Volcano Berhad

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Open to apply: 16/03/2021
Close to apply: 24/03/2021
Listing date: 06/04/2021

Share Capital
Market Cap: RM57.75mil
Total Shares: 165mil shares, Esos 49.5mil (Public apply: 8.25mil, Company Insider/Miti/Private Placement/other: 51.75mil)

Industry
Volcano: 28.82%
Nameplate Competitor (GP margin)
Chiyoda Integrco.(M) Sdn Bhd: 28.52%
Flexi Components Sdn Bhd: 39.91%
Sanwa Screen (M) Sdn Bhd: 42.43%
Plastic injection moulded Competitor (GP Margin)
Saha-Union: 13.5%
Srithai Superware: 8.64%
SNC former: 10.39%

Business
Manufacturing of nameplates, Plastic injection moulded.
M'sia: 4.17%
S'pore: 43.98%
Thailand: 44.11%
others: 7.74%

Fundamental
1.Market: Ace Market
2.Price: RM0.35 (EPS:RM0.205)
3.P/E: PE17 (based on EPS 0.205, we not accept IPO prospecture using EPS 0.0232 to cal PE)
4.ROE(Pro Forma III): 3.78%
5.ROE: 4.19%(2020), 11.18%(2019), 12.38%(2018)
6.Cash & fixed deposit after IPO: RM0.12 per shares
7.NA after IPO: RM0.408
8.Total debt to current asset after IPO: 0.1567 (Debt: 7.032mil, Non-Current Asset: 29.544mil, Current asset: 44.86mil)
9.Dividend policy: PAT 30% dividend policy.

Past Financial Performance (Revenue, Earning Per shares)
2020: RM52.527 mil (EPS:0.0205)
2019: RM55.892 mil (EPS:0.0290)
2018: RM58.649 mil (EPS:0.0412)

Net Profit Margin
2020: 28.82%
2019: 30.65%
2018: 32.35%

After IPO Sharesholding
Datuk Ch'ng Huat Seng: 16.97% 
Gan Yew Thiam: 12.73%
Dato' Wong Tze Peng: 14.85%
Yeap Guan Seng: 6.36%
Khoo Boo Wui: 12.73%

Directors & Key Management Remuneration for FYE2021 (from gross profit 2020)
Total director remuneration: RM3.104 mil or 20.5%
key management remuneration: RM0.153mil - 0.3mil or 1.01%-1.98%
total (max): RM3.404mil or 22.48%  

Use of fund
Purchase of machineries & equipment: 63.43%
Listing Expenses: 36.57%

Good thing is:
1. Purchase of 6 unit laser cutting machines will increase 33.33% nameplate production. 
2. Purchase 5 unit of platic injection moulded will increase 15.56% capacity of production. 
2. Have 30% PAT dividend policy. 
3. Net profit is above 28% for past 3 years. 

The bad things:
1. PE17 is a bit expensive. 
2. For past 3 years, ROE is dropping. 
3. Revenue did not grow for past 3 years. 
4. Director remuneration is too expensive, 20.5% from the gross profit in 2020 pay for director remuneration. 
5. Listing expenses 36.57% from IPO fund is too expensive. 

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
With the additional machineries will increase the capacity of the company. However the company still some risk like over past 3 year revenue did not grow. Please refer below chart to view the company Business expension potential & risk rating. 

*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.

Flexidynamic Holdings Berhad

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Open to apply: 09/03/2021
Close to apply: 16/03/2021
Listing date: 30/03/2021

Share Capital
Market Cap: RM56.778mil
Total Shares:  283mil shares (Public apply: 14.1 mil, Company Insider/Miti/Private Placement/other: 61.036mil)

Industry (Revenue)
Flexidynamic: RM31.31mil
Polydamic Group Bhd: RM11.78mil
Ripcol Industries S/B: RM17.2mil
Business
Design, engineering, installation, & commissioning of glove chlorination system.
M'sia: 86.28%
Vietnam: 4.38%
Thailand: 8.74%
Indonesia: 0.07%
Sri Lanka 0.53%

Fundamental
1.Market: Ace Market
2.Price: RM0.20 (EPS:RM0.0162)
3.P/E: PE12.35
4.ROE(Pro Forma III): 10.1%
5.ROE: 21.4%(2019), 24.8%(2018), 33%(2017)
6.Cash & fixed deposit after IPO: RM0.059 per shares
7.NA after IPO: RM0.12
8.Total debt to current asset after IPO: 0.708 (Debt: 31.832mil, Non-Current Asset: 21.998mil, Current asset: 44.976mil)
9.Dividend policy: Did not have formal dividend policy.

