IPO (Rating 2.5 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 30/12/2016
Close to apply: 19/01/2017
Listing date: 08/02/2017
Core Business, Geo, Customers, Supplier
Business: Enginnering solution on O&G & power generation.
Geo (operating facilities): Malaysia, Indonesia, Bahrain, UAE, UK
Customer 2016: Petronas 23.14%, Sarawak shell bhd 3.36%, Energy Engineering & Services 2.53%, Energy Machine Services L.L.C 1.02%
Supplier: Technorette sdn bhd 14.38%, FRZ Scientific 10.95%, Qatar Enginerring & Construction 10.02%
Fundamental
Market: Main Market
Price: RM1.50 (par value:RM0.50)
Intrinsic Value: RM1.48 (forcase by 2016 EPS0.152)
EPS: RM0.152
P/E: 9.87
Cash & fixed deposit after IPO: RM0.38 per shares
NA after IPO: RM0.76
Dividend policy: at least 30% on PAT
Financial Ratio
Trade Receivables turnover days: 95.70
Trade Payable turnover days: 70.81
Inventory turnover days: 62.82
Current Ratio: 1.25
Gearing Ratio: 0.82
Debt ratio: 0.19 (Debt: RM0.861 bil, Total Asset: RM1.885 bil)
Past Financial Proformance (Revenue)
2013: RM 536.195 mil (EPS: 0.95)
2014: RM 755.768 mil (EPS: 1.03)
2015: RM1402.942 mil (EPS: 2.52)
2016 (6 mths): RM 911.726 mil (EPS: 1.52)
After IPO Sharesholding
Hj.Abdul Kadier: 22.22%
Dato' Awang Daud: 14.17%
Dato' Karim: 28.02%
Director Remuneration (from gross profit 2015)
Hj.Abdul Kadier: RM350k-400k
Dato' Awang Daud: RM900k-950k
Dato' Karim: RM1150k-1200k
Dato' Mohamed Nor: RM150k-200k
others 3 director: RM100k-150k
***total director fee from gross profit: 1.23%-1.38%
Use of fund
Expansion of business & operation facilities: 73.69%
Working capital: 7.2%
Repayment borrowing: 14.74%
Listing expenses: 4.37%
Conclusion
Good thing is:
1. PE around 10
2. Intrinsic value is near to IPO price (earning power).
3. Debt ratio still acceptable.
4. Revenue still growing.
The bad things:
1. O&G still industry still very depend on the crude oil price.
2. Receiveable turnover days quite high.
3. Director fee is look lower in percetage but the amount pay out is very heavy if they unable to sustain their revenue.
4. 14.74% IPO use to pay debt.
Conclusions
The timing of IPO might not the best for the company since crude oil price still in low level. Might not able to provide good return in short-term.
IPO Price at RM1.50 (PE9.87)
Good time : RM1.82 (PE12)
Bad time : RM0.76 (PE5)
IPO
▼
Friday, December 30, 2016
KIP Real Estate Investment Trust
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)
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)
Tuesday, December 20, 2016
HLT Global Berhad
IPO (Rating 3.25 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 20/12/2016
Close to apply: 28/12/2016
Listing date: 10/01/2017
Core Business, Geo, Customers, Supplier
Business: Glove Dipping line 97.78% (design, fabrication, installation, tesing, commissioning),upgrading & modification works 1.42% & supply part 0.8%
Geo: M'sia 73.62%, Thai 25.86%, Indo 0.52%
Customer 2016 (top3): Central Medicare S/B (33.3%,6yrs), Cardinal Health 222 Thai ltd (25.8%,2yrs), Green Prospect S/B (19.1%,7yrs)
Supplier (top3): Choo Bee Hardware S/B (12.8%,7yrs), Yoshiki Solution Thai Ltd (12.7%,1yr), Yankong Stainless S/B (10%,6yr).
Fundamental
Market: Ace Market
Price: RM0.45 (par value:RM0.10)
Intrinsic Value: RM0.344
EPS: RM0.0235 (7mth)
P/E: 11.25 (forecast 12month EPS 0.40)
Cash & fixed deposit after IPO: RM0.095 per shares
NA after IPO: RM0.19
Dividend policy: Does not fixed any % in dividend policy
Financial Ratio
Trade Receivables turnover days: 46
Trade Payable turnover days: 129
Inventory turnover days: 18
Current Ratio: 1.98
Gearing Ratio: 0.04
Debt ratio after IPO: 0.386 (Debt: RM32.618 mil, Total Asset: RM84.411 mil)
Past Financial Proformance (Revenue)
2013: RM 46.042 mil (EPS: 0.0377)
2014: RM 43.568 mil (EPS: 0.0324)
2015: RM 75.697 mil (EPS: 0.0460)
2016: RM 47.692 mil (EPS: 0.0235) **for 7month
After IPO Sharesholding
Chan Yoke Chun: 35.09%
Wong Kok Wah: 36.52%
Director Remuneration
Wong Kok Wah: 700k-750k
Chan Yoke Chun: 700k-750k
other 2 director: 50k-100k
other 1 director: 0-50k
***total director fee from gross profit 2015: 9.85%-11.50%
Use of fund
Capital Expenditure: 50.52%
R&D expenditure: 8.42%
Working Capital: 27.59%
Listing Expenses: 13.47%
***Factory utilasation rate:84.62% (2016), 81.42% (2015), 72.73% (2014), 90.91% (2013)
Conclusion
Good thing is:
1. Revenue still growing & around PE11.
2. Debt ratio still healthy.
3. Co-founded WKW still remain as major sharesholder.
4. Big potion of IPO fund use to develop business (buid new factory).
The bad things:
1. listing in ACE market.
2. Price is 30% above intrinsic value.
3. Director fee is too high.
Conclusions
Overall is a above average IPO & near to fair IPO. Still able to see the true value of IPO. However, director fee might quite high.
IPO Price at RM0.45 (PE11.25)
Good time : RM0.60 (PE15)
Bad time : RM0.28 (PE7)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 20/12/2016
Close to apply: 28/12/2016
Listing date: 10/01/2017
Core Business, Geo, Customers, Supplier
Business: Glove Dipping line 97.78% (design, fabrication, installation, tesing, commissioning),upgrading & modification works 1.42% & supply part 0.8%
Geo: M'sia 73.62%, Thai 25.86%, Indo 0.52%
Customer 2016 (top3): Central Medicare S/B (33.3%,6yrs), Cardinal Health 222 Thai ltd (25.8%,2yrs), Green Prospect S/B (19.1%,7yrs)
Supplier (top3): Choo Bee Hardware S/B (12.8%,7yrs), Yoshiki Solution Thai Ltd (12.7%,1yr), Yankong Stainless S/B (10%,6yr).
Fundamental
Market: Ace Market
Price: RM0.45 (par value:RM0.10)
Intrinsic Value: RM0.344
EPS: RM0.0235 (7mth)
P/E: 11.25 (forecast 12month EPS 0.40)
Cash & fixed deposit after IPO: RM0.095 per shares
NA after IPO: RM0.19
Dividend policy: Does not fixed any % in dividend policy
Financial Ratio
Trade Receivables turnover days: 46
Trade Payable turnover days: 129
Inventory turnover days: 18
Current Ratio: 1.98
Gearing Ratio: 0.04
Debt ratio after IPO: 0.386 (Debt: RM32.618 mil, Total Asset: RM84.411 mil)
Past Financial Proformance (Revenue)
2013: RM 46.042 mil (EPS: 0.0377)
2014: RM 43.568 mil (EPS: 0.0324)
2015: RM 75.697 mil (EPS: 0.0460)
2016: RM 47.692 mil (EPS: 0.0235) **for 7month
After IPO Sharesholding
Chan Yoke Chun: 35.09%
Wong Kok Wah: 36.52%
Director Remuneration
Wong Kok Wah: 700k-750k
Chan Yoke Chun: 700k-750k
other 2 director: 50k-100k
other 1 director: 0-50k
***total director fee from gross profit 2015: 9.85%-11.50%
Use of fund
Capital Expenditure: 50.52%
R&D expenditure: 8.42%
Working Capital: 27.59%
Listing Expenses: 13.47%
***Factory utilasation rate:84.62% (2016), 81.42% (2015), 72.73% (2014), 90.91% (2013)
Conclusion
Good thing is:
1. Revenue still growing & around PE11.
2. Debt ratio still healthy.
3. Co-founded WKW still remain as major sharesholder.
4. Big potion of IPO fund use to develop business (buid new factory).
The bad things:
1. listing in ACE market.
