margin is dropping over 3 years.
4.Director remuration + key management remuration is 12.65%-14.04% from gross profits, this is too high.
5.Compare with many competitors, most of them unable to make net profit over 10%, this industry is likely not given high margin return.
6.Listing in Ace Market.

Conclusions
Avoid this IPO.

IPO Price: RM0.25
Good time: RM0.16 (PE11)
Bad time: RM0.115 (PE8)

Spring Art Holding Berhad

IPO Rating (1.75 out of 5.0 Stars)

Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 16/10/2019
Close to apply: 24/10/2019
Listing date: 08/11/2019

Share Capital
Market Cap: RM103.921 mil
Total Shares: 415.687 mil shares (IPO 20.784 mil, Company Insider/Miti/Private Placement 103.9216 mil)

Business
Design & Development, Manufacturing of furniture products.
India: 27.5%
Japan: 5.4%
UAE: 23.2%
Saudi Arabia: 33.1%
Canada: 2.1%
Bahrain: 7.4%
Others: 1.3%

Fundamental
Market: Ace Market
Price: RM0.25 (eps: RM0.015)
P/E & ROE: PE16.67, ROE10.58%
Cash & fixed deposit after IPO: RM0.000021 per shares
NA after IPO: RM0.14
Total debt to current asset after IPO: 0.8799 (Debt: 21.888 mil, Non-Current Asset: 55.864 mil, Current asset: 24.875 mil)
Dividend policy: No formal dividend policy.

Financial Ratio
Trade receivable: 32 days
Trade Payable: 33 days
Inventory turnover: 70 days

Operation Output Utilisation Rate
2019: 94.9%
2018: 92.5%
2017: 91.8%
2016: 93.4%
2015: 92.0%

Past Financial Proformance (Revenue, EPS)
2019 (4mths): RM18.297 mil (EPS: 0.006)
2018: RM50.382 mil (EPS: 0.015)
2017: RM48.276 mil (EPS: 0.019)
2016: RM41.287 mil (EPS: 0.018)
2015: RM36.425 mil (EPS: 0.017)

Net Profit Margin
2019: 14.1%
2018: 12.4%
2017: 16.3%
2016: 18.1%
2015: 19.8%

After IPO Sharesholding
Haji Ismail Bin Tunggak: 0.07%
Lim Kok Eng: 56%
Kwan Chian Poh: 14%
Law Sang Thiam: 0.07%
Tan Meng Loon: 0.07%

Director & Key Managemen Remuneration for FYE2019 (from gross profit 2018)
Haji Ismail Bin Tunggak: RM38K
Lim Kok Eng: RM510K
Kwan Chian Poh: RM440K
Law Sang Thiam: RM39K
Tan Meng Loon: RM38K
Total director remuneration from gross profit: RM1.065 mil or 7.4%

Key Management Remuration
Teo Miow Loo: RM200k-250k
Peter Teo Swee Chyang: RM50k-100k
Loo Soon Chuan: RM50k-100k
Lim Vivian: RM1-50k
Ahmad Mahdzir Bin Joffri: RM1-50k
key management remuneration from gross profit: RM0.300-0.550 mil or 2.09-3.82%

Use of fund
Machinery for Factory C : RM17.55 mil (71.9%)
General Working Capital: RM3.672 mil (15%)
Listing expenses: RM3.2 mil (13.1%)

Competitors (PE & ROE)
Sernkou: PE 17.54, ROE 13.03
SWSCAP: Loss making
SHH: Loss making
WEGMAS: PE 9.13, ROE 19.87
EUROSPAN: loss making
SENG YIP: ROE 11.93
TECHCENTIAL: ROE 16.24
SAMLING HOUSING: ROE 11.94
GREEN RIVER: ROE 1.45
AX FURNITURE: ROE 4.97
VALUE PLUS INDS: ROE 5.46

Industry Analysis (CAGR growth rate)
Furniture Production (Msia): 5.0%
Furniture export: 2.7%
Home & Office export: 5.5%
Furniture import: 9.9%

Conclusions
Good thing is:
1. Operation ulitisation rate is almost full.
2. Net profit margin is above 10%.
3. Almost all IPO fund use to expand business.
4. Completed of Factory C will increase production capability from 337,106 units to 674,000 units.
5. Stronger USD is benefit to the company.