Past Financial Performance (Revenue, Earning Per shares)
2022: ***Remaining order book to be billed 2022 RM17.48mil
2021: ***order book to be billed Dec 2021 RM62.3mil
2020 (9mths): RM35.007 mil (EPS:0.0095)
2019: RM49.839 mil (EPS:0.0162)
2018: RM48.322 mil (EPS:0.0151)
2017: RM29.902 mil (EPS:0.0155) 

Net Profit Margin
2020 (9mths): 7.62%
2019: 9.22%
2018: 9.14%
2017: 14.79%

After IPO Sharesholding
Tan Kong Leong: 41.53%
Liew Heng Wei: 18.74%
Phitchaya Arsangku: 2.21%

Directors & Key Management Remuneration for FYE2021 (from gross profit 2019)
Total director remuneration: RM1.168mil or 8.37%
key management remuneration: RM0.4mil- 0.5mil or 2.87%-3.58%
total (max): RM1.668mil or 11.95%  

Use of fund
Repayment bank borrowing: 42.40% (purchase of 2 new factories 2019)
Renovation of new factories: 2.80%
Aquisition of machinery and equitment: 10.83%
Working capital: 24.03%
Listing Expenses: 19.94%

Good thing is:
1. Revenue increasing over 3 years. 
2. Debt ratio not too dangerous level. 

3. Two purchased new factories, estimated renovation completed by Aug-Sep 2021, 
4. Major customer Hartalega, contribute to Flexidyamic  revenue 2017-2020 (range 31.78%-40.91%).

The bad things:
1. Director fees & key managemnent remuneration already cost 11.95% from the company gross profit. 
2. Net profit percentage dropping since 2017.
3. No fixed dividend policy. 
4. ROE continue to fall over 3 years. 
5. Industry player for top 2 & top 3 revenue RM17mil & RM11mil, showing this industry is not generate high revenue (possible less demand of the project needed). 

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
2020 is the high demand for glove, however did not see large improvement in net margin. The company secure RM62mil order book to be billed in 2021. We should see revenue able double at 2021 due to one off high demand order book due to the pandemic. After 2021, business revenue should back to normal phase. For business growth vs risk table please refer as below chart. 

*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.

Teladan Setia Group Berhad

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Open to apply: 23/02/2021
Close to apply: 02/03/2021
Listing date: 16/03/2021

Share Capital
Market Cap: RM386.543mil
Total Shares:  805.298 mil shares (Public apply: 40 mil, Company Insider/Miti/Private Placement/other: 161.595mil)

Industry (Net Profit %)
Property development

Business
Business mainly in Melaka
Residential: 51%
Mixed development: 49%

Fundamental
1.Market: Ace Market
2.Price: RM0.48 (EPS:RM0.054)
3.P/E: PE8.9
4.ROE(Pro Forma III): 10.36%
5.ROE: 12.60%(2019), 16.19%(2018), 22.27%(2017)
6.Cash & fixed deposit after IPO: RM0.1153 per shares
7.NA after IPO: RM0.54
8.Total debt to current asset after IPO: 0.56 (Debt: 214.877mil, Non-Current Asset: 266.719mil, Current asset: 381.972mil)
9.Dividend policy: 20% of PAT as dividend.

Past Financial Performance (Revenue, EPS)
2020 (9mths): RM100.028 mil (EPS:0.022)
2019: RM232.988 mil (EPS:0.054)
2018: RM259.141 mil (EPS:0.061)
2017: RM359.511 mil (EPS:0.078) 

Net Profit Margin
2020 (9mths):19.1%
2019: 18.6%
2018: 18.8%
2017: 17.49%

After IPO Sharesholding
Teo Lay Ban: 41.6%
Teo Lay Lee: 11.1%
Teo Siew May: 11.1%

Directors & Key Management Remuneration for FYE2021 (from gross profit 2019)
Total director remuneration: RM1.678 mil or 2.08%
key management remuneration: RM0.90 mil-1.05mil or 1.12%-1.30%
total (max): RM2.728mil or 3.38%  

Use of fund
Land acquisition: 45.3%
Working capital for project development: 42.8%
Repayment of bank borrowings: 5.2%
Listing Expenses: 6.7%

Good thing is:
1. IPO price fair with the company value, PE8.9.
2. Have profit margin of 17%-19% rannge. 
3. Directors & Key Management Remuneration is not too expensive. 