2. Price is 30% above intrinsic value.
3. Director fee is too high.
Conclusions
Overall is a above average IPO & near to fair IPO. Still able to see the true value of IPO. However, director fee might quite high.
IPO Price at RM0.45 (PE11.25)
Good time : RM0.60 (PE15)
Bad time : RM0.28 (PE7)
Matang Berhad
IPO (Rating 1.0 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 19/12/2016
Close to apply: 03/01/2017
Listing date: 17/01/2017
Core Business, Customers, Supplier
Business: Plantation estate, Sale of FFB, & Property Investment Holding.
Major Customer: Lenga Palm Industrial S/B (100%, 2016)
Supplier: Twwin Arrow Fertillizer S/B 68.2%, Nisin Bio Tech 19.4%
Fundamental
Market: Ace Market
Price: RM0.13 (par value:RM0.10)
Intrinsic Value: RM0.075 (forcase by 2016 EPS RM0.0009)
EPS: RM0.0009
P/E: 144.44
Cash & fixed deposit after IPO: RM0.015 per shares
NA after IPO: RM0.10
Dividend policy: Does not fixed any dividend policy
Financial Ratio
Trade Receivables turnover days: 23
Trade Payable turnover days: 27 (2015d data, 2016 no data)
Inventory turnover days: 17
Current Ratio: 17 (after IPO 29.96)
Debt ratio: 0.013 (Debt: RM2.396 mil, Total Asset: RM184.53 mil)
Past Financial Proformance (Revenue)
2013: RM 8.720 mil (EPS: 0.0011)
2014: RM 9.402 mil (EPS: 0.0011)
2015: RM 7.411 mil (EPS: 0.0010)
2016: RM 7.169 mil (EPS: 0.0009)
Platation area (by Hectares)
Less profitable trees
Replanting: 16.4 (need 5 years to mature)
1-4 years: 217.6
21-25 years: 16.4
Profitable trees
5-10 years: 244.9
11-15 years: 216.8
16-20 years: 370.0
After IPO Sharesholding
Eng Cheng Guan 0.01%
Datuk Tan Teck Poh 0.01%
Ng Keng Heng 0.05%
Director Remuneration (from gross profit 2016)
Eng Cheng Guan 50k-100k
others 11 director 0-50k
***total director fee from gross profit 2015: 1.09%-14.27%
Use of fund
Replanting: 1.5%
Capital Expenditure: 15.1%
Working Capital: 70.5%
Listing Expenses: 12.9%
Conclusion
Good thing is:
1.Profitable trees 76.9% (2016), the company forecast 93.3% (2017).
2. Debt is very low compare Asset
The bad things:
1. PE is too high because of EPS too low.
2. Director fees too high (14.27% from gross profit 2016) & too many directors for this company size.
3. Yearly profit is dropping.
4. Director holding % very low (major sharesholder Huaren, Rohua, MHB)
Conclusions
Avoid this IPO
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 19/12/2016
Close to apply: 03/01/2017
Listing date: 17/01/2017
Core Business, Customers, Supplier
Business: Plantation estate, Sale of FFB, & Property Investment Holding.
Major Customer: Lenga Palm Industrial S/B (100%, 2016)
Supplier: Twwin Arrow Fertillizer S/B 68.2%, Nisin Bio Tech 19.4%
Fundamental
Market: Ace Market
Price: RM0.13 (par value:RM0.10)
Intrinsic Value: RM0.075 (forcase by 2016 EPS RM0.0009)
EPS: RM0.0009
P/E: 144.44
Cash & fixed deposit after IPO: RM0.015 per shares
NA after IPO: RM0.10
Dividend policy: Does not fixed any dividend policy
Financial Ratio
Trade Receivables turnover days: 23
Trade Payable turnover days: 27 (2015d data, 2016 no data)
Inventory turnover days: 17
Current Ratio: 17 (after IPO 29.96)
Debt ratio: 0.013 (Debt: RM2.396 mil, Total Asset: RM184.53 mil)
Past Financial Proformance (Revenue)
2013: RM 8.720 mil (EPS: 0.0011)
2014: RM 9.402 mil (EPS: 0.0011)
2015: RM 7.411 mil (EPS: 0.0010)
2016: RM 7.169 mil (EPS: 0.0009)
Platation area (by Hectares)
Less profitable trees
Replanting: 16.4 (need 5 years to mature)
1-4 years: 217.6
21-25 years: 16.4
Profitable trees
5-10 years: 244.9
11-15 years: 216.8
16-20 years: 370.0
After IPO Sharesholding
Eng Cheng Guan 0.01%
Datuk Tan Teck Poh 0.01%
Ng Keng Heng 0.05%
Director Remuneration (from gross profit 2016)
Eng Cheng Guan 50k-100k
others 11 director 0-50k
***total director fee from gross profit 2015: 1.09%-14.27%
Use of fund
Replanting: 1.5%
Capital Expenditure: 15.1%
Working Capital: 70.5%
Listing Expenses: 12.9%
Conclusion
Good thing is:
1.Profitable trees 76.9% (2016), the company forecast 93.3% (2017).
2. Debt is very low compare Asset
The bad things:
1. PE is too high because of EPS too low.
2. Director fees too high (14.27% from gross profit 2016) & too many directors for this company size.
3. Yearly profit is dropping.
4. Director holding % very low (major sharesholder Huaren, Rohua, MHB)
Conclusions
Avoid this IPO
Tuesday, December 13, 2016
FoundPac Group Berhad (FPGROUP 5277)
IPO (Rating 3.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 13/12/2016
Close to apply: 19/12/2016
Listing date: 29/12/2016
Industrial product (Core Business, Geo, Customers, Supplier)
Business: Percision engineering parts in semiconductor industry
Geo: - does not decladed
Major Customer: Broadcom Corporation 47.7% (US- having 11 years of business relationship)
Major Supplier: ADE Technologies Pte Ltd 38.26% (S'pore), Gaffoglio 6.86% (US), Innovation semicon 6.10% (US).
Fundamental
Market: Main Market
Price: RM0.54 (par value:RM0.10)
Intrinsic Value: RM0.4099 (forcase by 2016 EPS 0.0448)
EPS: RM0.0448
P/E: 12.054
Cash after IPO: RM0.08319 per shares
NA after IPO: RM0.16
Dividend policy: at least 30% dividend profit after tax
Financial Ratio
Trade Receivables turnover days: 61
Trade Payable turnover days: 53
Inventory turnover days: 41
Current Ratio: 9.92
Debt ratio: 0.0787 (Debt: RM5.198 mil, Total Asset: RM66.087 mil)
Past Financial Proformance (Revenue)
2014: RM 30.204 mil (EPS: 0.0256), profit margin 41.96%
2015: RM 34.370 mil (EPS: 0.0359), profit margin 46.14%
2016: RM 44.108 mil (EPS: 0.0448), profit margin 47.06%
After IPO Sharesholding
FoundPac Holdings: 64.32%
(Lee Chun Wah, Tan Sin Khoon, Ong Choon Heng)
Director Remuneration (from gross profit 2016)
Tan Cheik Eaik: RM0-50k
Lee Chun Wah: RM750k-800k
Tan Sin Khoon: RM750k-800k
Ong Choon Heng: RM350k-400k
Chan Bee Cheng: RM0-50k
Teoh Lay Fung: RM0-50k
Total director fee: 8.91%-10.12%
Use of fund
Purchase of property, plant & equipment: 37.04%
Overseas expansion: 18.52%
Working Capital: 16.66%
D&D Expenditure: 13.89%
Listing Expenses: 13.89%
Conclusion
Good thing is:
1. 3 years revenue, EPS, profit margin, continue perform better.
