IPO (Rating 2.75 star out of 5.0)
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Date
Open to apply: 29/06/2016
Close to apply: 22/07/2016
Listing date: 10/08/2016
Fundamental
Market: Ace Market
Price: RM0.50 (par value:RM0.10)
EPS: RM0.0317
P/E: 15.77
Cash & fixed deposit after IPO: RM0.58 per shares (Cash RM 37.033 mil, Debt RM 37.362 mil)
NA after IPO: RM0.20
Debt ratio: 0.37 (Debt: 37.362 RM mil, Asset: RM 102.010 mil)
Dividend policy: Interim & final dividend basic.
Core Services
Engineering Design:38.1%
Contruction supervision: 35.1%
Project Management: 23.5%
BIM services: 3.3%
Market Discipline
Railway & Transit: 57%
Highway: 18%
Building & township: 12%
Port: 7%
Property: 3%
Mechinical & Engineering: 2%
Power & water: 1%
Sources of Project Funding
Gov: 71%
Private Developer: 3%
PFI/PPP/BOT: 26%
Major Customer
Prasarana Msia Bhd: 29%
Mass Rapid: 22%
Unit Perancang Ekonomi Negeri Penang: 7.7%
PLUS Berhad: 4.5%
Wesrports: 4.0%
Geographical Market (2015)
Malaysia: 97.5%
India, Brunie, Middle East: 2.5%
Past Financial Proformance (Revenue)
2013: RM101.449 mil (EPS:0.021)
2014: RM104.575 mil (0.0286)
2015: RM121.503 mil (0.0317)
Unbilled order book: RM365.9 mil (2-5 years)
After IPO Sharesholding
Datuk Ir.Kunasingam: 31.3%
Vanessa A/P Santhakumar: 31.3%
Director Salary (from gross profit 2015)
Dato' Mohd Zakhir Siddiqy: RM50,001 - RM100k
Datuk Ir. Kunasingam: RM2 mil - RM2.05 mil
Dato' Ir. Nitchiananthan: RM1.115 mil - RM1.2 mil
Dato' Ir. Khairudin: RM50,001 - RM100k
Mohan A/L Ramalingam: RM50,001 - RM100k
Foo lee Khean: RM50,001 - RM100k
Ir.Sharifah Azlina: RM700k - RM750k
***summary total directors salary from gross profit & other income: 9.94% - 10.8%
Use of fund
Expansion: 75.2% (into India 47%)
Repay Debt: 12.6%
Working Capital: 2.2%
Listing expenses: 10.0%
Conclusion
Good thing is:
1. Co-founder still with the company (Datuk Ir.Kunasingam)
2. Expand into India (reduce too depend on M'sia gov for project)
3. Debt ratio still healthy.
4. Over 3 year revenue increasing.
The bad things:
1. PE15.77 is consider just Fair.
2. Business too depend on Gov.
3. Listing in ACE market (less regulated, & less strict to listing compare to main board)
4. 12.6% use to pay debt.
5. Director fee is expensive.
Conclusions
Overall is a normal IPO. Price is at fair value. Is good effort to the company expend into India to reduce over depend on local gov project.
For fist day IPO, it might have opportunities to make profit.
IPO Price at RM0.50
Good time : RM0.57 (PE18)
Bad time : RM0.32 (PE10)