IPO (Rating 2.5 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 30/12/2016
Close to apply: 16/01/2017
Listing date: 06/02/2017
Core Business
Business: Rental income (KIP Mall)
Consumer group (5km radius from properties): Lower to middle (6 malls), Middle (KIP Mall,Bangi).
Fundamental
Market: Main Market
Price: RM1.00
Intrinsic Value (earning power): RM0.562 (Provided by prospectus forecast yr until 2018)
EPS: RM0.0654 (2017)
P/E: 15.29
Cash & fixed deposit after IPO: RM0.0349 per shares
NAV after IPO: RM0.98
Dividend policy: 90% income half year basic
Debt ratio: 0.151 (Debt: RM90.492 mil, Total Asset: RM597.818 mil)
Past Financial Proformance (Revenue)
2014: RM 48.304 mil (EPS: 0.0648)
2015: RM 51.632 mil (EPS: 0.0757)
2016: RM 53.006 mil (EPS: 0.0836)
Forecast year 2017: RM 36.147 mil (EPS: 0.0654)
Forecast year 2018: RM 56.069 mil (EPS: 0.0659)
Property & Occupancy
KIP Mart Tampoi : 97.3%
KIP Mart Kota Tinggi: 94.6%
KIP Mart Masai: 92.6%
KIP Mart Lavender Senawang: 72.6%
KIP Mart Melaka: 65.8%
KIP Mart Bangi:90.3%
After IPO Sharesholding
Dato' Chew Lak Seong, Dato' Ong Kook Liong: 53.7%
Manager's Management Fees (from forecast year 2017,2018 on gross profit)
2017: RM1.824 (4.18%)
2018: RM3.313 (4.90%)
***Sunreit management expenses ratio: 0.88%
Use of fund
Purchase of consideration for Aquisitions: 94.87%
Listing expenses: 4.66%
Financing Facilities: 0.47%
Conclusion
Good thing is:
1. Reits is a safety investment.
2. NAV value near to IPO price.
3. PE meet the minimum requirement (country PE 16.1 @23/12/2016)
4. Provide rental income from distribution.
The bad things:
1. Management fee is very expensive compare other retail Reits.
2. Doesn't provide any clear futures grow plan.
Conclusions
1. Attractive for those like to invest in low risk & receive dividend about 6% per year.
2. Not attractive to short-term investor.
IPO Price at RM1.00 (PE15.29)
Good time : RM0.999 (PE15)
Bad time : RM0.45 (PE7)