Tashin Holding Berhad

IPO Rating ( 1.75 star  out of 5.0)

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

Date
Open to apply: 20/06/2019
Close to apply: 19/07/2019
Listing date: 01/08/2019

Share Capital
Market Cap: RM mil
Total Shares: 348.991 mil shares (IPO 59.329 mil, Company Insider/Miti/Private Placement 55.489 mil)

Business
Produce slit coils & steel sheets.
Manufacturing & trade of steel product.

Fundamental
Market: Ace Market
Price: RM0.58 (eps: RM0.0323)
P/E & ROE: PE17.96, ROE5.98%
Cash & fixed deposit after IPO: RM0.063 per shares
NA after IPO: RM0.54
Total debt to current asset after IPO: 0.34 (Debt: 46.769 mil, Non-Current Asset: 98.649 mil, Current asset: 136.872 mil)
Dividend policy: No formal dividend policy.

Financial Ratio
Trade receivable: 72 days
Trade Payable: 45 days
Inventory turnover: 130 days

Past Financial Proformance (Revenue, EPS)
2018: RM260.545 mil (eps: 0.0389)
2017: RM257.701 mil (eps: 0.0543)
2016: RM214.741 mil (eps: 0.0421)
2015: RM212.284 mil (eps: 0.0144)

Net Profit Margin
2018: 4.33%
2017: 6.10%
2016: 5.67%
2015: 1.96%

After IPO Sharesholding
Prestar: 34%
Formula Naga: 33.1%

Director & Key Managemen Remuneration for FYE2019 (from gross profit 2018)
Dato' Kalsom: RM43k
Lim Choon Teik: RM560k
Foong Kok Chuin: RM510k
Sim Puei Chun: RM33k
Khaw Chooi Kee: RM36k
Rusdy Bin Ishak: RM33k
Ir. Tan Tiong Ben: RM33k
Dato' TToh Yew Peng: RM33k
Toh Yew Seng: RM33k
Koay Kah Ee: RM33k
Total director & key management remuneration from gross profit: 5.35%

Use of fund
Land Acquisition: 20.92%
Construction of new factory: 30.08%
Manufacturing of wire mesh: 11.92%
Slitting line: 5.23%
5 Packing machines: 5.23%
Working capital: 17.32%
Listing Expenses: 9.3%

Competitors (Profit after tax margin)
Total 17 competitors with PAT margin -12.47% to 8.04%

Industry Analysis (CAGR 2015-2018, base year 2018)
Steel Comsumption: CAGR 2.16%
Steel processing in M'sia: CARG 0.55%
Steel wire & pipes: CAGR 13.3%

Conclusions
Good thing is:
1. Debt still consider at healthy level.
2. Almost all IPO use to expend business.

The bad things:
1. Listing under Ace Market.
2. PE17.96 is expensive than current Msia country PE16.5
3. ROE5.98% is consider not attractive.
4. Revenue growth average 6% per year, but add in the inflation, the revenue might consider at no growth.
5. Net profit margin is very low.
6. Director fees is over 3% from gross profit.
7. Compare to total 17 competitor, we found that no competitor in same industry able to make profit after tax over 10%.
8. The analysis in the steel industry have very little growth in since 2015.
9. No formal dividend policy.

Conclusions
Overall is a very little profit margin business. The industry itself might be the major problem. Total 17 competitors, non of it able to make profit margin over 10%.

IPO Price: RM0.58
Good time: RM0.42 (PE13)
Bad time: RM0.25 (PE8)

I-Stone Group Berhad

IPO Rating (2.0 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 21/06/2019
Close to apply: 08/07/2019
Listing date: 17/07/2019

Share Capital
Market Cap: RM195 mil
Total Shares: 1.221 bil shares (IPO 61.074 mil, Company Insider/Miti/Private Placement 305.37 mil)

Business
Manufacturing automation business machinery & distribution of hardware & software.

