IPO (Rating 3.75 star out of 5.0)
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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)