IKHMAS JAYA GROUP BERHA

IPO (Rating 3 star out of 5 )
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 30/06/15
Close to apply: 07/07/15
Listing date: 27/07/15

Fundamental
Market: Main Market
Price: RM0.57
EPS: RM0.0547
P/E: 10.42x
NTA after IPO: RM0.31
Debt ratio: 0.52 (Debt: RM179 mil, Asset: RM342 mil)
Dividend policy: recommed minimum 20% dividend
Shariah Status: Yes

Business
Piling & foundation works, construction, civil works, prefabricated building system.

Order book
Business is more to project-by-project secured.
bal in 2015: RM279mil
2016: RM29 mil

Main Revenue
Piling & Foundation: 54.75%
Brige Construction: 25.41%
Building Construction: 16.85%
Manufacture & Instalation of Prefabricated buiding system: 2.99%

Principal Market
KL: 52.36%
Selangor: 38.83%
Others: 8.81%

Founder
Director- Dato'Ang Cheng Siong: 65% (indirect)
Director- Dato' Ir Dr Khoo Ping Sen:65% (indirect)
Director- Siew Mun Lout:-
Key Management: Yap Yoon Fatt:-

Use of fund
Purchase construstion equipment: 44.31%
Purchase Machinery & equipment for manufacturing: 6.96%
Repay debt: 16.71%
Working capital: 25.06%
Listing expenses: 6.96%

Conclusion
Good thing is:
1. Fundamentally the company is healthy, still have good profit with EPS RM0.0547.
2. Debt ratio still in healthy level.
3. Having shariah status, which mean trust fund like Islamic unit trust, Tabung Haji are allow to buy this company shares.
4. Founder still having big portion of sharesholding in hand.

The bad things:
1. 16.71% IPO fund use to pay debt, still can consider not soo over.
2. Order book finish soon in 2015 and left one project in 2016.
3. Market is mainly in Malaysia.


Overall, is a normal IPO. The is some risk on the company, the natural of this business based on project to project & there are no long-term contracts for this business.

Sunway Constructions Group Berhad

IPO (Rating 2 star out of 5 )
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 29/06/2015
Close to apply: 06/07/2015
Price Determination Date: 07/07/2015
Listing date: 28/07/2015

Fundamental
Market: Main Market
Price: RM1.20
***Final retail price not yet fixed. If final price lower than RM1.20, balance will refund to bank acct of who's apply, if final retail price more than RM1.20 , there will use RM1.20 as offer price
***Not to use manual post apply, as the price might difference & refund process will be more easy & safety.
EPS: RM0.097
P/E: 12.37x
NTA after IPO: RM0.24
Debt ratio: 0.753 (Debt: RM943 mil, Asset: RM1,252 mil)
Dividend policy: Suggested minimum 35% dividend policy on profit
Casflow Statement: RM51mil@2012, RM83mil@2013, RM183mil@2014

Business
Construction
Manufacturing & sale of precast concrete product
Mechanical, electrical & plumbing services
Foundation & geotechnical engineering services

Main Revenue (2014)
Malaysia: 86.4%%
Singapore: 13.6%

Utilisation of fund
The Suncon does not issue new shares, all offer sale of shares is from shareholders shares (Mainly from Sunway Berhad).
Estimated RM478.4 mil from sale of shares will paid to original shareholders.
**No IPO fund is allocated for Sunway Constructions Group Berhad.

Director
Dato' Ir Goh Chye Koon (less than 1%)
Kwan Foh Kwai (less than 1%)
Dato' Siew Kim Lun (less than 1%)
Dato Dr. Ir Johari Bin Basri (less than 1%)
Dato' Chew Chee Kin (less than 1%)
Evan Cheah (58.6% Indirect)

Non-director
Tan Sri Jeffrey Cheah 58% (indirectly)


Conclusion
Good thing is:
1. Fundamentally the company is healthy, still have profit with EPS RM0.097 (P/E 12.37x, 2014). However still have many construction company below this P/E12.37
3. Debt ratio still healthy, but still not the very safe level.
4. Business is under control of co-founder family, the Jeffrey Cheah family.
5. Business in Main board market, which give better security in capital protection.
6. Having many Dxtx' to get more business.
7. The brand name Sunway will attract investor.