Geo
Msia: 78.2%
S'pore: 12.5%
Philippines: 6.8%
Others: 2.5%

Fundamental
Market: Ace Market
Price: RM0.16 (eps: RM0.0092, Prospecture is using 0.0115 which is before add in additional enlargement shares is not acceptable)
P/E & ROE: PE17.39, ROE19.5%
Cash & fixed deposit after IPO: RM0.0072 per shares
NA after IPO: RM0.05
Total debt to current asset after IPO: 0.44 (Debt: 13.716 mil, Non-Current Asset: 40.434 mil, Current asset: 30.896 mil)
Dividend policy: No formal dividend policy.

Financial Ratio
Trade receivable: 76 days
Trade Payable: 53 days
Inventory turnover: 48 days

Past Financial Proformance (Revenue, EPS)
2018: RM67.591 mil (eps: 0.0092)
2017: RM60.381 mil (eps: 0.0067)
2016: RM43.127 mil (eps: 0.0039)
2015: RM44.124 mil (eps: 0.0033)

Net Profit Margin
2018: 17.0%
2017: 14.2%
2016: 10.9%
2015: 9.3%

After IPO Sharesholding
OUE (Tee Sook Sing): 27%
Chan Kok San: 20.3%
Chin Chung Lek: 7.4%
Chan Sai Kong: 4.8%

Director & Key Managemen Remuneration for FYE2019 (from gross profit 2018)
Dato' Azman Bin Mahmood: RM64k
Tee Sook Sing: RM424k
Chan Kok San: RM385k
Chin Chung Lek: RM181k
Professor Dr. Ruzairi bin Abdul Rahim: RM51k
Chia Gek Liang: RM64k
Law Lee Yan: RM51k
Total director & key management remuneration from gross profit:5.49%

Use of fund
Process & Product Development: 10.7%
Pay Debt: 34.5%
New D&D centre: 17.4%
Capital expenditure: 13.3%
Working capital: 15.1%
Lising expenses: 9%

Competitor (PE & ROE)
AT: Loss making.
Genetec: PE9.12 ROE7.41
Greatec: PE12.47
MMSV: PE19.26 ROE11.23
PIE: PE13.5 ROE8.54
Penta: PE19.71 ROE18.46
Vitrox: PE30.23 ROE24.88

Industry Analysis (CAGR 2015-2018, base year 2018)
CAGR: 34.99%

Conclusions
Good thing is:
1. ROE19.5 is healthy.
2. Revenue is growing over 4 years.
3. Net profit margin is over 15%
4. The industry of their business is growing with CAGR 34.99% since 2015.
5. Competitor able to trade with higher PE.

The bad things:
1. No fixed Dividend policy
2. Listing in Ace market.
3. Director fees is over 3% from gross profit.
4. Use 34.5% IPO fund to pay debt.
5. Expensive then country PE16.5, the company is PE17.39 (in prospecture book is PE13.91, using ESP 0.0115 which is before add in additional enlargement shares is not acceptable).

Conclusions
Overall is a average IPO. Able to see the growth & need of the automation to replace human labor in business processing.
However investor need to aware that total add in enleargement shares is 1221.48 mil shares, but PE arriving by prospectus book is using 997.18mil shares.

IPO Price: RM0.16
Good time: RM0.175 (PE19)
Bad time: RM0.095 (PE13)

Kim Hin Joo Berhad

IPO Rating (  2.25 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 19/06/2019
Close to apply: 26/06/2019
Listing date: 08/07/2019

Share Capital
Market Cap: RM163.4 mil
Shares Issue: 133 mil shares (IPO 76 mil, Company Insider/Miti/Private Placement 57 mil)

Business
Retail & Distribution of baby, children, & maternity products.

Geo
Malaysia: 98.25%
Overseas: 1.75%

Fundamental
Market: Ace Market
Price: RM0.43 (eps: RM0.0292)
P/E & ROE: PE14.73, ROE16.43%
Cash & fixed deposit after IPO: RM0.0328 per shares
NA after IPO: RM0.18
Total debt to current asset after IPO: 0.29 (Debt: 14.38 mil, Non-Current Asset: 4.243 mil, Current asset: 48.884 mil)
Dividend policy: 40% on PAT dividend.

