IPO Rating (3.75 star out of 5.0)Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/05/2018
Close to apply: 07/06/2018
Listing date: 20/06/2018
Share Capital
Market Cap: RM710 mil
Shares Issue to sell: 18.655 mil shares
Enlarged Issued Shares: 134.428 mil shares
Business
Design, Develop, Manufacture & Sale WLCSP storting machine (use in semiconductor industry)
Revenue on Geo (2017)
Southeast Asia 8.77%
Northeast Asia 63.70%
North Atlantic 10.78%
Malaysia 16.75%
Fundamental
Market: Main Market
Price: RM1.42 (eps: RM0.1186)
P/E & ROE: PE11.97, ROE18.7%
Cash & fixed deposit after IPO: RM0.38 per shares
NA after IPO: RM0.62
Total debt to current asset after IPO: 0.1189 (Debt: 31.873 mil, Non-Current Asset: 74.459 mil, Current asset: 267.983 mil)
Dividend policy: suggest 20% profit after tax
Financial
Trade Receivable: 75 days
Trade payable: 67 days
Past Financial Proformance (Revenue, EPS)
2017: RM173.321 mil (eps: 0.1186)
2016: RM57.089 mil (eps: 0.0322)
2015: RM105.143 mil (eps: 0.0818)
Competitor PAT Margin %
ASM Pacific: 4.49%
Daitron: 3.58%
Muehlbauer: 31.01%
Tesec: 10.4%
Mi Equipment: 34.21%
Net Profit Margin
2017: 34.22%
2016: 28.16%
2015: 38.91%
After IPO Sharesholding
Foo Hee Chaik: 0.06%
Oh Kuang Eng: 68%
Koay Huck Khim: 0.06%
Ong Tee Ni: 0.36%
Lee Boon Leng: 0.06%
Tan Boon Hoe: 0.06%
Director Remuneration (from gross profit 2017)
Foo Hee Chaik: 63k
Oh Kuang Eng: 1.711 mil
Koay Huck Khim: 0.292 mil
Ong Tee Ni: 0.226 mil
Lee Boon Leng: 45k
Tan Boon Hoe: 45k
Total director remuneration from gross profit: 2.55%
Use of fund
New factory & office (Bayan Lepas): 34.06%
New factory & office (Batu Kawan): 39.29%
R&D: 3.14%
Working Capital: 19.27%
Listing Expenses: 4.24%
Conclusion
Good thing is:
1. Semiconductor still is a sunrise industry.
2. PE11.4 still consider acceptable rang & ROE18.7% is good.
3. PAT margin is good.
4. Debt ratio is healthy.
5. Director fee is healthy.
6. 95.76% of IPO fund use to develop business.
The bad things:
1. Other compeitor PAT margin is around 10% or below. After IPO need to maintain high PAT margin.
2. Timing of listing in June 2018 might in market low period.
3. Technology changing is fast in this industry.
4. Customer repeat order will take years time because their product is selling machines, so they have to keep find new order.
Conclusions
Overall, this is a good IPO. Should able to see the company growth faster after 2 years time.
Investment will have good return on this company.
IPO Price: RM1.42
Good time: RM1.90 (PE16)
Bad time: RM0.92 (PE8)