The bad things:
1. Property development industry is effected by current overall economic.
2. ROE is less than 15%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
Overall is fair valuation, but current economic situation is not encouraging property market to grow. Property market will need to wait at least more than 2 year to better demand. Invest in this IPO might need more time to wait and need to continue monitoring their performance. For business growth & business risk please refer to below chart. 

*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.

Mobilia Holdings Berhad

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Open to apply: 03/02/2021
Close to apply: 09/02/2021
Listing date: 23/01/2021

Share Capital
Market Cap: RM92mil
Total Shares:  400 mil shares (Public apply: 20mil, Company Insider/Miti/Private Placement/other: 80mil)

Industry (Net Profit %)
Homeriz: 15.18% 
Spring Art: 13.14%
Mobilia: 11.14%
Liihen: 9.51%

Business
Design & Manufacturing of home furniture.
Oversea: 73.39%
Malaysia: 26.61%
*2017-2020: 50.48%-56.48% revenue come from 5 major customer. 

Fundamental
1.Market: Ace Market
2.Price: RM0.23 (EPS:0.02)
3.P/E: PE11.50
4.ROE(Pro Forma III): 17.29%
5.ROE: 35.71%(2019), 27.55%(2018), 31.45%(2017)
6.Cash & fixed deposit after IPO: RM0.0406 per shares
7.NA after IPO: RM0.10
8.Total debt to current asset after IPO: 1.176 (Debt: 39.385mil, Non-Current Asset: 45.954mil, Current asset: 33.447mil)
9.Dividend policy: No fixed dividend policy.

Past Financial Performance (Revenue, EPS)
2020 (8mths): RM44.729 mil (EPS:0.0136)
2019: RM75.589 mil (EPS:0.0248)
2018: RM66.504 mil (EPS:0.0184 )
2017: RM55.730 mil (EPS:0.0184) 

Net Profit Margin
2020 (8mths): 10.31%
2019: 11.14%
2018: 9.39%
2017: 11.24%

After IPO Sharesholding
Quek Wee Seng: 74.56% (Exelient & Firstchrome)
Quek Wee Seong: 73.88% (Exelient & Firstchrome)

Directors Remuneration for FYE2021 (from gross profit 2019)
Datin Siah Li Mei: RM42k
Quek Wee Seng: RM577k
Quek Wee Seong: RM474k
Tajul Arifin: RM42k
Lim See Tow: RM42k
Total director remuneration: RM1.177 mil or 6.05%

Key Management Remuneration  for FYE2021 (from gross profit 2019)
Tan Ley Wun: RM150k-200k
Khoo Ai Lee: RM150k-200k
Ku Yong Yee: RM100k-150k
Wong Eng Chuan: RM200k-250k
Quek Yan Song: RM50k-100k
key management remuneration: RM0.65mil-0.9mil or 3.34-4.62%

Use of fund
Construction of building: 42.03%
Purchase of machineries: 9.42%
Repayment of borrowings: 13.77%
Working capital: 13.77%
Listing Expenses: 21.74%

Good thing is:
1. PE11.5 is acceptable fair value.
2. ROE above 15%.
3. Revneue continue increase over past 3 years.
4. Global work from home trend increase demand of furniture.

The bad things:
1. Top 5 major customer contribute over 50% of company revenue. 
2. Debt is high. 
3. Director & top management remuneration is over 10% from company gross profit. 
4. Use 13.77% IPO fund to pay debt, & listing expenses is 21.74% of total IPO fund (this 2 item is less help to contribute business growth in futures)

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
The company choosen the right timing to IPO as global work from home increase demand of furniture, however Mobilia furniture is more focus on wood based furniture. The exstimated completion time for factory block B & C is 2022, we should see more revenue come in after 2 years time (unable to find out how many % increase in production capacity). Please refer below chart to understand the risk vs business growth forecast for the company within 3 years.

*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.

HPP Holdings Berhad

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Open to apply: 15/12/2020
Close to apply: 07/01/2021
Listing date: 20/01/2021

Share Capital
Market Cap: RM139.8345mil
Total Shares:  388.43mil shares (Public apply: 19.4216mil, Company Insider/Miti/Private Placement/other: 89.2474mil)

Industry
Printing Industry CAGR 2016-2019: 6.04% 
Top Five Industry Player (by PAT Margin)
Kinta Press & Packaging S/B: 20.98%
GL Printing S/B: 18.99%
Thumbprints Utd S/B: 13.47%
Hin Press S/B: 9.10%
Hayan Group (HPP): 8.72%