Financial Ratio
Trade receivable: 6.32 days
Trade Payable: 61.57 days
Inventory turnover: 240.14 days

Past Financial Proformance (Revenue, EPS)
2018: RM97.687 mil (eps: 0.0366)
2017: RM93.310 mil (eps: 0.0381)
2016: RM84.857 mil (eps: 0.0402)
2015: RM77.031 mil (eps: 0.0270)

Net Profit Margin
2018: 11.38%
2017: 12.39%
2016: 14.42%
2015: 10.65%

After IPO Sharesholding
KHI (Pang Kim Hin): 62%

Director & Key Managemen Remuneration for FYE2019 (from gross profit 2018)
Pang Kim Hin: RM60k
Pang Shu Ming: RM362k
Goh Poh Teng: RM379k
Chew Soo Lin: RM32k
Yen Se-Hua Stewart: RM30k
Kor Yann Ning: RM28k
Key Management: RM0.956mil - RM1.250mil
Total director & key management remuneration from gross profit: 4.18%

Use of fund
Business Expansion & Capital Expenditure: 61.20%
Working Capital: 27.17%
Listing Expenses: 11.63%

Competitor (PAT Profit Margin)
Asia Brands Berhad: -17.11%
Fiffy Sdn Bhd: 5.44%
Happikiddo: 3.83%
Manjaku Baby Centre 2.58%
Poney Gaments:0.29%
QQ Baby: 0.48%
Serimep: 7.48%
Twins Baby: -1.82
Toy'R'Us: 12.17%
KHJ Group: 11.38%

Industry Analysis (CAGR 2015-2018, base year 2018)
Imports of Baby product: CAGR 13.19%

Conclusions
Good thing is:
1. PE14.73 & ROE16.43% still acceptable.
2. Director fees + kay management remuration is acceptable.
3. Almost all IPO fund use to expend busines.
4. Baby product is some kind of needs products.
5. Import of baby product is increase with CAGR 13.19% per year, which the industry is increase in the demand.

The bad things:
1. Listing in Ace market.
2. Turnover inventory 240.14days.
3. Revenue is increasing over the pas 4 years, but is in a slow mode, after add in inflation, the company might not have increase in revenue.
4. Profit margin is not encourage.
5. Average competitor margin is not encourage. 

Conclusions
Overall might not a good investment as compare to others competitor, the business might not in the good profit business.

IPO Price: RM0.43
Good time: RM0.47 (PE16)
Bad time: RM0.26 (PE9)

UWC Berhad

IPO Rating ( 2.75 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 17/06/2019
Close to apply: 28/06/2019
Listing date: 10/07/2019

Share Capital
Market Cap: RM300 mil
Shares Issue: 103 mil shares (IPO 70 mil, Company Insider & placement 336 mil)

Business
Provision of percision sheet metal fabrication, value added assembly services, & percision machined components.

Geo
Msia: 50.9%
S'pore: 40.5%
USA:2.5%
China:2.8%
France: 2.0%
Others: 1.3%

Fundamental
Market: Main Market
Price: RM0.82 (eps: RM0.063)
P/E & ROE: PE13, ROE20.2%
Cash & fixed deposit after IPO: RM0.142 per shares
NA after IPO: RM0.229
Total debt to current asset after IPO: 1.58 (Debt: 64.482 mil, Non-Current Asset: 23.86 mil, Current asset: 40.622 mil)
Dividend policy: 20% on PAT dividend.

