IPO Rating ( 2.00 star out of 5.0)Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 18/04/2018
Close to apply: 26/04/2018
Listing date: 11/05/2018
Share Capital
Market Cap: RM101.26 mil
Shares Issue to sell: 43.207 mil shares
Enlarged Issued Shares: 166 mil shares
Business
Logistic services provider (sea freight, continer haulage, air freight, freight forwarding, warehousing & marine insurance services)
Sea Freight: 59.0%
Container Haulage: 34.2%
Others: 6.8%
Revenue on Geo
Msia: 91.3%
Oversea: 8.7%
Fundamental
Market: ACE Market
Price: RM0.61 (eps: RM0.0361)
P/E & ROE: PE16.9, ROE17.25%
Cash & fixed deposit after IPO: RM0.0459 per shares
NA after IPO: RM0.39
Copyright: http://lchipo.blogspot.my/
Total debt to current asset after IPO: 1.45 (Debt: 37.064 mil, Non-Current Asset: 76.846 mil, Current asset: 25.557 mil)
Dividend policy: suggest 30% profit after tax
Financial
Trade Receivable: 59.4 days
Trade payable: 29.8 days
Past Financial Proformance (Revenue, EPS)
2017: RM85.505 mil (eps: 0.0361)
2016: RM71.381 mil (eps: 0.0281)
2015: RM78.693 mil (eps: 0.0196)
Competitor PE
Freight managament holding berhad: 9.7 (mkt cap 217.8mil)
Tasco: 11.4 (mkt cap: 362 mil)
Century: 20.1 (mkt cap: 305.5 mil)
Xinhwa: 21.9 (mkt cap: 246.2 mil)
Complete logistic: 13.4 (mkt cap: 89.1 mil)
Harbour-Link: 10.1 (mkt cap: 298.3 mil)
Tri-Mode: 16.9 (mkt cap: 101.3 mil)
Net Profit Margin
2017: 7.01%
2016: 6.54%
2015: 4.14%
After IPO Sharesholding
Dato' Hew: 50.1%
Datin Sim: 20.3%
Director Remuneration (from gross profit 2017)
Dato' Hew: RM1.349 mil
Datin Sim: RM0.771 mil
Dato' Markiman: RM52k
Chiam Tau Meng: RM27k
Wai Wah Kwan: RM27k
Total director remuneration from gross profit: 11.44%
Use of fund
Construction of HQ & Distribution Hub: 56.9%
Purchase prime mover & trailers: 1.9%
Pay debt: 19%
Working capital: 8.9%
Listing expenses: 13.3%
Conclusion
Good thing is:
1. Is a sunrise industry since world trade more transparent.
2. PE16.9 still consider acceptable rang & ROE17.25% is good.
3. Revenue & EPS have some increament.
The bad things:
1. Ace market (less regulated check)
2. Current asset unable to support total debt.
3. Director fee is too expensive.
4. Use 19% IPO fund to pay debt.
5. Net profit margin is still below 10%
Conclusions
Overall the industry is a profitable business & it is in sunrise industry. However business cost pull down the company revenue, copyright: http://lchipo.blogspot.my/.
With market uncertainty we might able to see lower price after IPO.
IPO Price: RM0.61
Good time: RM0.47 (PE13)
Bad time: RM0.29 (PE8)