IPO (Rating 3.0 star out of 5.0)
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Date
Open to apply: 28/04/2017
Close to apply: 08/05/2017
Listing date: 22/05/2017
Share Capital
Market Cap: RM72.8 mil
Public Issue: 21 mil shares
Enlarged Issued Shares: 130 mil shares
Core Business
Structured Cabling Work: 19.94%
ELV system: 59.43%
IT services: 24.48%
*will have 103%, 3% is consolidate adjustment
Revenue
Malaysia: 99.99%
Indonesia: 0.01%
Major Customer
Daiman Landmark Hotel Sdn Bhd: 0.02%
Kimlun Sdn Bhd: 11.67%
Fundamental
Market: Ace Market
Price: RM0.56
EPS: RM0.0493 (Based on total shares after IPO 130mil shares, instead of acct record 105.888 mil shares)
P/E: 11.35
Cash & fixed deposit after IPO: RM0.108 per shares
NA after IPO: RM0.28
Debt ratio after IPO: 0.229 (Debt: 10.777 mil, Asset:47.130 mil, Current asset: 41.525 mil)
Dividend policy: 30% of PAT
ROE: 17.63% (2016)
Financial
Receivable within credit period: RM10.817 mil
Receivable exceed credit preiod: RM1.397 mil
Trade payable with credit period: RM4.972 mil
Trade payable exceed credit period: RM2.22 mil
Past Financial Proformance (Revenue)
2016: RM 50.844 mil (eps: 0.0605)
2015: RM39.591 mil (eps: 0.00598)
2014: RM34.065 mil (eps: 0.0412)
Net Profit Margin
2016: 12.85%
2015: 14.78%
2014: 12.61%
After IPO Sharesholding
Datuk Tan Kok Hong: 0.19%
Tay Hong Sing (co-founder): 25.08%
Tan Boon Siang (co-founder): 25.08%
Lim Ming Koo: 0.12%
Loo Yong Peng: 0.12%
Director Remuneration (from gross profit 2016)
Datuk Tan Kok Hong: RM0-50k
Tay Hong Sing: RM250k-300k
Tan Boon Siang: RM250k-300k
Lim Ming Koo: RM0-50k
Loo Yong Peng: RM0-50k
Total director remuneration from gross profit: 4.1% - 6.15%
Use of fund
Working Capital -Purchase of equipment for projects: 44.7%
R&D expenditure: 4.3%
Repayment of bank borrowing: 25.5%
Listing expenses: 25.5%
Conclusion
Good thing is:
1. PE still below our country PE16.5
2. Debt ratio after IPO consider healty.
3. Have clear dividend policy.
4. ROE is 17.63% is good.
5. Past 3 year revenue continue to grow.
6. Only have 21 mil shares is market (easy to push during first day).
7. Co-founder still remain in the company.
The bad things:
1. Director fee is expensive. More than 3% from the gross profit, however 300k for director is not high, only can say revenue low & cost is high.
2. IPO fund 25.5% pay debt, 25.5% pay to broker for listing expenses. Total of 51% IPO fund use for non-encourage business growth usesage.Too sad for lisiting expenses in % is too high.
3. Lisiting in ACE market.
Conclusions
It can consider above average IPO.
IPO Price: RM0.56
Good time: RM0.73 (PE15)
Bad time: RM0.39 (PE8)