IPO (Rating 2.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/04/16
Close to apply: 06/05/16
Listing date: 18/05/16
Fundamental
Market: Ace Market
Price: RM0.80 (par value:RM0.10)
EPS: RM0.051 (7 mth)
P/E: 9.72x (EPS full year is cal by EPS2015 90% +7mth divided by 19mth)
Cash & fixed deposit after IPO: RM0.13 per shares (Cash 50.745mil, Debt 39.202 mil)
NA after IPO: RM0.37
Debt ratio: 0.346 (Debt: RM39.202 mil, Asset: RM143.913 mil)
Dividend policy: 30% of annual net profit
Business
Manufacture of Bluetooth devices
Manufacture of other electronic & preision
Major Customer & Supplier
Major Cutomers: 89.9% (Plantronic 42.4%, Jaybird 43.6%, Sony 21.4%, Canin Opto 0.4%)
Majot Supplier: 45.5% (Cotron Corp 19.9%, WPG Soutth Asia 13.8%, SDKM 11.8%), mostly import.
Main Revenue
North America: 90.85%
Europe: 2.55%
Australia & New Zealand: 0.05%
Asia: 6.02%
Africa: 0.015%
Malaysia: 0.515%
Past Financial Proformance (Revenue)
2013: RM78.559 mil (EPS RM-0.835)
2014: RM234.212 mil (EPS RM0.047)
2015: RM192.518 mil (EPS RM0.088)
2016(7month): RM145.654 mil (EPS RM0.051)
After IPO Sharesholding
James Lim, Joshua Lim, Joel Lim: 67.7%
Director Salary (2016)
Chia Chee Hoong: RM0-50k
James Lim: RM1.5mil-1.55mil
Joshua Lim: RM0-50k
Low Teng Lum: RM0-50k
Leow Chan Khiang: RM0-50k
***summary total directors salary from gross profit & other income: 5.5%-6.4%
Use of fund
Repayment debt: 13.6% (Bad)
Capital Expenditure: 40.1% (Good)
R & D: 13.1% (Normal)
Working Capital: 26.8% (Normal)
Listing Expenses: 6.4% (below average)
Conclusion
Good thing is:
1. EPS growing pass 3 years.
2. Benefit from USD (if USD strengthen).
3. Estimated PE is 9.72 (good earning for EPS)
4. Debt ratio still in healthy level.
5. 80% IPO fund use to business growth.
The bad things:
1. CEO not Co-founder.
2. Listing in ACE market (requirement listing is more easy than main market, mean more risk involve).
3. Total director salary is only average, but CEO salary is super high.
4. Margin earning will reduce if USD is weaken.
5. Heavily focus on major customer.
6. 13.6% IPO fund use to pay debt.
Conclusions
Overall is above average/normal company. Having good earning with PE9.72x is attractive, however investor should take consideration on USD weaken effect.
2015 sales is lower than 2014, but earning per shares in increased, which mean we should take consideration on USD at weaken period how this company is sulvive. By using the USD rate 2014 (before USD go up) PE is 17.
IPO Price at RM0.80
Good time : RM1.056 (PE15 discount 20%)
Bad time : RM0.56 (PE15 discount 20%)
Thursday, April 28, 2016
Tuesday, April 26, 2016
LKL International Berhad
IPO (Rating 2.5 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 26/04/16
Close to apply: 04/05/16
Listing date: 16/05/16
Fundamental
Market: Ace Market
Price: RM0.20 (par value:RM0.10)
EPS: RM0.0056 (6 mth)
P/E: 14.18x (EPS full year is cal by EPS2015 90% +6mth divided by 18mth)
Cash & fixed deposit after IPO: RM0.035 per shares (Cash 15.134mil, Debt 9.258mil)
NA after IPO: RM0.13
Debt ratio: 0.146 (Debt: RM9.258 mil, Asset: RM63.585 mil)
Dividend policy: no fixed dividend policy
Syariah Status: (I can't found the status in prospectus)
Business
Manufacturing Medical/Healthcare beds, medical peripherals & accessories.
Main Revenue
Malaysia:74.63%
Oversea: 25.37%
Business Shares (2014)
LKL: 40.5%
Others: 59.5%
Past Financial Proformance
2013: RM28.077 mil (EPS RM0.0141)
2014: RM38.893 mil (EPS RM0.0190)
2015: RM39.039 mil (EPS RM0.0189)
After IPO Sharesholding
Tan Sri Datuk Adzmi Bin Abdul Wahab: 0.08%
Lim Kon Lian & Mok Mei Lan: 41.47%
Tan Chuan Hock: 6.71%
Tevanaigam Randy Chitty: 0.08%
Selma Enolil Binti Mustapha Khalil: 0.08%
Director Salary (2016)
Tan Sri Datuk Adzmi Bin Abdul Wahab: RM0-50k
Lim Kon Lian:RM650k-700k (62 yrs old)
Mok Mei Lan: RM350k-400k (61 yrs old)
Tan Chuan Hock: RM0-50k
Tevanaigam Randy Chitty: RM0-50k
Selma Enolil Binti Mustapha Khalil: RM0-50k
***summary total directors salary from gross profit & other income: 6.296% - 8.18%
Use of fund
Capital Expenditure: 37.61%
Working Capital: 33.65% (Normal)
Repayment debt: 17.68% (Bad)
Listing Expenses: 11.06%
Conclusion
Good thing is:
