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Date
Open to apply: 13/02/2018
Close to apply: 22/02/2018
Listing date: 06/03/2018
Share Capital
Market Cap: RM145.000 mil
Shares Issue to sell: 53 mil shares (Open to public: 100 mil shares)
Enlarged Issued Shares: 500 mil shares
Business
Design, Manufacture, & sale of home furniture products.
Market (Revenue from)
Japan: 21.38%
US: 18.96%
Australia: 15.69%
UK: 12.37%
other 45 countries: 31.6%
Fundamental
Market: ACE Market
Price: RM0.29 (eps til sep: 0.0289)
P/E & ROE: PE9.42, ROE26.77%
Cash & fixed deposit after IPO: RM0.022 per shares
NA after IPO: RM0.12
Total Debt to current asset after IPO: 0.40 (Debt: 38.374 mil, Non-Current Asset: 62.619 mil, Current asset: 33.305 mil)
Dividend policy: -
Competitor PAT margin & ROE%
Wegmans: 18.24%, 26.77%
Latitude: 8.79%, 12.32%
Liihen: 11.73%, 27.69%
Poh Huat: 8.74%, 19.23%
Jaycorp: 8.58% 15.56%
SYF: 7.7%, 10.88%
Homeriz: 18.28%, 23.32%
Financial
Trade Receivable: 18 days
Trade payable: 62 days
Ave inventory turover: 70 days
Past Financial Proformance (Revenue, EPS before IPO)
2017 (until sep): RM63.372 mil (eps: 0.0289)
2016: RM85.636 mil (eps: 0.0383)
2015: RM66.216 mil (eps: 0.0324)
2014: RM39.416 mil (eps: 0.0075)
Net Profit Margin
2017: 18.24%
2016: 17.92%
2015: 17.87%
2014: 19.56%
After IPO Sharesholding
Chan Wan Seong: 0.02%
Keh Wee Kiet: 35%
Collin Law Kok Lim: 35%
Maziah binti Md Yamin: 0.02%
Chan Foong Ping: 0.02%
Director Remuneration (from gross profit 2017)
Chan Wan Seong: RM0-50k
Keh Wee Kiet: RM350k-400k
Collin Law Kok Lim: RM350k-400k
Maziah binti Md Yamin: RM0-50k
Chan Foong Ping: RM0-50k
Total director remuneration from gross profit: 2.8% - 3.8%
Use of fund
New factories,office,showroom,hostel: 37.93%
New machineries & equipment: 37.93%
Working capital: 12.07%
Listing expenses: 12.07%
Conclusion
Good thing is:
1. PE9 & ROE26 is acceptable level.
2. Revenue increasing over 4 years.
3. Founder still is the biggest sharesholder.
4. Director fee is acceptable.
The bad things:
1. Listing on ACE market.
2. Current strong MYR will effected the company sale.
3. Consider in a mature industry.
4. Too many competitor in the same industry.
Conclusions
Is a good IPO, but the timing is not encourage. The strong MYR, will effect revenue heavily.
Investor might have chance to buy lower then IPO price.
IPO Price: RM0.29
Good time: RM0.40 (PE13)
Bad time: RM0.18 (PE6)