The bad things:
1. Listing on Ace Market.
2. PE is around country PE (doesn't discount to country PE)
3. Debt compare to current asset is just enough to cover, turnover of company cashflow is important to the company.
4. Revenue not consider growing if add in inflation rate 6% & USDMYR rate.
5. Total Director & key management remuration is more than 10% of gross profit.
6. Furniture industry is growing at CAGR 5.0%
7. Still have some competitors is better then Spring Art.

Conclusions
Is not a discount IPO. Price is just average to market. With the increase of capability units (almost double of production), revenue should able to increase better. The Factory C will be able to start operating in July 2020. Price movement should not increase much around 6 month before the July 2020.

IPO Price: RM0.25
Good time: RM0.38 (PE16, with 60% production capability increase of revenue, should not before July 2020)
Bad time: RM0.175 (PE9, with 30% production capability increase of revenue, should not before July 2020)

Solarvest Holdings Berhad

IPO Rating ( 2.25 out of 5.0 Stars)

Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 30/09/2019
Close to apply: 11/11/2019
Listing date: 26/11/2019

Share Capital
Market Cap: RM136.718 mil
Total Shares: 390.623 mil shares (IPO 19.531 mil, Company Insider/Miti/Private Placement 79.297 mil)

Business
Design & Sale of solar energy sevices (EPCC services), Operations & Maintenance of solar energy services , and Operate Solar Plant.
EPCC Services: 94.7%
Operations & Maintenance: 0.16%
Solar PV plant: 5.12%

Fundamental
Market: Ace Market
Price: RM0.35 (eps: RM0.028)
P/E & ROE: PE12.5, ROE17.43%
Cash & fixed deposit after IPO: RM0.1145 per shares
NA after IPO: RM0.16
Total debt to current asset after IPO: 0.56 (Debt: 51.111 mil, Non-Current Asset: 23.644 mil, Current asset: 91.273 mil)
Dividend policy: No formal dividend policy.

Financial Ratio
Trade receivable: 71 days
Trade Payable: 54 days
Inventory turnover: 7 days

Past Financial Proformance (Revenue, EPS)
2019: RM112.201 mil (EPS: 0.028)
2018: RM45.069 mil (EPS: 0.021)
2017: RM39.009 mil (EPS: 0.017)
2016: RM35.286 mil (EPS: 0.011)

Net Profit Margin
2019: 9.9%
2018: 18.3%
2017: 16.7%
2016: 11.8%

After IPO Sharesholding
Lim Chin Siu: 41.1% (indirect)
Tan Chyi Boon: 41.1% (indirect)
Chiau Haw Choon 33.6% (indirect)

Director & Key Managemen Remuneration for FYE2019 (from gross profit 2018)
Dato' Che Halin: RM66k
Lim Chin Siu: RM490k
Tan Chyi Boon: RM463k
Chiau Haw Choon: RM42k
Chang Kong Foo: RM42k
Fong Shin Ni: RM42k
Total director & key management remuneration from gross profit: RM1.145mil or 5.1%

Use of fund
Business expansion: 8.7%
Capital expenditure: 11.5%
Working capital: 55.5%
Repayment Debt: 14.5%
Listing expenses: 9.8%

Competitors (PE & ROE)
Solarvest: PE12.5 ROE17.43% GP9.9%
Cypark: PE8.76, ROE10.49%
Tekseng: Loss making
Gading Kencana: loss making
Helios PV: GP23.9%
Mattan: GP1.3%
Plus Solar: GP12.4%

Industry Analysis (Forecast)
Green energy is very clearly futures trend of energy. Solar is in sunrise industry with a lot competitors.

Conclusions
Good thing is:
1. Co-founder Owners is young.
2. PE12.5 still acceptable, but a bit high in same industry & ROE17.43% is healthy.
3. Debt ratio is healthy.
4. Revenue growing for past 4 years.
5. In sunrise industry.

The bad things:
1. Net profit margin slowing down.
2. No clear dividend policy.
3. Director remuration is over 3% of gross revenue.
4. Use 14.5% IPO fund to pay debt.
5. Many competitors not making good profit in same industry.
6. Listing on Ace market.
7. Revenue highly depend on EPCC segment.

