IPO (Rating 3.5 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/03/16
Close to apply: 05/04/16
Listing date: 19/04/16
Fundamental
Market: Main Market
Price: RM1.42 (par value:RM0.50)
EPS: RM0.092
P/E: 15.434x
Cash & fixed deposit after IPO: RM0.34 per shares (Cash 65mil, Debt 20.9mil)
NA after IPO: RM0.80
Debt ratio: 0.147 (Debt: RM25.92 mil, Asset: RM176.58 mil)
Dividend policy: 40% PAT
Business
PLeather 100%: Car seat cover, automotive leather, car door trim cover...
PAviation 60%: Aircraft leather seat...
EEmpire 100%: Retail outlet (smart fit, quick fit, car accessory cover)
Main Revenue
Malaysia: 88.71%
Overseas: 11.29% (Netherlands, Australia, Singapore,USA, New Zealand & other less than 1%)
Business Shares
***Based on number of installed-leather-upholstery passenger vehicle units for OEM & PDI market segment
2011: 36.3%
2012: 38.4%
2013: 57.8%
2014: 65.2%
2015: 67.7%
Major Customer: Toyota 34.33%, Fuji 22.99%, Tan Chong 12.46%, Proton 3.86%, Mitsubishi 2.48%
Past Financial Proformance
2012: RM62.1 mil (EPS: RM0.03)
2013: RM66.1 mil (EPS:RM0.0561)
2014: RM99.5 mil (EPS FPE 14:RM0.0671)
2015: RM129.5 mil (EPS FPE15:RM0.0920)
After IPO Sharesholding
Datuk Teoh Hwa Cheng (founder) & Datin Sam Yin Thing : 45.58% (under MRZ)
Director Salary (2016)
Dato' Mohamed Suffian : 50K-100K
Datuk Toeh Hwa Cheng: 550K-600K
Datin Sam Yin Thing : 200K-250K
Tan jin Sun : 350k-400k
Sam Chee Keng : 300k-350k
Dato' Dr Norraesah : 50k-100k
Leong Kam Weng : 50k-100k
***summary salary from Revenue: 1.19%-1.31% (FYE 2015)
Use of fund
Working Capital: 39.74% (Normal)
Repayment debt: 25.20% (Bad)
Puchase machineries: 11.12% (Good)
Contruction add production floor: 7.37% (Good)
Open Retail Outlet: 5.52% (Good)
Establisment business at Thailand: 2.21% (Good)
Expansion of PAviation's business: 1.47% (Good)
Listing Expenses: 7.37% (Normal)
Conclusion
Good thing is:
1. Cash is more than debt after IPO (nett cash company), & debt ratio is low.
2. Founder still is the director of Pecca & now he only 48 years old.
3. Revenue increase every year since 2012 & EPS as well.
4. Largest market shares in Malaysia.
The bad things:
1. PE15.43 consider not expensive not cheap.
2. 25.2% IPO fund use to pay debt.
3. Director fee around 1% from total revenue (expensive).
Conclusions
Overall, it is good company. With the PE15.43 is not expensive but also not cheap, but after add in the potential of growing of business it should be more valuable in future.
Price at RM1.42 should be fair.
Good timing: RM1.64 (add 15%, PE17.8)
Bad timing: RM1.065 (discount 25%, PE11.57)
IPO
▼
Tuesday, March 29, 2016
Friday, March 4, 2016
Bison Consolidated Berhad
IPO (Rating 3.0 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/03/16
Close to apply: 14/03/16
Listing date: 29/03/16
Fundamental
Market: Main Market
Price: RM1.10 (par value:RM0.20)
EPS: RM0.0589
P/E: 18.67x (SEM 7-eleven PE30.48)
Cash & fixed deposit after IPO: RM0.33 per shares (RM38.324 mil, mil shares)
NA after IPO: RM0.44
Debt ratio: 0.442 (Debt: RM43.95 mil, Asset: RM137.731 mil)
Dividend policy: no formal dividend
IPO Price
***Public/Retail IPO price is RM1.10, however if institutional IPO price is lesser than retail price, it will refund the difference to retail.
Business (Investment Holding)
Press & Convenience Retailing
-myNEWS.com, newplus, MAGBIT, THE FRONT PAGE, WHSmith.
Main Revenue
Mainly in Malaysia.
