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Open to apply: 05/03/2018
Close to apply: 12/03/2018
Listing date: 27/03/2018
Share Capital
Market Cap: RM63.750 mil
Shares Issue to sell: 162.50 mil shares (Open to public: 125 mil shares)
Enlarged Issued Shares: 500 mil shares
Business
Construction Services
Residential: 35.05%
Mixed Development: 31.09%
Commercial: 33.86%
Fundamental
Market: ACE Market
Price: RM0.35 (eps til Oct:0.0401)
P/E & ROE: PE8.73, ROE64%
Cash & fixed deposit after IPO: RM 0.0266 per shares
NA after IPO: RM0.13
Total debt to current asset after IPO: 0.799 (Debt: 101.112 mil, Non-Current Asset: 12.087 mil, Current asset: 126.471 mil)
Dividend policy: 30%
Financial
Trade Receivable: 23 days
Trade payable: 24 days
Past Financial Proformance (Revenue, EPS before IPO)
2017 (until Oct): RM240.665 mil (eps: 0.0401)
2016: RM276.906 mil (eps: 0.0642)
2015: RM169.539 mil (eps: 0.0604)
2014: RM 86.628 mil (eps: 0.0301)
Net Profit Margin
2017: 8.33%
2016: 5.81%
2015: 4.23%
2014: 3.78%
Order Book Completion Forecast
31/12/2018: RM379.411 mil
31/12/2019: RM441.459 mil
31/12/2020: RM 34.024 mil
After IPO Sharesholding
Tan Sri Dato' Ir. Hj. Zaini Bin Omar: 0.06%
Cheah Ham Cheia: 51.80%
Alexander Lo Tzone Leong: 22.2%
Cheah Jun Kai: -
Datuk Chia Lui Meng: 0.05%
Kow Poh Gek: 0.05%
Director Remuneration (from gross profit 2017)
Tan Sri Dato' Ir. Hj. Zaini Bin Omar: 64k
Cheah Ham Cheia: 1.127 mil
Alexander Lo Tzone Leong: 1.185 mil
Cheah Jun Kai: 225k
Datuk Chia Lui Meng: 46k
Kow Poh Gek: 49k
Total director remuneration from gross profit: 7.2%
Use of fund
Capital Expenditure: 56.39%
Working capital (pay debt): 34.06%
Working capital (Salaries): 1.55%
Listing Expenses: 8.0%
Conclusion
Good thing is:
1. 2018 & 2019 order book able to let the company continue to sustain profit.
2. Revenue, Net profit margin,EPS is increasing.
3. Director fee is acceptable.
The bad things:
1. Listing on ACE market.
2. Director fee is expensive.
3. Profit margin is still below 10%.
4. Too many competitor in the same industry.
5. Property segment still in weak stage, will effected their business as well.
6. Past 3 year revenue is highly reliance on major customers (Perdana Parkcity S/B, Trans Res Crop S/B, Etiqa Ins Bhd).
Conclusions
Is a average IPO. Still will have some growth on 2 years time.
IPO Price: RM0.35
Good time: RM0.52 (PE13)
Bad time: RM0.24 (PE6)