Financial Ratio
Trade receivable: 88 days
Trade Payable: 60 days

Past Financial Proformance (Revenue, EPS)
2018: RM136.495 mil (eps: 0.063)
2017: RM92.158 mil (eps: 0.0032)
2016: RM76.311 mil (eps: 0.023)

Net Profit Margin
2018: 22.9%
2017: 16.1%
2016: 25.4%

After IPO Sharesholding
UMC Capital (Ng Chai Eng & Lau Chee Kheong) : 52.6%

Director Remuneration for FYE2019 (from gross profit 2018)
Dato' Ng Chai Eng: RM971k
Lau Chee Kheong: RM971k
Dato' Wan Hashim Bon Wan Jusoh: RM58k
F'ng Meow Cheng: RM29k
Lio Chee Yeong: RM29k
Total director remuneration from gross profit: 4.8%

Use of fund
Purchase of new machines & equipment: 56%
Repayment debt: 31.3%
Working capital: 5%
Listing expenses: 7.7%

Competitor (PAT Profit Margin)
Frencken: 8.1%
Kobay Technology: 6.2%
Alpha: 10.1%
UMC: 17%

Industry Analysis (CAGR 2015-2018, base year 2018)
CAGR of industry 6.9%

Machinery Utilisation
Oversall Utilisation: 85%

Conclusion
Good thing is:
1. PE13 & ROE20 is healthy.
2. Half revenue is from foreign site, at least not too depend on local revenue.
3. Revenue & EPS increase over 3 years.
4. Net profit margin have around 20%.
5. The needs of the industry product still continue growing CARG 6.9%

The bad things:
1. Debt is too high compare to their current asset.
2. Director fees over 3% of gross revenue.
3. IPO funds 31.3% use for pay debt.

Conclusions
Overall the business is growing. Pricing at fair level.

IPO Price: RM0.82
Good time: RM1.00 (PE16)
Bad time: RM0.57 (PE9)

Mestron Holdings Berhad

IPO Rating ( 2.00 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 23/05/2019
Close to apply: 03/06/2019
Listing date: 18/06/2019

Share Capital
Market Cap: RM126.4 mil
Shares Issue to sell: 237 mil shares (IPO 39.5 mil, Company Insider & placement 197.5 mil)

Business
Manufacturer of steel poles (street light, traffic light, Camera Pole, & others)

Geo
Msia: 92.7%
Australia: 1.8%
Singapore: 1%
Korea: 3.6%
Others: 0.9%

Fundamental
Market: Ace Market
Price: RM0.16 (eps: RM0.0118)
P/E & ROE: PE13.6, ROE15%
Cash & fixed deposit after IPO: RM0.0115 per shares
NA after IPO: RM0.07
Total debt to current asset after IPO: 0.61 (Debt: 27.235 mil, Non-Current Asset: 37.490 mil, Current asset: 43.938 mil)
Dividend policy: No fixed dividend policy.

Financial Ratio
Trade receivable: 108 days (Ave over 4yrs)
Trade Payable: 89 days (Ave over 4 yrs)

Past Financial Proformance (Revenue, EPS)
2018: RM63.680 mil (eps: 0.0118)
2017: RM60.747 mil (eps: 0.0108)
2016: RM44.374 mil (eps: 0.0067)
2015: RM40.540 mil (eps: 0.0028)

Net Profit Margin
2018: 14.6%
2017: 14.1%
2016: 11.9%
2015: 5.4%

After IPO Sharesholding
Por Teong Eng: 35%
Loon Chin Seng: 35%

Director Remuneration for FYE2019 (from gross profit 2018)
Tajul Arifin Bin Mohd Tahir: RM60k
Por Teong Eng: RM600k
Loon Chin Seng: RM600k
Leong Peng Phooi: RM36k
Phang Sze Fui: RM78k
Total director remuneration from gross profit: 6.5%

Use of fund
Expansion of Manufacturing Facility, Machines & Equipment: 51.4%
Working Capital: 20.5%
Repayment Debt: 15.8%
Listing Expenses: 12.3%

Competitor (Gross Profit Margin)
Decor Pole S/B: 7.3%
Lysaght Industries S/B: 29.8%
Oversea Deco Industries S/B:18%
Perfect Pole S/B: 41.1%
Mestron Group:28.9%

Industry Analysis (CAGR 2015-2018, base year 2018)
CAGR: 13.5%

Conclusion
Good thing is:
1. PE13.6 & ROE15% is healthy.
2. Debt ratio still healthy.
3. Revenue is increasing since 2015.

