IPO (Rating 2.50 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 23/06/2016
Close to apply: 12/07/2016
Listing date: 21/07/2016
Fundamental
Market: Main Market
Price: RM0.75 (par value:RM0.40)
EPS: RM0.09 (2015)
P/E: 8.33
Cash & fixed deposit after IPO: RM0.218 per shares (Cash RM32.548 mil, Debt RM19.259 mil)
NA after IPO: RM0.61
Debt ratio: 0.175 (Debt: RM19.259 mil, Asset: RM109.999 mil)
Dividend policy: 30% of annual net profit (not fixed)
Business
Trading & distribution of third party brands & own brands of PCE, MPTE, measurement intrusment of water & sewrage industry.
Major Customer & Supplier
Major Cutomers: KNM (5.73%), Desmet Ballaestra (9.49%)
Majot Supplier: Neway Valve (12.99%), Laser GmbH % Co. (10.43%), British Rototherm (10.34%)
Main Revenue
Palm Oil & Oleochemicals: 59.13%
Oil & Gas, and Petrochemicals: 13.7%
Water Treastment & sewerage: 4.97%
Others: 22.2%
Geographical Market
Malaysia: 78.86%
Indonesia: 19.71%
Others: 1.43%
Past Financial Proformance (Revenue)
2012: 65.566 mil
2013: 83.190 mil
2014: 79.001 mil
2015: 68.253 mil
After IPO Sharesholding
Aik Swee Tong & Aik Cwo Shing (both through ABC equity): 41.57%
Aik family: 18.33%
Director Salary (2016)
Datuk Zainal Abidin Bin Ujud: Up to RM50k
Aik Swee Tong : RM600k - RM650k
Aik Cwo Shing: RM650k - RM700k
Gonf wooi Teik: up to RM50k
Marzuki bin Abd Rahman: up to RM50k
Lee Chen Yow: up to RM50k
Sharon Lee Ching Yee: up to RM50k
***summary total directors salary from gross profit & other income: 5.30% - 6.78%
Use of fund
Pay Debt: RM4.557 mil (25.32%)
Purchase of office cum store: RM6.5 mil (36.11%)
Purchase of equipment: RM1 mill (5.55%)
Working Capital: RM2.743 mil (15.24%)
Listing Expenses: RM3.2 mil (17.78%)
Conclusion
Good thing is:
1. PE is 8.33
2. Debt ratio is healthy.
3. Co-founder still manage the company.
4. Product is niche market.
5. IPO price is near to net asset.
The bad things:
1. Lisitng Expenses is too expensive.
2. 25.32% is use to pay debt.
3. Revenue past 3 years continue to drop.
4. Direcetor fee is expensive.
Conclusions
Overall is only an average company.
IPO Price at RM0.75
Good time : RM1.08 (PE12)
Bad time : RM0.54 (PE6)