BCM Alliance Berhad

IPO (Rating 3.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 28/09/2016
Close to apply: 10/10/2016
Listing date: 24/10/2016

Fundamental
Market: Ace Market
Price: RM0.19 (par value:RM0.05)
EPS: RM0.0152 (9mth 2015 + 3mth 2016)
P/E: 12.5
Cash & fixed deposit after IPO: RM0.0293 per shares
NA after IPO: RM0.08
Debt ratio: 0.33 (Debt: RM16.196 mil, Asset: RM38.957 mil)
Dividend policy: Does not have any dividend policy

Core Services
Speed Queen self-service launderette, distibution of commercial laundry equitment & medical devices.

Source of Income (2015)
commercail laundry equitment: 55.6%
Medical devices: 44.4%

Past Financial Proformance (Revenue)
2012: RM19.063 mil (EPS: 0.0005)
2013: RM35.379 mil (EPS: 0.0048)
2014: RM51.027 mil (EPS: 0.0133)
2015: RM64.335 mil (EPS: 0.0145)

After IPO Sharesholding
Koh Lap Hing: 12.6%
Liaw Chong Lin: 11.9%
Lim Jit Wei: 11.2%
Chung Eng Lam: 11.9%
Hew Chun SUn: 12.6%

Director Salary (from gross profit 2015)
Datuk Chin Goo Chai: 50k-100k
Koh Lap Hing: 250k-300k
Liaw Chong Lin: 1.15mil-1.2mil
Lim Jit Wei: 1.15mil-1.2mil
Chung Eng Lam: 950k-1mil
Hew Chun SUn: 950k-1mil
Datin Latiffah binti Endot: 0-50k
Ng Kok Wah: 0-50k
***total director fee from gross profit 2015: 23.65%-25.75%

Use of fund
Set up 11 chain of self-service launderette outlets: 16.2%
Purchase of new commercial laundry equiment & medical devices: 48.1%
Working capital: 20.1%
Listing expenses: 15.6%

Conclusion
Good thing is:
1. PE still attractive, debt ratio still healthy.
2. continue revenue growth for 4 years.
3. After IPO major hold 70% of the company shares.
4. Major IPO fund use to expend business.
5. Business product (self-services laundry) is in growing stage in industry cycle for major city.

The bad things:
1. Director fee is expensive.
2. Listing expenses is expensive.
3. Their equipment is import & having weakness for USD stronger.
4. Listing in ACE market.
5. Co-founder Koh Lap Hing is 65 years old.

Conclusions
Is a good IPO, but just not good enough. Main consideration we have to take note is the director fee is too expensive & is not fair to investor in this section.

IPO Price at RM0.19
Good time : RM0.23 (PE15)
Bad time : RM0.13 (PE9)

Perak Transit Berhad

IPO (Rating 3.0 star out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 15/09/2016
Close to apply: 23/09/2016
Listing date: 06/10/2016

Fundamental
Market: Ace Market
Price: RM0.15 (par value:RM0.10)
EPS: RM0.00471 for 4 months (net RM0.006 in prospectus if before new shares to public issue)
P/E: 10.61
Cash & fixed deposit after IPO: RM0.0168  per shares
NA after IPO: RM0.16
Debt ratio: 0.41 (Debt: 127.027 RM mil, Asset: RM 309.743 mil)
Dividend policy: up to 25% of net profits

Core Services
Operate bus Terminal Amanjaya, public bus services, & several petrol stations.

Source of Income (2015)
Rental: 23.54%
Kiosks: 2.4%
Fee: 13.04%
others: 0.88%
Bus operation: 29.16%
Petro station & ADO incentive: 30.98%

Past Financial Proformance (Revenue)
2013: RM64.394 mil (EPS:0.008)
2014: RM77.578 mil (0.015)
2015: RM74.123 mil (0.0214)
FPE 2015: RM22.699 mil (0.0075, for 4 mths)
FPE 2016: RM25.443 mil (0.006, for 4 mths)

After IPO Sharesholding
Dato'Sri Cheong Kong Fitt: 23.16%
Datin Sri Lim Sow Keng: 32.22%

Director Salary (from gross profit 2015)
Chang Ko Youn: 36k-100k
Cheong Kong Fitt: 350k-380k
Cheong Peak Sooi: 280-330
Wan Asmadi Bin Wan Ahmad: 36k-100k
Mohd Annas Bin Md Isa: 36k-100k
Ng Wai Luen: 36k-100k
***total director fee from gross profit 2015: 2.3%-3.37%

Use of fund
Business Expansion: 54.42% (to build terminal Kampar)
Repayment of hire purchase facilities: 5.74%
Working capital: 28.52%
Listing expenses: 11.32%

Conclusion
Good thing is:
1. Founder Cheong Kong Fitt still as director after IPO.
2. PE still attractive.
3. Debt ratio sill healthy.
4. Director fee is on market standard.
5. Public transport will always get support by gov.

The bad things:
1. ACE market counter
2. 2015 Revenue is drop.
3. Compertitor had increase the quality of services (KTMB- ETS tran)
4. Drop in diesel price 2015, but revenue is drop.
5. New car price is getting lower.

Conclusions
Price is attractive but is a risky choice for long term investment.

IPO Price at RM0.15
Good time : RM0.21 (PE15)
Bad time : RM0.09 (PE7)