The bad things:
1. Business too focus in Malaysia.
2. Listing in Ace market.
3. No fixed dividend policy.
4. Director fees is more than 3% of gross profit.
5. Use 15.8% IPO fund to pay debt.
6. Competitor have better profit margin.
7. Change of new government might effect the new gross profit margin in coming years.

Conclusions
Overall is a normal IPO. Is better to wait another few quarters result to check on the earning to judge the investment opportunities.

IPO Price: RM0.16
Good time: RM0.185 (PE16)
Bad time: RM0.100 (PE9)

HPMT Holdings Berhad

IPO Rating ( 3.25 stars out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 17/05/2019
Close to apply: 29/05/2019
Listing date: 12/06/2019

Share Capital
Market Cap: RM183.953 mil
Shares Issue to sell:  116.615 mil shares (IPO 16.426 mil, Company Insider & placement 100.189 mil)

Business
Manufacturing cutting tools (Drilling, milling, engireering needs cutting tools), trading on others brand cutting tools, & Coating.

Geo
Local: 19.9%
Europe: 50.7%
Asia: 28.9%
Others: 0.5%

Fundamental
Market: Main Market
Price: RM0.56 (eps: RM0.0372)
P/E & ROE: PE15, ROE12.17%
Cash & fixed deposit after IPO: RM0.054 per shares
NA after IPO: RM0.34
Total debt to current asset after IPO: 0.968 (Debt: 59.947 mil, Non-Current Asset: 111.018 mil, Current asset: 61.925 mil)
Dividend policy: Board suggestion at 30% dividend policy.

Financial Ratio
Trade receivable: 77 days (Ave over 4yrs)
Trade Payable: 22 days (Ave over 4 yrs)

Past Financial Proformance (Revenue, EPS)
2018: RM85.296 mil (eps: 0.0483)
2017: RM85.152 mil (eps: 0.0587)
2016: RM75.162 mil (eps: 0.0497)
2015: RM68.876 mil (eps: 0.0420)

Net Profit Margin
2018: 16.1%
2017: 17.5%
2016: 17.5%
2015: 16.5%

After IPO Sharesholding
Ku He @ Khoo Yee Her: 62.6%
Khoo Seng Giap: 0.1%
Tan Kim Chuan: 0.1%
Dato'Khoo Ah Chye: 0.1%

Director Remuneration for FYE2019 (from gross profit 2018)
Ku He @ Khoo Yee Her: RM1.008 mil
Khoo Seng Giap: RM0.5001 mil
Tan Kim Chuan: RM0.3939 mil
Dato'Khoo Ah Chye: RM38.5k
Peter Ho Kok Wai: RM46.5k
Chua Put Moy: RM41.5k
Lee Ee Sian: RM44.5k
Oei Kok Eong: RM41.5k
Total director remuneration from gross profit: 5.6%

Use of fund
Purchase of new machineries & equipment: 80.3%
Working Capital: 6.9%
Listing Expenses: 12.8%

Competitor PE & ROE
Halcyon Technology (Thailand): PE5.34, ROE16.83
NS Tool (Japan): PE13.65, ROE15.48
Msia competitors (non-listed) Revenue: RM5mil-RM11.9mil

Industry Analysis (CAGR 2019-2023, base year 2018)
Cutting tools Market size: CAGR 3.8%

Conclusion
Good thing is:
1. PE15 is acceptable.
2. Market network is diversified.
3. Have clear dividend policy.
4. Revenue is increasing over past 4 years.
5. Net prfoti margin above 15%.
6. Almost all IPO funds use to expand business (except listing expenses).
7. The company plan to increase monthly production 43.5% by end of FYE 2021.