2. Have at least 30% dividend PAT policy.
3. Debt is at very minimum compare to asset.
4. Cash Flow statement showing perform better over pass 3 years.
5. IPO fund use to expend business.
6. At least having 47.7% revenue is from USD.
7. Business (Percision for semiconductor) product still in industrial growth stage.
The bad things:
1. Director fee is too expensive 8.91%-10.12%.
2. Over depend on single major customer (47.7% Broadcom Corp)
3. 31% expensive compare intrinsic value.
Conclusions
Is a good IPO. But the 2 major weakness is director fee too high, & over depend on one single customer.
By forecast on it growing business, it should able to perform better for coming years, since weak MYR will increase their product demand.
IPO Price at RM0.54 (PE12)
Good time : RM0.675 (PE15)
Bad time : RM0.35 (PE8)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 13/12/2016
Close to apply: 19/12/2016
Listing date: 29/12/2016
Industrial product (Core Business, Geo, Customers, Supplier)
Business: Percision engineering parts in semiconductor industry
Geo: - does not decladed
Major Customer: Broadcom Corporation 47.7% (US- having 11 years of business relationship)
Major Supplier: ADE Technologies Pte Ltd 38.26% (S'pore), Gaffoglio 6.86% (US), Innovation semicon 6.10% (US).
Fundamental
Market: Main Market
Price: RM0.54 (par value:RM0.10)
Intrinsic Value: RM0.4099 (forcase by 2016 EPS 0.0448)
EPS: RM0.0448
P/E: 12.054
Cash after IPO: RM0.08319 per shares
NA after IPO: RM0.16
Dividend policy: at least 30% dividend profit after tax
Financial Ratio
Trade Receivables turnover days: 61
Trade Payable turnover days: 53
Inventory turnover days: 41
Current Ratio: 9.92
Debt ratio: 0.0787 (Debt: RM5.198 mil, Total Asset: RM66.087 mil)
Past Financial Proformance (Revenue)
2014: RM 30.204 mil (EPS: 0.0256), profit margin 41.96%
2015: RM 34.370 mil (EPS: 0.0359), profit margin 46.14%
2016: RM 44.108 mil (EPS: 0.0448), profit margin 47.06%
After IPO Sharesholding
FoundPac Holdings: 64.32%
(Lee Chun Wah, Tan Sin Khoon, Ong Choon Heng)
Director Remuneration (from gross profit 2016)
Tan Cheik Eaik: RM0-50k
Lee Chun Wah: RM750k-800k
Tan Sin Khoon: RM750k-800k
Ong Choon Heng: RM350k-400k
Chan Bee Cheng: RM0-50k
Teoh Lay Fung: RM0-50k
Total director fee: 8.91%-10.12%
Use of fund
Purchase of property, plant & equipment: 37.04%
Overseas expansion: 18.52%
Working Capital: 16.66%
D&D Expenditure: 13.89%
Listing Expenses: 13.89%
Conclusion
Good thing is:
1. 3 years revenue, EPS, profit margin, continue perform better.
2. Have at least 30% dividend PAT policy.
3. Debt is at very minimum compare to asset.
4. Cash Flow statement showing perform better over pass 3 years.
5. IPO fund use to expend business.
6. At least having 47.7% revenue is from USD.
7. Business (Percision for semiconductor) product still in industrial growth stage.
The bad things:
1. Director fee is too expensive 8.91%-10.12%.
2. Over depend on single major customer (47.7% Broadcom Corp)
3. 31% expensive compare intrinsic value.
Conclusions
Is a good IPO. But the 2 major weakness is director fee too high, & over depend on one single customer.
By forecast on it growing business, it should able to perform better for coming years, since weak MYR will increase their product demand.
IPO Price at RM0.54 (PE12)
Good time : RM0.675 (PE15)
Bad time : RM0.35 (PE8)
Tuesday, November 29, 2016
Rhone Ma Holding Berhad
IPO (Rating 4.0 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/11/2016
Close to apply: 06/12/2016
Listing date: 19/12/2016
Core Business, Geo, Customers, Supplier
Business: Animal Health Solution product (78.42%), Distribution & supply of food ingredients (21.58%)
Geo: Malaysia (97.59%), Oversea (2.41%)
Customer 2016: one major customer (9.94%), & others 660 customer list since 2005.
Supplier: Merial Group (43.65%), Roquette Group (22.97%)
Fundamental
Market: Main Market
Price: RM0.75 (par value:RM0.50)
Intrinsic Value: RM0.7752 (forcase by 2016 EPS 0.09)
EPS: RM0.09
P/E: 8.33
Cash & fixed deposit after IPO: RM0.09 per shares
NA after IPO: RM0.56
Dividend policy: Does not fixed any % in dividend policy
Financial Ratio
Trade Receivables turnover days: 77
Trade Payable turnover days: 55
Inventory turnover days: 99
Current Ratio: 3.88
Gearing Ratio: 0.09
Debt ratio: 0.19 (Debt: RM21.936 mil, Total Asset: RM114.308 mil)
Past Financial Proformance (Revenue)
2013: RM 83.715 mil (EPS: 0.08)
2014: RM 91.528 mil (EPS: 0.11)
2015: RM106.735 mil (EPS: 0.08)
2016: RM 77.968 mil (EPS: 0.09)
After IPO Sharesholding
Dr.Lim, Foong Kam Weng, Dr.Yip (all under BASB): 51.12%
Others Directors: 5.22% (total 15.66% for 3 directors) & 3.73% (1 director)
Director Remuneration (from gross profit 2015)
Dato' Hamzah: 50k-100k
Dr.Lim: 750k-800k
Foong Kam Weng: 550k-600k
Dr.Yip: 400k-450k
Others (3 director): 0-50K
***total director fee from gross profit 2015: 5.17%-6.2%
Use of fund
Capital Expenditure: 77.55% (New GMP-Compliant Plant, Puchase Machineries & Equitment, Contruction of warehouse)
Working Capital: 6.62%
Listing Expenses: 15.83%
Conclusion
Good thing is:
1. PE8.33 (Profitable PE area 7-10)
2. Only one major customer & less than 10%.
3. Price is near to NA & par Value.
4. Profit is growing.
5. IPO price is around intrisic value
6. 84.17% of IPO fund use to expand business.
The bad things:
1. High depend of 2 major supplier.
2. Director fees is a bit high (good company should be less than 3%).
3. Listing expenses is high (normally around 10%)
Conclusions
This is what we want IPO without paying debt & mainly to expand business. Worth to invest & must keep track on every quarter result if hold more more longer period.
IPO Price at RM0.75 (PE8.33)
Good time : RM1.35 (PE15)
Bad time : RM0.63 (PE7)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/11/2016
Close to apply: 06/12/2016
Listing date: 19/12/2016
Core Business, Geo, Customers, Supplier
Business: Animal Health Solution product (78.42%), Distribution & supply of food ingredients (21.58%)
Geo: Malaysia (97.59%), Oversea (2.41%)
Customer 2016: one major customer (9.94%), & others 660 customer list since 2005.