Revenue Segment
Tobacco: 35.1%
Food & beverage: 37.2%
Print media: 9.6%
Non-food: 4.8%
Consumer Service:1.4%
Advertising: 8.5%
Sale of related companies: 0.9%
Past Financial Proformance
2013: RM157.9 mil (EPS:RM0.0778)
2014: RM182.4 mil (EPS:RM0.0542)
2015: RM217.5 mil (EPS:RM0.0589)
After IPO Sharesholding
DANG TAI WEN, DANG TAI HOCK, DANG TAI LUK: 68.8%
Director Salary (2016)
DTL: 500K-550K (Revenue: 0.25%, PAT: 4%)
DTW: 450K-500K (Revenue: 0.22%, PAT: 3.7%)
DTH: 200K-250K (Revenue: 0.11%, PAT: 1.85%)
Use of fund
Capital Expenditure: 56.4%
Working Capital: 36.3%
Listing Expenses: 7.3%
Conclusion
Good thing is:
1. No IPO use to pay debt, all IPO fund use to it business.
2. Founder still as the major sharesholder (DTL).
3. Debt ratio is in healthy level.
4. Competitor PE30 (7-Eleven, SEM), Malaysia country PE15.5
5. Revenue is increase over the 3 years, however EPS growth rate is slowing down.
The bad things:
1. PE18 is consider high PE, however compare to its competitor 7-eleven (SEM), Bison is more attractive.
2. Having 35.1% revenue come from tobacco (tobacco in Malaysia is always be more expensive over the time).
3. NTA is only 40% from the IPO price.
Conclusions
Overall, this is consider a bit expensive company on the company IPO price. Fair value should be RM0.91
over the years, it main business myNEWS.com have growth fast in major city, & it will expected to slow down. If take consideration on future growth of the company, PE18 consider fair (as smart investor, we should always buy company that undervalued, but not just fair).
Price at PE15.5x : RM0.91
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/03/16
Close to apply: 14/03/16
Listing date: 29/03/16
Fundamental
Market: Main Market
Price: RM1.10 (par value:RM0.20)
EPS: RM0.0589
P/E: 18.67x (SEM 7-eleven PE30.48)
Cash & fixed deposit after IPO: RM0.33 per shares (RM38.324 mil, mil shares)
NA after IPO: RM0.44
Debt ratio: 0.442 (Debt: RM43.95 mil, Asset: RM137.731 mil)
Dividend policy: no formal dividend
IPO Price
***Public/Retail IPO price is RM1.10, however if institutional IPO price is lesser than retail price, it will refund the difference to retail.
Business (Investment Holding)
Press & Convenience Retailing
-myNEWS.com, newplus, MAGBIT, THE FRONT PAGE, WHSmith.
Main Revenue
Mainly in Malaysia.
Revenue Segment
Tobacco: 35.1%
Food & beverage: 37.2%
Print media: 9.6%
Non-food: 4.8%
Consumer Service:1.4%
Advertising: 8.5%
Sale of related companies: 0.9%
Past Financial Proformance
2013: RM157.9 mil (EPS:RM0.0778)
2014: RM182.4 mil (EPS:RM0.0542)
2015: RM217.5 mil (EPS:RM0.0589)
After IPO Sharesholding
DANG TAI WEN, DANG TAI HOCK, DANG TAI LUK: 68.8%
Director Salary (2016)
DTL: 500K-550K (Revenue: 0.25%, PAT: 4%)
DTW: 450K-500K (Revenue: 0.22%, PAT: 3.7%)
DTH: 200K-250K (Revenue: 0.11%, PAT: 1.85%)
Use of fund
Capital Expenditure: 56.4%
Working Capital: 36.3%
Listing Expenses: 7.3%
Conclusion
Good thing is:
1. No IPO use to pay debt, all IPO fund use to it business.
2. Founder still as the major sharesholder (DTL).
3. Debt ratio is in healthy level.
4. Competitor PE30 (7-Eleven, SEM), Malaysia country PE15.5
5. Revenue is increase over the 3 years, however EPS growth rate is slowing down.
The bad things:
1. PE18 is consider high PE, however compare to its competitor 7-eleven (SEM), Bison is more attractive.
2. Having 35.1% revenue come from tobacco (tobacco in Malaysia is always be more expensive over the time).
3. NTA is only 40% from the IPO price.
Conclusions
Overall, this is consider a bit expensive company on the company IPO price. Fair value should be RM0.91
over the years, it main business myNEWS.com have growth fast in major city, & it will expected to slow down. If take consideration on future growth of the company, PE18 consider fair (as smart investor, we should always buy company that undervalued, but not just fair).
Price at PE15.5x : RM0.91