Business
Printing & production of paper-based packaging. 
*Standard format machine utilisation rate 88.44%
*Currently 6 machines (5 in production line, 1 for training purpose)
*IPO add 2 machines (will dispose on old machines)
*Forecast printing capacity increase 20%
Revenue from Malaysia: 72.44%
Revenue from Oversea: 27.56%

Fundamental
1.Market: Ace Market
2.Price: RM0.36 (EPS:0.0212)
3.P/E: PE16.98
4.ROE(Pro Forma III): 8.885%
5.ROE: 12.72%(2020), 22.76%(2019), 28.82%(2018)
6.Cash & fixed deposit after IPO: RM0.0878 per shares
7.NA after IPO: RM0.25
8.Total debt to current asset after IPO: 0.4655 (Debt: 28.566mil, Non-Current Asset: 66.417mil, Current asset: 61.360mil)
9.Dividend policy: 20% Net profit dividend payout ratio policy.

Past Financial Performance (Revenue, EPS)
2020: RM101.203 mil (EPS: 0.0212)
2019: RM82.681 mil (EPS: 0.0343)
2018: RM64.395 mil (EPS: 0.0384)

Net Profit Margin
2020: 8.71%
2019: 16.53%
2018: 23.19%

After IPO Sharesholding
Aurora Meadow S/B: 51.72%
Kok Hon Seng: 5.94% (indirect 55.3%)
Lau Teee Tee @ Lau Kim Wah: 1.98% (indirect 53.51%)
Ng Soh Hoon: 3.58% (indirect: 57.66%)
Chong Fea Chin: 1.79% (indirect 53.7%)
Ang Poh Geok: 7.01%

Directors Remuneration for FYE2021 (from gross profit 2020)
Lau Tee Tee @ Lau Kim Wah: RM100k
Kok Hon Seng: RM0.954 mil
Ng Soh Hoon: RM0.216 mil
Philip Goh Teck Siang: RM60k
Choo Chee Beng: RM36k
Lee Chong Leng: RM36k
Total director remuneration: RM1.402 mil or 6.77%

Key Management Remuneration  for FYE2020 (from gross profit 2019)
Tan Kian Siong @ Chen Kian Siong: RM0.251mil-0.3 mil
Mah Chen Wah: RM0.151mil-0.2mil
Ng Soh Moy: RM0.151mil-0.2mil
Teng Tiang Chia: RM0.201mil-0.25mil
Lee Kuei Yong: RM0.051mil-0.1mil
Subramaniam A/L Mogan: RM0.101mil-0.15mil
Nur Syafiqah Binti Hassan: RM0-0.05mil
key management remuneration: RM0.906mil-1.25mil or 4.38%-6.04%

Use of fund
Capital expenditure and expansion: 40.82%
Repayment of bank borrowing: 24.38%
Working capital: 16.31%
Sales and marketing expenses: 6.27%
Listing Expenses: 12.22%

Good thing is:
1. PE 16.98 under acceptable range. 
2. Revenue increase over 3 years.
3. Major sharesholder hold by Aurora Meadow S/B, will have less large dispose of shares activities after IPO. 
4. After IPO forecast printing capicity increase 20%. 

The bad things:
1. ROE & EPS dropping over 3 years. 
2. 16.31% IPO fund allocate to pay back bank borrowing. 
3. Industry CAGC is not in high growth. 
4. HPP is not major market player among their competitors. 
5. Director & top management remuneration is over 10% of the company gross profit. 

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
The IPO is at fair value.Estimated after completed install the new printing machine will have increase of printing capacity 20% that will increase revenue. However the business is not going to increase 100% in one or two years, as revenue also need to come with printing capacity. We might not see very high growth of business. (WARNING: business growth is not shares price growth)
for Risk vs business growth potential please refer below chart. 

*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.

New Rating Format

 

New Format of Rating in Blog Rating
The new rating format is separated into 2 category.  
(Rating is only personal opinion, investor should take their own risk)

Four Colour Column of Risk Reward
Green: Low Risk, High Return
Blue: Low Risk, Low Return
Yellow: High Risk, High Return
Red: High Risk, Low Return

Vertical Line & Horizontal Line
Vertical line: Possible return within 3 years. 
Horizontal line: Possible risk of not make profit. 

Example 1 (Rating is only personal opinion, investor should take their own risk)
Samaiden: Rating as Return 5, Risk 4. 
This is mean forecast the Samaiden business can growth with 3 years for 50% (Return 5), and the risk of not able to achieve business growth forecast is 40% (Risk 4). 
***Samaiden first day IPO price open  first day RM1.00 (+108% return), now slow drop back as price per now is RM0.78. 