Conclusions
Green energy is a must in futures. However they are facing large competitors environment in same industry.
Will consider is an average IPO.

IPO Price: RM0.35
Good time: RM0.38 (PE13.5)
Bad time: RM0.17 (PE6)

Ame Elite Consortium Berhad

IPO Rating (2.0 out of 5.0 Stars)

Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 24/09/2019
Close to apply: 30/09/2019
Listing date: 14/10/2019

Share Capital
Market Cap: RM623 mil
Total Shares: 427.115 mil shares (IPO 17.084 mil, Company Insider/Miti/Private Placement 111.050 mil)

Business
Construction on industrial, property development, engineering, property investment.
Contract income: 80.93%
Property income: 12.72%
Rental income: 6.35%

Fundamental
Market: Mian Market
Price: RM1.30 (eps: RM0.11) will refund if Ins IPO price lower than RM1.30.
P/E & ROE: PE11.73, ROE8.38%
Cash & fixed deposit after IPO: RM0.408 per shares
NA after IPO: RM1.32
Total debt to current asset after IPO: 0.778 (Debt: 507.483 mil, Non-Current Asset: 448.306 mil, Current asset: 652.127 mil)
Dividend policy: Propose 20 PAT dividend policy.

Financial Ratio
Trade receivable: 44 days
Trade Payable: 66 days
Inventory turnover: 39 months

Past Financial Proformance (Revenue, EPS)
2019: RM339.013 mil (eps: 0.1109)
2018: RM341.320 mil (eps: 0.1662)
2017: RM298.958 mil (eps: 0.1350)
2016: RM249.243 mil (eps: 0.0763)

Net Profit Margin
2019: 15.04%
2018: 22.92%
2017: 19.10%
2016: 13.08%

After IPO Sharesholding
Tengku Azrina: 0.1%
Lee Chai: 21%
Lim Yook Kim: 21%
Kang Ah Chee: 21%
Lee Sai Boon: 7%
Lim Pei Shi: 0.1%
Chang Tian Kwang: 0.1%
Tan Lay Beng: 0.1%
Wee Soon Chit: 0.1%

Director & Key Managemen Remuneration for FYE2019 (from gross profit 2018)
Tengku Azrina: 61.8k
Lee Chai: 3.095 mil
Lim Yook Kim: 0.980 mil
Kang Ah Chee: 0.980 mil
Lee Sai Boon: 2.473 mil
Lim Pei Shi: 0.451 mil
Chang Tian Kwang: 41.2k
Tan Lay Beng: 48.1k
Wee Soon Chit: 41.2k
Total director & key management remuneration from gross profit: 9.346mil or 9.94%

Use of fund
Industrial property development & investment project: 62.2%
Working capital: 20.7%
Precast Concrete Fabrication Capacity: 8.1%
Lisitng Expenses: 9.00%

Competitors (PE)
*doesn't have very similar competitor because their business is focus on contruct industry property.
SPsetia PE16.36
Mahsing: PE7.88
Ecowrld: PE9.89
UEMS: PE28.23
Bpuri: loss making

Industry Analysis (Forecast)
2013-2018: per year
Industrial Construction: 3.3%
Precast Concrete: 11.13%
Steel Engineering: 4.8%
M&E: 20.21%
Indutry property: 4.01%

Conclusions
Good thing is:
1. PE on average level in the same industry.
2. Almost all IPO fund to use in business development.
3. Gov is focus on industry 4.0 & trade war will encourage the migrate of business to Asia countries.
4. Net profit margin is 15.04%

The bad things:
1. ROE too low.
2. Their business industry still in slow growing stage.
3. Director remuration is around 9.94% from gross revenue.
4. Revenue doesn't growth for past 2 years.

Conclusions
The business is focus on contruct industry property. The industry 4.0 might help, but believe still on the not the easy journey. Fully using the fund for business expansion is very encourage. Is only can consider a 60:40 winning ratio on this investment (40% rate of winning ratio).

IPO Price: RM1.30
Good time: RM1.21 (PE11)
Bad time: RM0.88 (PE8)