IPO (Rating 2.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 05/05/2017
Close to apply: 15/05/2017
Listing date: 25/05/2017
Share Capital
Market Cap: RM133.814 mil
Public Issue: 107.051 mil shares
Enlarged Issued Shares: 525.259 mil shares
Core Business & Geo
Business: Construction Industry, General civil engineering, building general works
Geo : Klang Valley 83.27%, Johor 17.5%
Major Customer
2017: Mitraland (38.69%), Ecoworld (27.44%)
2016: UEM Sunrise BHD, Tropicana Corp BHD, Ecoworld, Plenitude BHD.
Fundamental
Market: Ace Market
Price: RM0.25
EPS: RM0.0238
P/E: 10.5
Cash & fixed deposit after IPO: RM0.074 per shares
NA after IPO: RM0.15
Debt ratio after IPO: 0.65 (Debt: 150.822 mil, Non-Current Asset:68.712 mil, Current asset: 161.068mil)
Dividend policy: nil
ROE: 16.1%
Order Book (RM445.907)
2019: RM48 mil
2018: RM171 mil
2017: RM226 mil
Financial
Trade Receivable: 97 days
Trade payable: 74 days
Cashfow: -9.680mil (2014), -9.625mil (2015), 0.730mil (2016)
Past Financial Proformance (Revenue)
2016: RM257 mil (eps: 0.0238)
2015: RM271 mil (eps: 0.0215)
2014: RM245 mil (eps: 0.0198)
Net Profit Margin
2016: 4.95%
2015: 4.23%
2014: 4.31%
After IPO Sharesholding
Lim Pang Kiam: 0.37%
Lim Ooi Joo: 33.88%
Teo Hock Choon: 8.8%
Ahmad Bin Awi: 12.68%
Chau Yik Mun: 2.41%
Yap Yoon Kong: 4.52%
Dato' Sia Thian Sang: 0.37%
Director Remuneration (from gross profit 2016)
Lim Pang Kiam: RM0-50k
Lim Ooi Joo: RM450k-500k
Teo Hock Choon: RM400k-450k
Ahmad Bin Awi: RM100k-150k
Chau Yik Mun: RM350k-400k
Yap Yoon Kong: RM0-50k
Dato' Sia Thian Sang: RM0-50k
Total director remuneration from gross profit: 10.22% - 12.97%
Use of fund
Capital Expenditure: 18.68%
Repayment bank borrowing: 33.63%
Working Capital: 35.73%
Listing Expenses: 11.96%
Conclusion
Good thing is:
1. PE is around 10, Debt is healthy, ROE more than 15%.
2. Average Trade receiveable able to maintain less than 100 days.
3. 3 years PAT showing it qualified for main board.
The bad things:
1. No clear dividend policy
2. Director remuneration is expensis
3. USE IPO fund pay debt, 33.62
Conclusions
Is a normal IPO. The interesting part is that they qualified to IPO in market, but now IPO in Ace market.
IPO Price: RM0.25
Good time: RM0.35 (PE15)
Bad time: RM0.17 (PE7)