Supplier: Merial Group (43.65%), Roquette Group (22.97%)
Fundamental
Market: Main Market
Price: RM0.75 (par value:RM0.50)
Intrinsic Value: RM0.7752 (forcase by 2016 EPS 0.09)
EPS: RM0.09
P/E: 8.33
Cash & fixed deposit after IPO: RM0.09 per shares
NA after IPO: RM0.56
Dividend policy: Does not fixed any % in dividend policy
Financial Ratio
Trade Receivables turnover days: 77
Trade Payable turnover days: 55
Inventory turnover days: 99
Current Ratio: 3.88
Gearing Ratio: 0.09
Debt ratio: 0.19 (Debt: RM21.936 mil, Total Asset: RM114.308 mil)
Past Financial Proformance (Revenue)
2013: RM 83.715 mil (EPS: 0.08)
2014: RM 91.528 mil (EPS: 0.11)
2015: RM106.735 mil (EPS: 0.08)
2016: RM 77.968 mil (EPS: 0.09)
After IPO Sharesholding
Dr.Lim, Foong Kam Weng, Dr.Yip (all under BASB): 51.12%
Others Directors: 5.22% (total 15.66% for 3 directors) & 3.73% (1 director)
Director Remuneration (from gross profit 2015)
Dato' Hamzah: 50k-100k
Dr.Lim: 750k-800k
Foong Kam Weng: 550k-600k
Dr.Yip: 400k-450k
Others (3 director): 0-50K
***total director fee from gross profit 2015: 5.17%-6.2%
Use of fund
Capital Expenditure: 77.55% (New GMP-Compliant Plant, Puchase Machineries & Equitment, Contruction of warehouse)
Working Capital: 6.62%
Listing Expenses: 15.83%
Conclusion
Good thing is:
1. PE8.33 (Profitable PE area 7-10)
2. Only one major customer & less than 10%.
3. Price is near to NA & par Value.
4. Profit is growing.
5. IPO price is around intrisic value
6. 84.17% of IPO fund use to expand business.
The bad things:
1. High depend of 2 major supplier.
2. Director fees is a bit high (good company should be less than 3%).
3. Listing expenses is high (normally around 10%)
Conclusions
This is what we want IPO without paying debt & mainly to expand business. Worth to invest & must keep track on every quarter result if hold more more longer period.
IPO Price at RM0.75 (PE8.33)
Good time : RM1.35 (PE15)
Bad time : RM0.63 (PE7)
Wednesday, September 28, 2016
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)
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)
Friday, September 16, 2016
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)
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)
Wednesday, June 29, 2016
HSS Engineers Berhad
IPO (Rating 2.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
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)
Copyright@http://lchipo.blogspot.com/
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)
Thursday, June 23, 2016
Dancomech Holdings Berhad
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)
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)
Thursday, April 28, 2016
Salutica Berhad
IPO (Rating 2.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/04/16
Close to apply: 06/05/16
Listing date: 18/05/16
Fundamental
Market: Ace Market
Price: RM0.80 (par value:RM0.10)
EPS: RM0.051 (7 mth)
P/E: 9.72x (EPS full year is cal by EPS2015 90% +7mth divided by 19mth)
Cash & fixed deposit after IPO: RM0.13 per shares (Cash 50.745mil, Debt 39.202 mil)
NA after IPO: RM0.37
Debt ratio: 0.346 (Debt: RM39.202 mil, Asset: RM143.913 mil)
Dividend policy: 30% of annual net profit
Business
Manufacture of Bluetooth devices
Manufacture of other electronic & preision
Major Customer & Supplier
Major Cutomers: 89.9% (Plantronic 42.4%, Jaybird 43.6%, Sony 21.4%, Canin Opto 0.4%)
Majot Supplier: 45.5% (Cotron Corp 19.9%, WPG Soutth Asia 13.8%, SDKM 11.8%), mostly import.
Main Revenue
North America: 90.85%
Europe: 2.55%
Australia & New Zealand: 0.05%
Asia: 6.02%
Africa: 0.015%
Malaysia: 0.515%
Past Financial Proformance (Revenue)
2013: RM78.559 mil (EPS RM-0.835)
2014: RM234.212 mil (EPS RM0.047)
2015: RM192.518 mil (EPS RM0.088)
2016(7month): RM145.654 mil (EPS RM0.051)
After IPO Sharesholding
James Lim, Joshua Lim, Joel Lim: 67.7%
Director Salary (2016)
Chia Chee Hoong: RM0-50k
James Lim: RM1.5mil-1.55mil
Joshua Lim: RM0-50k
Low Teng Lum: RM0-50k
Leow Chan Khiang: RM0-50k
***summary total directors salary from gross profit & other income: 5.5%-6.4%
Use of fund
Repayment debt: 13.6% (Bad)
Capital Expenditure: 40.1% (Good)
R & D: 13.1% (Normal)
Working Capital: 26.8% (Normal)
Listing Expenses: 6.4% (below average)
Conclusion
Good thing is:
1. EPS growing pass 3 years.
2. Benefit from USD (if USD strengthen).
3. Estimated PE is 9.72 (good earning for EPS)
4. Debt ratio still in healthy level.
5. 80% IPO fund use to business growth.
The bad things:
1. CEO not Co-founder.
2. Listing in ACE market (requirement listing is more easy than main market, mean more risk involve).
3. Total director salary is only average, but CEO salary is super high.
4. Margin earning will reduce if USD is weaken.
5. Heavily focus on major customer.
6. 13.6% IPO fund use to pay debt.
Conclusions
Overall is above average/normal company. Having good earning with PE9.72x is attractive, however investor should take consideration on USD weaken effect.
2015 sales is lower than 2014, but earning per shares in increased, which mean we should take consideration on USD at weaken period how this company is sulvive. By using the USD rate 2014 (before USD go up) PE is 17.
IPO Price at RM0.80
Good time : RM1.056 (PE15 discount 20%)
Bad time : RM0.56 (PE15 discount 20%)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/04/16
Close to apply: 06/05/16
Listing date: 18/05/16
Fundamental
Market: Ace Market
Price: RM0.80 (par value:RM0.10)
EPS: RM0.051 (7 mth)
P/E: 9.72x (EPS full year is cal by EPS2015 90% +7mth divided by 19mth)
Cash & fixed deposit after IPO: RM0.13 per shares (Cash 50.745mil, Debt 39.202 mil)
NA after IPO: RM0.37
Debt ratio: 0.346 (Debt: RM39.202 mil, Asset: RM143.913 mil)
Dividend policy: 30% of annual net profit
Business
Manufacture of Bluetooth devices
Manufacture of other electronic & preision
Major Customer & Supplier
Major Cutomers: 89.9% (Plantronic 42.4%, Jaybird 43.6%, Sony 21.4%, Canin Opto 0.4%)
Majot Supplier: 45.5% (Cotron Corp 19.9%, WPG Soutth Asia 13.8%, SDKM 11.8%), mostly import.