The bad things:
1. No fund raising from IPO. All fund is sell of shares & payable to original exsting Sunway Construsction Group Berhad sharesholders. Whereby, I only can estimated it does not have any extra fund from IPO to grow the company.
2. Does not have every clear future plan on business, & the purpose of separate from Sunway Berhad not very clear.
3. Net tangible asset if RM0.24, IPO RM1.20 is 5x times higher than net tangible assets.

Overall, we can see the abilities of generate income from future. However, the business if heavily depend on getting projects. I would like to suggest this is a normal IPO, not to buy as long as above RM1.00.
Compare to privatization activities, Sunway Construction Group Berhad more likely like the total opposite the privatization without fund raising & no any other changes, except shareholders change.

XIN HWA HOLDING BERHAD

IPO (Rating 3.75 star out of 5 )
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 11/06/15
Close to apply: 17/06/15
Listing date: 30/06/15

Fundamental
Market: Main Market
Price: RM0.70
EPS: RM0.0875
P/E: 8x
NTA after IPO: RM0.61
Debt ratio: 0.36 (Debt: RM61 mil, Asset: RM171 mil)
Dividend policy: no formal dividend policy

Business
Logistics: Integrated Logistics services, land transport, warehousing, distribution.
Business operation mainly come from Joho, partial in Pulau Pinang, Selangor & N.Sembilan.

Main Revenue
Cargo transporation: 53.24%
Container haulage: 36.5%
Warehousing: 9.97%

Utilisation rate
Land transport opertation: 79.66% (no data on transport used rate for 2011-2012, but truck & Prime mover amount is increasing)
Warehousing & distribution operation: 68.44% (reduce over 4 years from 98.53%)

Principal Market
Malaysia: 90.01%
Singapore: 9.99%

Director
Ng Aik Chuan: 21.08%
Ng Yam Pin: 20.97%
Eng Peng Lam @ Ng Peng Lam: 27.95%

Use of fund
Construction of new warehouse: 17.96% (Pasir Gudang)
Expansion of fleet of vehicles: 42.93% (Truck:10 unit, Trailers:91)
Repay debt: 14.18%
Working capital: 11.65%
Listing expenses: 13.28%

Conclusion
Good thing is:
1. Fundamentally the company is healthy, still have good profit with EPS RM0.0875 (Business return 12.5%).
2. Net Asset of the company after IPO RM0.61 which near to the IPO price.
3. Debt ratio still healthy at 0.36
4. Business is under control of co-founder family, the Ng family.
5. Business in Main board market, which give better security in capital protection.

The bad things:
1. Their revenue to mainly from cargo transportaion, container haulage, & warehousing. But having very less revenue come from freight forwarding & customs brokerage (Strong freight forwarding business will increase sale getting more container).
2. The company use 14.18% IPO fund to pay debt.
3. Heavily depend on cargo transportation (Fuel increase will reduce profit margin).
4. Warehouse ultilisation rate is falling over 4 years from 98.53% to 68.44%. After complete build of Pasir Gudang warehouse might see better revenue (in term of location).
5. China-Thailand Canal project might effect it future business, but not so soon.

Overall, we can see the sincerity of the family wish to growth the business. The IPO can consider as good IPO.

Sedania Innovator Berhad
IPO (Rating: 4 stars out of 5)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 09/06/15
Close to apply: 18/06/15
Listing: 29/06/15

Fundamental
Market: Ace Market
Price: RM0.38
Revenue: continuing grow for 4 years (2011-2014)
EPS: RM0.04
P/E: 9.5x (2014)
NTA after IPO: RM0.16
Debt ratio: 0.017 (Debt: RM594k, Asset: RM33.5mil)
Dividend policy: no formal dividend policy

Business
mobile apps development, communication airtime sharing program, GreenBilling to businesses, & others.

Major Customer
Celcom 79.22% (contract expired 31/05/2020)
Maxis (unknow)
Robi Axiata 19.94% (Bangladesh)

Director
Datuk Noor Azrin bin Mohd Noor 50.04%

Use of fund
Capital expenditure: 20.4%
Marketing expenses: 21%
R&D expenses: 12.8%
Working capital: 34.6%
Listing expenses: 11.2%

Conclusion
Good IPO!!
The company are not IPO for pay DEBT!!This is what we want!!
Founder of company own biggest portion in the company!!

The only weakness on this IPO is ACE market, where the regulation of control the company is weak than main market.
Besides, we also need to take consider on fast changing in technology enviroment (might not so soon effect this company)

I personally give target for this IPO RM0.50 (P/E 12.5x) should be reasonable.