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Date
Open to apply: 08/02/2018
Close to apply: 23/02/2018
Listing date: 08/03/2018
Share Capital
Market Cap: RM144.078 mil
Shares Issue to sell: 227.492 mil shares (Open to public: 151.661 mil shares)
Enlarged Issued Shares: 758.308 mil shares
Business
Distibution manufacturing & provision of enginnering services of inspection, test, measuring, analytical & automated handling equipment.
Market (Revenue from)
Msia: 47.1%
Asean: 50.7%
Fundamental
Market: ACE Market
Price: RM0.19 (eps: 0.0156)
P/E & ROE: PE9.13, ROE21.6%
Cash & fixed deposit after IPO: RM0.05 per shares
NA after IPO: RM0.09
Total Debt to current asset after IPO: 0.526 (Debt: 50.023 mil, Non-Current Asset: 28.150 mil, Current asset: 94.989 mil)
Dividend policy: -
Competitor PE & ROE
QES: PE9.13, ROE21.6%
Vitrox: PE33.74, ROE25.74
Elsoft: PE22.45, ROE29.44
Vis: PE11.94, ROE21.46
MMSV: PE11.84, ROE35.98
Competitor PAT margin
QES: 7.4%
Elsoft: 48.9%
MMSV: 26.8%
Vis: 15.6%
Vitrox: 27.7%
Financial
Trade Receivable: 65
Trade payable: 75
Past Financial Proformance (Revenue, EPS before IPO)
2017 (until sep): RM139.634 mil (eps: 0.0156)
2016: RM137.285 mil (eps: 0.0125)
2015: RM128.000 mil (eps: 0.0094)
2014: RM105.381 mil (eps: 0.0069)
Net Profit Margin
2017: 9.1%
2016: 7.4%
2015: 5.8%
2014: 5.2%
After IPO Sharesholding
Chew Ne Weng: 41.1%
Liew Soo Keang: 28.9%
Director Remuneration (from gross profit 2017)
Adnan Bin Zainol: RM0-50k
Chew Ne Weng: RM1.05 mil - 1.1 mil
Liew Soo Keang: RM0.95 mil - 1.0 mil
Chia Gek Liang: RM0-50k
Hoh Chee Mun: RM0-50k
Total director remuneration from gross profit: 2.98% - 3.30%
Use of fund
Product development: 16.8%
Working capital: 11.3%
Pay debt: 24.3%
Capital expenditure: 37.2%
Listing expenses: 10.4%
Conclusion
Good thing is:
1. PE9 & ROE21 with acceptable level.
2. Revenue increasing over 4 years.
3. Founder still is the biggest sharesholder.
4. Director fee is acceptable.
5. Consider in a sunrise industry.
The bad things:
1. Listing on ACE market.
2. Net profit margin is less then 15%.
3. IPO fund 24.3% use to pay debt.
4. Competitor have better ROE, better PAT margin.
Conclusions
It is a meet fair value IPO. However, QES is not the best choice compare among their competitor.
IPO Price: RM0.19
Good time: RM0.27 (PE13)
Bad time: RM0.145 (PE7)