Main Revenue
North America: 90.85%
Europe: 2.55%
Australia & New Zealand: 0.05%
Asia: 6.02%
Africa: 0.015%
Malaysia: 0.515%
Past Financial Proformance (Revenue)
2013: RM78.559 mil (EPS RM-0.835)
2014: RM234.212 mil (EPS RM0.047)
2015: RM192.518 mil (EPS RM0.088)
2016(7month): RM145.654 mil (EPS RM0.051)
After IPO Sharesholding
James Lim, Joshua Lim, Joel Lim: 67.7%
Director Salary (2016)
Chia Chee Hoong: RM0-50k
James Lim: RM1.5mil-1.55mil
Joshua Lim: RM0-50k
Low Teng Lum: RM0-50k
Leow Chan Khiang: RM0-50k
***summary total directors salary from gross profit & other income: 5.5%-6.4%
Use of fund
Repayment debt: 13.6% (Bad)
Capital Expenditure: 40.1% (Good)
R & D: 13.1% (Normal)
Working Capital: 26.8% (Normal)
Listing Expenses: 6.4% (below average)
Conclusion
Good thing is:
1. EPS growing pass 3 years.
2. Benefit from USD (if USD strengthen).
3. Estimated PE is 9.72 (good earning for EPS)
4. Debt ratio still in healthy level.
5. 80% IPO fund use to business growth.
The bad things:
1. CEO not Co-founder.
2. Listing in ACE market (requirement listing is more easy than main market, mean more risk involve).
3. Total director salary is only average, but CEO salary is super high.
4. Margin earning will reduce if USD is weaken.
5. Heavily focus on major customer.
6. 13.6% IPO fund use to pay debt.
Conclusions
Overall is above average/normal company. Having good earning with PE9.72x is attractive, however investor should take consideration on USD weaken effect.
2015 sales is lower than 2014, but earning per shares in increased, which mean we should take consideration on USD at weaken period how this company is sulvive. By using the USD rate 2014 (before USD go up) PE is 17.
IPO Price at RM0.80
Good time : RM1.056 (PE15 discount 20%)
Bad time : RM0.56 (PE15 discount 20%)
Tuesday, April 26, 2016
LKL International Berhad
IPO (Rating 2.5 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 26/04/16
Close to apply: 04/05/16
Listing date: 16/05/16
Fundamental
Market: Ace Market
Price: RM0.20 (par value:RM0.10)
EPS: RM0.0056 (6 mth)
P/E: 14.18x (EPS full year is cal by EPS2015 90% +6mth divided by 18mth)
Cash & fixed deposit after IPO: RM0.035 per shares (Cash 15.134mil, Debt 9.258mil)
NA after IPO: RM0.13
Debt ratio: 0.146 (Debt: RM9.258 mil, Asset: RM63.585 mil)
Dividend policy: no fixed dividend policy
Syariah Status: (I can't found the status in prospectus)
Business
Manufacturing Medical/Healthcare beds, medical peripherals & accessories.
Main Revenue
Malaysia:74.63%
Oversea: 25.37%
Business Shares (2014)
LKL: 40.5%
Others: 59.5%
Past Financial Proformance
2013: RM28.077 mil (EPS RM0.0141)
2014: RM38.893 mil (EPS RM0.0190)
2015: RM39.039 mil (EPS RM0.0189)
After IPO Sharesholding
Tan Sri Datuk Adzmi Bin Abdul Wahab: 0.08%
Lim Kon Lian & Mok Mei Lan: 41.47%
Tan Chuan Hock: 6.71%
Tevanaigam Randy Chitty: 0.08%
Selma Enolil Binti Mustapha Khalil: 0.08%
Director Salary (2016)
Tan Sri Datuk Adzmi Bin Abdul Wahab: RM0-50k
Lim Kon Lian:RM650k-700k (62 yrs old)
Mok Mei Lan: RM350k-400k (61 yrs old)
Tan Chuan Hock: RM0-50k
Tevanaigam Randy Chitty: RM0-50k
Selma Enolil Binti Mustapha Khalil: RM0-50k
***summary total directors salary from gross profit & other income: 6.296% - 8.18%
Use of fund
Capital Expenditure: 37.61%
Working Capital: 33.65% (Normal)
Repayment debt: 17.68% (Bad)
Listing Expenses: 11.06%
Conclusion
Good thing is:
1. Co-founder still with the company (Lim & Mok)
2. Yearly revenue is increasing but slow down.
3. Debt ratio is in helathy level, Net asset not too far from IPO price.
4. Have market shares 40.5% (how much portion total selling in Malaysia compare other competitor).
The bad things:
1. Director salary is expensive compare to its income.
2. Listing in ACE market.
3. 17.68% of IPO fund use to pay debt.
4. Co-founder at 62 yrs old.
Conclusions
Overall is a normal IPO. Still unable to consider is good IPO. With slow down in revenue & PE 14.18 not consider cheap (M'sia country PE16.6 @ 8/4/16).
Because the company total revenue not consider very huge amount, if the next half year result able to perform better, it will increase a lot the company EPS & PE will drop as well.
Dicertor salary is consider expensive as well.
Price at RM0.20 little bit expensive.
Good time: RM0.28 (PE21)
Bad time: RM0.14 (PE10)
***Reader must aware that RM0.20 IPO price is 'look' cheap, & first day of listing will have a lot of buy & sell, price might up at morning, BUT if you unable to subscribe the IPO, better not to buy at first day.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 26/04/16
Close to apply: 04/05/16
Listing date: 16/05/16
Fundamental
Market: Ace Market
Price: RM0.20 (par value:RM0.10)
EPS: RM0.0056 (6 mth)
P/E: 14.18x (EPS full year is cal by EPS2015 90% +6mth divided by 18mth)
Cash & fixed deposit after IPO: RM0.035 per shares (Cash 15.134mil, Debt 9.258mil)
NA after IPO: RM0.13
Debt ratio: 0.146 (Debt: RM9.258 mil, Asset: RM63.585 mil)
Dividend policy: no fixed dividend policy
Syariah Status: (I can't found the status in prospectus)
Business
Manufacturing Medical/Healthcare beds, medical peripherals & accessories.
Main Revenue
Malaysia:74.63%
Oversea: 25.37%
Business Shares (2014)
LKL: 40.5%
Others: 59.5%
Past Financial Proformance
2013: RM28.077 mil (EPS RM0.0141)
2014: RM38.893 mil (EPS RM0.0190)
2015: RM39.039 mil (EPS RM0.0189)
After IPO Sharesholding
Tan Sri Datuk Adzmi Bin Abdul Wahab: 0.08%
Lim Kon Lian & Mok Mei Lan: 41.47%
Tan Chuan Hock: 6.71%
Tevanaigam Randy Chitty: 0.08%
Selma Enolil Binti Mustapha Khalil: 0.08%
Director Salary (2016)
Tan Sri Datuk Adzmi Bin Abdul Wahab: RM0-50k
Lim Kon Lian:RM650k-700k (62 yrs old)
Mok Mei Lan: RM350k-400k (61 yrs old)
Tan Chuan Hock: RM0-50k
Tevanaigam Randy Chitty: RM0-50k
Selma Enolil Binti Mustapha Khalil: RM0-50k
***summary total directors salary from gross profit & other income: 6.296% - 8.18%
Use of fund
Capital Expenditure: 37.61%
Working Capital: 33.65% (Normal)
Repayment debt: 17.68% (Bad)
Listing Expenses: 11.06%
Conclusion
Good thing is:
1. Co-founder still with the company (Lim & Mok)
2. Yearly revenue is increasing but slow down.
3. Debt ratio is in helathy level, Net asset not too far from IPO price.
4. Have market shares 40.5% (how much portion total selling in Malaysia compare other competitor).
The bad things:
1. Director salary is expensive compare to its income.
2. Listing in ACE market.
3. 17.68% of IPO fund use to pay debt.
4. Co-founder at 62 yrs old.
Conclusions
Overall is a normal IPO. Still unable to consider is good IPO. With slow down in revenue & PE 14.18 not consider cheap (M'sia country PE16.6 @ 8/4/16).
Because the company total revenue not consider very huge amount, if the next half year result able to perform better, it will increase a lot the company EPS & PE will drop as well.
Dicertor salary is consider expensive as well.
Price at RM0.20 little bit expensive.
