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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.