Example 2 (Rating is only personal opinion, investor should take their own risk)
SCGBHD (Southern Cable): Rating as Return 1, Risk 7.
This mean forecast business able to growth within 3 years is 10% (Return 1), and the risk of not able to achieve business growth forecast is 70%. 
***SCGBHD first day open 0.335 (-1.47% losses), now price is at losses as well RM0.32 below IPO price. 

(Rating is only personal opinion, investor should take their own risk)

Mr D.I.Y Group (M) Berhad

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Open to apply: 06/10/2020
Close to apply: 14/10/2020
Listing date: 26/10/2020

Share Capital
Market Cap: RM294.95mil
Total Shares: 6.2766 mil shares (Public apply:125.532mil, Company Insider/Miti/Private Placement/other: 815.958mil)

Industry
Home Improvement Retail Sector.

Business
Hardware store.
Malaysia: 670 stores. (Penisular: 568, East Malaysia:102)
Brunei: 4 stores.

Fundamental
1.Market: Main Market
2.Price: RM1.60 (EPS:0.0506)
  -If retail IPO price lower than RM1.60, will refund the price difference.
3.P/E: PE31.6
4.ROE(Pro Forma III): 33.53
5.ROE: 54.19(2019), 58.79(2018), 60.14(2017)
6.Cash & fixed deposit after IPO: RM0.00807 per shares
7.NA after IPO: RM0.11
8.Total debt to current asset after IPO: 1.656 (Debt: 1.1203bil, Non-Current Asset: 1.1328bil, Current asset: 0.6767bil)
9.Dividend policy: 40% Net profit dividend payout ratio policy.

Past Financial Performance (Revenue, EPS)
2020 (6-mth): RM1.051bil (EPS: 0.0190)
2019: RM2.275bil (EPS: 0.0522)
2018: RM1.771bil (EPS: 0.0506)
2017: RM1.229bil (EPS: 0.0345)
***prospectures book EPS using Pre-IPO 6.088bil shares to calculate EPS, pg211)

Net Profit Margin
2020: 11.0%
2019: 14.0%
2018: 17.4%
2017: 17.1%

After IPO Sharesholding
1.Bee Family Limited: 50.6%
  - Tan Yu Yeh
  - Tan Yu Wei 
  - Yeh Family (PTC) LTD
  - WEI Futures Capital
2.Hyptis: 15.2%
  - Creador III L.P.
  - Creador II, LLC
3.Platinum Alphabet: 6.9% 
  - Gan Choon Leng
  - Tan Gaik Hoon

Directors Remuneration for FYE2020 (from gross profit 2019)
1.Dato' Azlam Shah Bin Alias: RM176k
2.Tan Yu Yah: RM1.187mil
3.Ong Chu Jin Adrian: RM1,271mil
4.Brahmal A/L Vasudevan: -
5.Ng Ing Peng: RM119k
6.Leng Choo Yin: RM111k
7.Tan Yu Wei: RM1.006mil
8.Soo Sze Yang: -
Total director remuneration from PBT: RM2.9646 mil or 0.308%

Key Management Remuneration  for FYE2020 (from gross profit 2019)
1.Lim Chen Hwee: RM550k-600k
2.Tan Yew Hock: RM400k-450k
3.Tan Yew Teik: RM350k-400k
4.Hoe Lye Peng: RM450k-500k
5.Lau Boon Teck: RM450k-500k
6.Chin Guangui: 450k-500k
key management remuneration from PBT: RM2.65mil-2.95mil or 0.306%

Use of fund
1.Repayment of bank borrowing: 91.6%
2.Listing Expenses: 8.4%

Good thing is:
1. ROE over 15.
2. Most large in number of hardware store in Malaysia (cost advantage) & Brands influence.
3. Past 3 year revenue increasing.
4. total Director & key management fee did not over gross profit 3%. 
5. Have fixed dividend payout policy.

 
The bad things:
1. PE31.6 is not cheap.
2. Net asset RM0.11
3. Net profit margin decreasing for pass 3 years.
4. 91.6% IPO fund use to pay back bank borrowing.
5. After IPO, still have RM1.12mil debt, but cash is RM50.623 mil. 

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
This businees model successfully expand their business to almost whole Malaysia. But we cannot expect the business continue growth as past few years, as it already expand notion wide. 
In the prospectus book Pg13 mention they expected to add additional 100 store in 2020 & 100 store in 2021, however did not mention the expected area to expand.
The price PE31.6 is included & price in potential of futures expansion, trust this is not a fair price & there might have opportunities to buy open market when it adjusted into their fair value. 

*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.