Good time: RM0.28 (PE21)
Bad time: RM0.14 (PE10)
***Reader must aware that RM0.20 IPO price is 'look' cheap, & first day of listing will have a lot of buy & sell, price might up at morning, BUT if you unable to subscribe the IPO, better not to buy at first day.
Tuesday, March 29, 2016
PECCA GROUP Berhad
IPO (Rating 3.5 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/03/16
Close to apply: 05/04/16
Listing date: 19/04/16
Fundamental
Market: Main Market
Price: RM1.42 (par value:RM0.50)
EPS: RM0.092
P/E: 15.434x
Cash & fixed deposit after IPO: RM0.34 per shares (Cash 65mil, Debt 20.9mil)
NA after IPO: RM0.80
Debt ratio: 0.147 (Debt: RM25.92 mil, Asset: RM176.58 mil)
Dividend policy: 40% PAT
Business
PLeather 100%: Car seat cover, automotive leather, car door trim cover...
PAviation 60%: Aircraft leather seat...
EEmpire 100%: Retail outlet (smart fit, quick fit, car accessory cover)
Main Revenue
Malaysia: 88.71%
Overseas: 11.29% (Netherlands, Australia, Singapore,USA, New Zealand & other less than 1%)
Business Shares
***Based on number of installed-leather-upholstery passenger vehicle units for OEM & PDI market segment
2011: 36.3%
2012: 38.4%
2013: 57.8%
2014: 65.2%
2015: 67.7%
Major Customer: Toyota 34.33%, Fuji 22.99%, Tan Chong 12.46%, Proton 3.86%, Mitsubishi 2.48%
Past Financial Proformance
2012: RM62.1 mil (EPS: RM0.03)
2013: RM66.1 mil (EPS:RM0.0561)
2014: RM99.5 mil (EPS FPE 14:RM0.0671)
2015: RM129.5 mil (EPS FPE15:RM0.0920)
After IPO Sharesholding
Datuk Teoh Hwa Cheng (founder) & Datin Sam Yin Thing : 45.58% (under MRZ)
Director Salary (2016)
Dato' Mohamed Suffian : 50K-100K
Datuk Toeh Hwa Cheng: 550K-600K
Datin Sam Yin Thing : 200K-250K
Tan jin Sun : 350k-400k
Sam Chee Keng : 300k-350k
Dato' Dr Norraesah : 50k-100k
Leong Kam Weng : 50k-100k
***summary salary from Revenue: 1.19%-1.31% (FYE 2015)
Use of fund
Working Capital: 39.74% (Normal)
Repayment debt: 25.20% (Bad)
Puchase machineries: 11.12% (Good)
Contruction add production floor: 7.37% (Good)
Open Retail Outlet: 5.52% (Good)
Establisment business at Thailand: 2.21% (Good)
Expansion of PAviation's business: 1.47% (Good)
Listing Expenses: 7.37% (Normal)
Conclusion
Good thing is:
1. Cash is more than debt after IPO (nett cash company), & debt ratio is low.
2. Founder still is the director of Pecca & now he only 48 years old.
3. Revenue increase every year since 2012 & EPS as well.
4. Largest market shares in Malaysia.
The bad things:
1. PE15.43 consider not expensive not cheap.
2. 25.2% IPO fund use to pay debt.
3. Director fee around 1% from total revenue (expensive).
Conclusions
Overall, it is good company. With the PE15.43 is not expensive but also not cheap, but after add in the potential of growing of business it should be more valuable in future.
Price at RM1.42 should be fair.
Good timing: RM1.64 (add 15%, PE17.8)
Bad timing: RM1.065 (discount 25%, PE11.57)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/03/16
Close to apply: 05/04/16
Listing date: 19/04/16
Fundamental
Market: Main Market
Price: RM1.42 (par value:RM0.50)
EPS: RM0.092
P/E: 15.434x
Cash & fixed deposit after IPO: RM0.34 per shares (Cash 65mil, Debt 20.9mil)
NA after IPO: RM0.80
Debt ratio: 0.147 (Debt: RM25.92 mil, Asset: RM176.58 mil)
Dividend policy: 40% PAT
Business
PLeather 100%: Car seat cover, automotive leather, car door trim cover...
PAviation 60%: Aircraft leather seat...
EEmpire 100%: Retail outlet (smart fit, quick fit, car accessory cover)
Main Revenue
Malaysia: 88.71%
Overseas: 11.29% (Netherlands, Australia, Singapore,USA, New Zealand & other less than 1%)
Business Shares
***Based on number of installed-leather-upholstery passenger vehicle units for OEM & PDI market segment
2011: 36.3%
2012: 38.4%
2013: 57.8%
2014: 65.2%
2015: 67.7%
Major Customer: Toyota 34.33%, Fuji 22.99%, Tan Chong 12.46%, Proton 3.86%, Mitsubishi 2.48%
Past Financial Proformance
2012: RM62.1 mil (EPS: RM0.03)
2013: RM66.1 mil (EPS:RM0.0561)
2014: RM99.5 mil (EPS FPE 14:RM0.0671)
2015: RM129.5 mil (EPS FPE15:RM0.0920)
After IPO Sharesholding
Datuk Teoh Hwa Cheng (founder) & Datin Sam Yin Thing : 45.58% (under MRZ)
Director Salary (2016)
Dato' Mohamed Suffian : 50K-100K
Datuk Toeh Hwa Cheng: 550K-600K
Datin Sam Yin Thing : 200K-250K
Tan jin Sun : 350k-400k
Sam Chee Keng : 300k-350k
Dato' Dr Norraesah : 50k-100k
Leong Kam Weng : 50k-100k
***summary salary from Revenue: 1.19%-1.31% (FYE 2015)
Use of fund
Working Capital: 39.74% (Normal)
Repayment debt: 25.20% (Bad)
Puchase machineries: 11.12% (Good)
Contruction add production floor: 7.37% (Good)
Open Retail Outlet: 5.52% (Good)
Establisment business at Thailand: 2.21% (Good)
Expansion of PAviation's business: 1.47% (Good)
Listing Expenses: 7.37% (Normal)
Conclusion
Good thing is:
1. Cash is more than debt after IPO (nett cash company), & debt ratio is low.
2. Founder still is the director of Pecca & now he only 48 years old.
3. Revenue increase every year since 2012 & EPS as well.
4. Largest market shares in Malaysia.
The bad things:
1. PE15.43 consider not expensive not cheap.
2. 25.2% IPO fund use to pay debt.
3. Director fee around 1% from total revenue (expensive).
Conclusions
Overall, it is good company. With the PE15.43 is not expensive but also not cheap, but after add in the potential of growing of business it should be more valuable in future.
Price at RM1.42 should be fair.
Good timing: RM1.64 (add 15%, PE17.8)
Bad timing: RM1.065 (discount 25%, PE11.57)
Friday, March 4, 2016
Bison Consolidated Berhad
IPO (Rating 3.0 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/03/16
Close to apply: 14/03/16
Listing date: 29/03/16
Fundamental
Market: Main Market
Price: RM1.10 (par value:RM0.20)
EPS: RM0.0589
P/E: 18.67x (SEM 7-eleven PE30.48)
Cash & fixed deposit after IPO: RM0.33 per shares (RM38.324 mil, mil shares)
NA after IPO: RM0.44
Debt ratio: 0.442 (Debt: RM43.95 mil, Asset: RM137.731 mil)
Dividend policy: no formal dividend
IPO Price
***Public/Retail IPO price is RM1.10, however if institutional IPO price is lesser than retail price, it will refund the difference to retail.
Business (Investment Holding)
Press & Convenience Retailing
-myNEWS.com, newplus, MAGBIT, THE FRONT PAGE, WHSmith.
