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.