The bad things:
1. Director remuneration over 3% gross profit.
2. ROE12.17% less than 15%.
3. The industry CAGR only 3.8%
4. Competitor have better PE & ROE.

Conclusions
Overall is a good IPO. The IPO consider fair & we saw the intention of growing the business. However, the industry involved, having a slow growing phase.
After world war II, development develop rapidly, & most building is aging. Might or might not, there is possiblilities that the industry will need some growth in futures.

IPO Price: RM0.56
Good time: RM0.665 (PE18)
Bad time: RM0.0375 (PE10)

Greatech Technology Berhad

IPO Rating ( 2.50 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 13/05/2019
Close to apply: 24/05/2019
Listing date: 13/06/2019

Share Capital
Market Cap: RM381 mil
Shares Issue to sell: 119.750 mil shares (IPO 18.780 mil, Company Insider & placement 100.97 mil)

Business
Manufacture of Automated equipment & provision of parts and services for Solar, semiconductor, & consumer electronic sectors.

Geo
Local: 10.01%
Foreign: 89.99% (Vietnam 62.68% & USA 25.37%)

Fundamental
Market: Ace Market
Price: RM0.61 (eps: RM0.0627)
P/E & ROE: PE9.73, Ave ROE over 4yrs 11.74%
Cash & fixed deposit after IPO: RM0.11 per shares
NA after IPO: RM0.22
Total debt to current asset after IPO: 0.43 (Debt: 77.358 mil, Non-Current Asset: 39.243 mil, Current asset: 178.639 mil)
Dividend policy: Does not fixed any dividend policy.

Financial Ratio
Trade receivable: 65days (Ave over 4yrs)
Trade Payable: 62days (Ave over 4 yrs)

Past Financial Proformance (Revenue, EPS)
2018: RM219.582 mil (eps: 0.0627)
2017: RM93.914 mil (eps: 0.0376)
2016: RM22.703 mil (eps: 0.0115)
2015: RM21.393 mil (eps: 0.0111)

Net Profit Margin
2018: 14.45%
2017: 20.29%
2016: 25.59%
2015: 26.17%

After IPO Sharesholding
Tan Eng Kee: 74%

Director Remuneration for FYE2019 (from gross profit 2018)
Ooi Hooi Kiang: 66k
Tan Eng Kee: 698k
Khor Lean Heng: 510k
Mariamah Binti Daud: 66k
Ooi Ching Hock: 66k
Total director remuneration from gross profit: 3.1%

Use of fund
Business Expansion: 24.64%
Capital Expenditure: 6.85%
R&D expenditure: 6.85%
Working Capital: 50.03%
Repayment Debt: 6.16%
Lisitng Expenses: 5.47%

Competitor PE & ROE
Penta: PE22.28, ROE16
Vitrox: PE30.45, ROE24.88
Sam: PE14.18, ROE14.61
Mi: PE21.11, ROE13.42
Genetec: PE7.09, ROE11.38
Elsolf: PE14.29, ROE35.53

Industry Analysis (Asean 2012-2018)
Global Solar Cell & Solar Module Production CAGR:27.4% & 27.4%
Global Sales Semiconductor CAGR: 8.7%
Consumer Electronic CAGR: 6.1%

Conclusion
Good thing is:
1. PE9.73 still below PE10
2. Revenue is growing past 4 year.
3. Director fees around 3%
4. They are in the sunrise industry.
5. Business having 89.99% is export. The strong USD will benefit the company.

The bad things:
1. Average ROE11.74% (Below ROE15% level), their competitor ROE is higher.
2. IPO fund 6.16% use to pay debt.
3. IPO in the ACE market.
4. Effected by current trade war (might be opportunities & also might not).

Conclusions
Overall is a above average IPO. The most of the funds is use for expand the business.
Demand of their product is increasing every years.

IPO Price: RM0.61
Good time: RM0.94 (PE13)
Bad time: RM0.43 (PE7)