Main Revenue
Mainly in Malaysia.
Revenue Segment
Tobacco: 35.1%
Food & beverage: 37.2%
Print media: 9.6%
Non-food: 4.8%
Consumer Service:1.4%
Advertising: 8.5%
Sale of related companies: 0.9%
Past Financial Proformance
2013: RM157.9 mil (EPS:RM0.0778)
2014: RM182.4 mil (EPS:RM0.0542)
2015: RM217.5 mil (EPS:RM0.0589)
After IPO Sharesholding
DANG TAI WEN, DANG TAI HOCK, DANG TAI LUK: 68.8%
Director Salary (2016)
DTL: 500K-550K (Revenue: 0.25%, PAT: 4%)
DTW: 450K-500K (Revenue: 0.22%, PAT: 3.7%)
DTH: 200K-250K (Revenue: 0.11%, PAT: 1.85%)
Use of fund
Capital Expenditure: 56.4%
Working Capital: 36.3%
Listing Expenses: 7.3%
Conclusion
Good thing is:
1. No IPO use to pay debt, all IPO fund use to it business.
2. Founder still as the major sharesholder (DTL).
3. Debt ratio is in healthy level.
4. Competitor PE30 (7-Eleven, SEM), Malaysia country PE15.5
5. Revenue is increase over the 3 years, however EPS growth rate is slowing down.
The bad things:
1. PE18 is consider high PE, however compare to its competitor 7-eleven (SEM), Bison is more attractive.
2. Having 35.1% revenue come from tobacco (tobacco in Malaysia is always be more expensive over the time).
3. NTA is only 40% from the IPO price.
Conclusions
Overall, this is consider a bit expensive company on the company IPO price. Fair value should be RM0.91
over the years, it main business myNEWS.com have growth fast in major city, & it will expected to slow down. If take consideration on future growth of the company, PE18 consider fair (as smart investor, we should always buy company that undervalued, but not just fair).
Price at PE15.5x : RM0.91
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/03/16
Close to apply: 14/03/16
Listing date: 29/03/16
Fundamental
Market: Main Market
Price: RM1.10 (par value:RM0.20)
EPS: RM0.0589
P/E: 18.67x (SEM 7-eleven PE30.48)
Cash & fixed deposit after IPO: RM0.33 per shares (RM38.324 mil, mil shares)
NA after IPO: RM0.44
Debt ratio: 0.442 (Debt: RM43.95 mil, Asset: RM137.731 mil)
Dividend policy: no formal dividend
IPO Price
***Public/Retail IPO price is RM1.10, however if institutional IPO price is lesser than retail price, it will refund the difference to retail.
Business (Investment Holding)
Press & Convenience Retailing
-myNEWS.com, newplus, MAGBIT, THE FRONT PAGE, WHSmith.
Main Revenue
Mainly in Malaysia.
Revenue Segment
Tobacco: 35.1%
Food & beverage: 37.2%
Print media: 9.6%
Non-food: 4.8%
Consumer Service:1.4%
Advertising: 8.5%
Sale of related companies: 0.9%
Past Financial Proformance
2013: RM157.9 mil (EPS:RM0.0778)
2014: RM182.4 mil (EPS:RM0.0542)
2015: RM217.5 mil (EPS:RM0.0589)
After IPO Sharesholding
DANG TAI WEN, DANG TAI HOCK, DANG TAI LUK: 68.8%
Director Salary (2016)
DTL: 500K-550K (Revenue: 0.25%, PAT: 4%)
DTW: 450K-500K (Revenue: 0.22%, PAT: 3.7%)
DTH: 200K-250K (Revenue: 0.11%, PAT: 1.85%)
Use of fund
Capital Expenditure: 56.4%
Working Capital: 36.3%
Listing Expenses: 7.3%
Conclusion
Good thing is:
1. No IPO use to pay debt, all IPO fund use to it business.
2. Founder still as the major sharesholder (DTL).
3. Debt ratio is in healthy level.
4. Competitor PE30 (7-Eleven, SEM), Malaysia country PE15.5
5. Revenue is increase over the 3 years, however EPS growth rate is slowing down.
The bad things:
1. PE18 is consider high PE, however compare to its competitor 7-eleven (SEM), Bison is more attractive.
2. Having 35.1% revenue come from tobacco (tobacco in Malaysia is always be more expensive over the time).
3. NTA is only 40% from the IPO price.
Conclusions
Overall, this is consider a bit expensive company on the company IPO price. Fair value should be RM0.91
over the years, it main business myNEWS.com have growth fast in major city, & it will expected to slow down. If take consideration on future growth of the company, PE18 consider fair (as smart investor, we should always buy company that undervalued, but not just fair).
Price at PE15.5x : RM0.91
Wednesday, February 17, 2016
CHIN HIN BERHAD
IPO (Rating 3.5 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 18/02/16
Close to apply: 25/02/16
Listing date: 08/03/16
Fundamental
Market: Main Market
Price: RM0.65
EPS: RM0.0395 (at 31/08/2015)
P/E: 10.96x
Cash & fixed deposit after IPO: RM0.33 per shares (RM171.543 mil, 505mil shares)
NA after IPO: RM0.57
Debt ratio: 0.6677 (Debt: RM579.092 mil, Asset: RM867.177 mil)
Dividend policy: no formal dividend
Business (Distribution & Manufacturing)
Distribution: Supplier of Building Materials, Mixed Conrete, Bricks & others.
Manufacturing: Wire Mesh, AAC blocks, jacking pipes, & others.
Main Revenue
Mainly in Malaysia.
Past Financial Proformance
2011: RM1.014 bil (EPS:RM0.0378)
2012: RM1.046 bil (EPS:RM0.0684)
2013: RM1.220 bil (EPS:RM0.0582)
2014: RM1.219 bil (EPS:RM0.0597)
2015: RM0.816 bil (EPS:RM0.0395, ***As until 31/08/2015)
After IPO Sharesholding
Chiau Beng Teik, Chiau Haw Choon, Wong Mee Leng (3 of them use Divine Invention to hold Chin Hin shares) : indirect holding 60%
Director Salary (2016)
***For estimation only for full year revenue to calculate director salary, Revenue 2015 estimate RM1.225 bil, Profit after tax 2015 Rm30mil)
Datuk Chiau Beng Teik: RM150k-200k (Revenue:0.00016%, PAT: 0.0067%)
Chiau Haw Choon: RM1.15mil-1.2mil (R:0.00098%, PAT:4%)
Lee hai Peng: RM500k-550k (R:0.00045%, PAT:0.0183%)
Datuk Dr Nik Norzul Thani: RM100-150k (R:0.00012%, PAT:0.005%)
Yeoh chin Hoe: RM0-50k (R: 0.00004%, PAT:0.00013%)
Datuk Cheng Lai Hock: RM0-50k (R: 0.00004%, PAT:0.00013%)
Use of fund
Purchase new plant, equipment & machineries: 36.5%
Pay Debt: 36.5%
Working Capital: 17.2%
Listing Expenses: 9.8%
Conclusion
Good thing is:
1. Director hold 60% of the company shares & director is the founder of the company.
2. After IPO cash in hand is RM0.33
3. Debt ratio still in healhty level, PE is 10.96x, & NA after IPO 0.57 near to IPO price 0.65.
4. Listing in main board.
The bad things:
1. 36.5% IPO fund use to pay debt.
2. Slow down of property, might slow down the company business.
3. Income mainly from Malaysia (have some income from Singapore & Hong Kong, but not much).
4. EPS from 2011-2015 is stable now without good improvement (slow down from 2013-2015, might because of slow down in property industry).