1. Co-founder still with the company (Lim & Mok)
2. Yearly revenue is increasing but slow down.
3. Debt ratio is in helathy level, Net asset not too far from IPO price.
4. Have market shares 40.5% (how much portion total selling in Malaysia compare other competitor).
The bad things:
1. Director salary is expensive compare to its income.
2. Listing in ACE market.
3. 17.68% of IPO fund use to pay debt.
4. Co-founder at 62 yrs old.
Conclusions
Overall is a normal IPO. Still unable to consider is good IPO. With slow down in revenue & PE 14.18 not consider cheap (M'sia country PE16.6 @ 8/4/16).
Because the company total revenue not consider very huge amount, if the next half year result able to perform better, it will increase a lot the company EPS & PE will drop as well.
Dicertor salary is consider expensive as well.
Price at RM0.20 little bit expensive.
Good time: RM0.28 (PE21)
Bad time: RM0.14 (PE10)
***Reader must aware that RM0.20 IPO price is 'look' cheap, & first day of listing will have a lot of buy & sell, price might up at morning, BUT if you unable to subscribe the IPO, better not to buy at first day.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 26/04/16
Close to apply: 04/05/16
Listing date: 16/05/16
Fundamental
Market: Ace Market
Price: RM0.20 (par value:RM0.10)
EPS: RM0.0056 (6 mth)
P/E: 14.18x (EPS full year is cal by EPS2015 90% +6mth divided by 18mth)
Cash & fixed deposit after IPO: RM0.035 per shares (Cash 15.134mil, Debt 9.258mil)
NA after IPO: RM0.13
Debt ratio: 0.146 (Debt: RM9.258 mil, Asset: RM63.585 mil)
Dividend policy: no fixed dividend policy
Syariah Status: (I can't found the status in prospectus)
Business
Manufacturing Medical/Healthcare beds, medical peripherals & accessories.
Main Revenue
Malaysia:74.63%
Oversea: 25.37%
Business Shares (2014)
LKL: 40.5%
Others: 59.5%
Past Financial Proformance
2013: RM28.077 mil (EPS RM0.0141)
2014: RM38.893 mil (EPS RM0.0190)
2015: RM39.039 mil (EPS RM0.0189)
After IPO Sharesholding
Tan Sri Datuk Adzmi Bin Abdul Wahab: 0.08%
Lim Kon Lian & Mok Mei Lan: 41.47%
Tan Chuan Hock: 6.71%
Tevanaigam Randy Chitty: 0.08%
Selma Enolil Binti Mustapha Khalil: 0.08%
Director Salary (2016)
Tan Sri Datuk Adzmi Bin Abdul Wahab: RM0-50k
Lim Kon Lian:RM650k-700k (62 yrs old)
Mok Mei Lan: RM350k-400k (61 yrs old)
Tan Chuan Hock: RM0-50k
Tevanaigam Randy Chitty: RM0-50k
Selma Enolil Binti Mustapha Khalil: RM0-50k
***summary total directors salary from gross profit & other income: 6.296% - 8.18%
Use of fund
Capital Expenditure: 37.61%
Working Capital: 33.65% (Normal)
Repayment debt: 17.68% (Bad)
Listing Expenses: 11.06%
Conclusion
Good thing is:
1. Co-founder still with the company (Lim & Mok)
2. Yearly revenue is increasing but slow down.
3. Debt ratio is in helathy level, Net asset not too far from IPO price.
4. Have market shares 40.5% (how much portion total selling in Malaysia compare other competitor).
The bad things:
1. Director salary is expensive compare to its income.
2. Listing in ACE market.
3. 17.68% of IPO fund use to pay debt.
4. Co-founder at 62 yrs old.
Conclusions
Overall is a normal IPO. Still unable to consider is good IPO. With slow down in revenue & PE 14.18 not consider cheap (M'sia country PE16.6 @ 8/4/16).
Because the company total revenue not consider very huge amount, if the next half year result able to perform better, it will increase a lot the company EPS & PE will drop as well.
Dicertor salary is consider expensive as well.
Price at RM0.20 little bit expensive.
Good time: RM0.28 (PE21)
Bad time: RM0.14 (PE10)
***Reader must aware that RM0.20 IPO price is 'look' cheap, & first day of listing will have a lot of buy & sell, price might up at morning, BUT if you unable to subscribe the IPO, better not to buy at first day.
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