Conclusions
Overall, this is not a expensive company, since our country PE is 15.6x, & in the enviroment of property slow down in 2015 still able to mainatin PE10.96x, which is good.
One sad point is using IPO fund to pay debt.
Price at PE15.6x : RM0.92
Discount 20%-25% to PE15.6x: RM0.0.69-RM0.74 (do not buy any price above this level)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 18/02/16
Close to apply: 25/02/16
Listing date: 08/03/16
Fundamental
Market: Main Market
Price: RM0.65
EPS: RM0.0395 (at 31/08/2015)
P/E: 10.96x
Cash & fixed deposit after IPO: RM0.33 per shares (RM171.543 mil, 505mil shares)
NA after IPO: RM0.57
Debt ratio: 0.6677 (Debt: RM579.092 mil, Asset: RM867.177 mil)
Dividend policy: no formal dividend
Business (Distribution & Manufacturing)
Distribution: Supplier of Building Materials, Mixed Conrete, Bricks & others.
Manufacturing: Wire Mesh, AAC blocks, jacking pipes, & others.
Main Revenue
Mainly in Malaysia.
Past Financial Proformance
2011: RM1.014 bil (EPS:RM0.0378)
2012: RM1.046 bil (EPS:RM0.0684)
2013: RM1.220 bil (EPS:RM0.0582)
2014: RM1.219 bil (EPS:RM0.0597)
2015: RM0.816 bil (EPS:RM0.0395, ***As until 31/08/2015)
After IPO Sharesholding
Chiau Beng Teik, Chiau Haw Choon, Wong Mee Leng (3 of them use Divine Invention to hold Chin Hin shares) : indirect holding 60%
Director Salary (2016)
***For estimation only for full year revenue to calculate director salary, Revenue 2015 estimate RM1.225 bil, Profit after tax 2015 Rm30mil)
Datuk Chiau Beng Teik: RM150k-200k (Revenue:0.00016%, PAT: 0.0067%)
Chiau Haw Choon: RM1.15mil-1.2mil (R:0.00098%, PAT:4%)
Lee hai Peng: RM500k-550k (R:0.00045%, PAT:0.0183%)
Datuk Dr Nik Norzul Thani: RM100-150k (R:0.00012%, PAT:0.005%)
Yeoh chin Hoe: RM0-50k (R: 0.00004%, PAT:0.00013%)
Datuk Cheng Lai Hock: RM0-50k (R: 0.00004%, PAT:0.00013%)
Use of fund
Purchase new plant, equipment & machineries: 36.5%
Pay Debt: 36.5%
Working Capital: 17.2%
Listing Expenses: 9.8%
Conclusion
Good thing is:
1. Director hold 60% of the company shares & director is the founder of the company.
2. After IPO cash in hand is RM0.33
3. Debt ratio still in healhty level, PE is 10.96x, & NA after IPO 0.57 near to IPO price 0.65.
4. Listing in main board.
The bad things:
1. 36.5% IPO fund use to pay debt.
2. Slow down of property, might slow down the company business.
3. Income mainly from Malaysia (have some income from Singapore & Hong Kong, but not much).
4. EPS from 2011-2015 is stable now without good improvement (slow down from 2013-2015, might because of slow down in property industry).
Conclusions
Overall, this is not a expensive company, since our country PE is 15.6x, & in the enviroment of property slow down in 2015 still able to mainatin PE10.96x, which is good.
One sad point is using IPO fund to pay debt.
Price at PE15.6x : RM0.92
Discount 20%-25% to PE15.6x: RM0.0.69-RM0.74 (do not buy any price above this level)
Monday, January 4, 2016
RANHILL HOLDING BERHAD
IPO (Rating 2 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 31/12/15
Close to apply: 29/01/16
Listing date: 18/02/16
Fundamental
Market: Main Market
Price: RM1.70 (RM1.70 is retail price, if later institutional price less than retail price, bal will refund)
EPS: RM0.10
P/E: 17X
NA after IPO: RM0.85
Debt ratio: 0.753 (Debt: RM3.071 bil, Asset: RM4.077 bil)
Dividend policy: 70% dividend if company profitable
Business (Power & Water)
Power generation, water supply services (operate water & wastewater treatment, water utility assets)
Main Revenue
Power:22.7%
Environment: 77.3%
Past Financial Proformance
2012: RM1.158 bil (EPS:RM0.10)
2013: RM1.199 bil (EPS:RM0.09)
2014: RM1.294 bil (EPS:RM0.10)
2015 (6 mth): RM0.628 bil (EPS:RM0.05)
After IPO Sharesholding
Tan Sri Hamdan: 31.6%
Tan Sri Azman: 5%
Use of fund
Repayment of RPI's outstanding : 34.51%
Repayment of Sukuk: 15.69%
Settlement of RWT (cayman) Acquisition: 19.61%
Working Capital: 18.43%
Investment into RWT (Cayman) water business in China: 11.76%
Conclusion
Good thing is:
1. 77.3% of the comapany income come from enviroment (water section), which is less sensitive to raw material cost. This will provide partial stable income to the company.
2. Debt ratio still consider healthy. Not more than their assets.
3. The concept of the company business is to provide a recession prove income (utilities).
4. After the IPO, Tan Sri Hamdam still holding 31.6% of the company shares.
The bad things:
1. 69.81% is repayment of outstanding (in other similar meaning is debt).
2. The PE17 is consider high, because our country PE is only PE16.
Conclusions
IPO to pay debt is always not a good thing for investor. Try to AVOID is IPO. However, if the IPO able to drop until PE13 (RM1.30) we can consider to buy some to invest, who's know one day might become like tenaga.
The IPO price RM1.70 is consider very expensive, because we don't want our money to help them pay debt. RM1.30 is just fair.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 31/12/15
Close to apply: 29/01/16
Listing date: 18/02/16
Fundamental
Market: Main Market
Price: RM1.70 (RM1.70 is retail price, if later institutional price less than retail price, bal will refund)
EPS: RM0.10
P/E: 17X
NA after IPO: RM0.85
Debt ratio: 0.753 (Debt: RM3.071 bil, Asset: RM4.077 bil)
Dividend policy: 70% dividend if company profitable
Business (Power & Water)
Power generation, water supply services (operate water & wastewater treatment, water utility assets)
Main Revenue
Power:22.7%
Environment: 77.3%
Past Financial Proformance
2012: RM1.158 bil (EPS:RM0.10)
2013: RM1.199 bil (EPS:RM0.09)
2014: RM1.294 bil (EPS:RM0.10)
2015 (6 mth): RM0.628 bil (EPS:RM0.05)
After IPO Sharesholding
Tan Sri Hamdan: 31.6%
Tan Sri Azman: 5%
Use of fund
Repayment of RPI's outstanding : 34.51%
Repayment of Sukuk: 15.69%
Settlement of RWT (cayman) Acquisition: 19.61%
Working Capital: 18.43%
Investment into RWT (Cayman) water business in China: 11.76%
Conclusion
Good thing is:
1. 77.3% of the comapany income come from enviroment (water section), which is less sensitive to raw material cost. This will provide partial stable income to the company.
2. Debt ratio still consider healthy. Not more than their assets.
3. The concept of the company business is to provide a recession prove income (utilities).
4. After the IPO, Tan Sri Hamdam still holding 31.6% of the company shares.
The bad things:
1. 69.81% is repayment of outstanding (in other similar meaning is debt).
2. The PE17 is consider high, because our country PE is only PE16.
Conclusions
IPO to pay debt is always not a good thing for investor. Try to AVOID is IPO. However, if the IPO able to drop until PE13 (RM1.30) we can consider to buy some to invest, who's know one day might become like tenaga.
The IPO price RM1.70 is consider very expensive, because we don't want our money to help them pay debt. RM1.30 is just fair.