Nova Wellness Group Berhad

IPO Rating ( 3.25 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 28/06/2018
Close to apply: 09/07/2018
Listing date: 20/07/2018

Share Capital
Market Cap: RM174.759 mil
Shares Issue to sell: 81.66 mil shares
Enlarged Issued Shares: 317.743 mil shares

Business
Health care product (mostly distribution on pharmacies)

Revenue on Geo (2017)
M'sia: 96.1%
Others: 3.9%

Fundamental
Market: Ace Market
Price: RM0.55 (eps: RM0.0431)
P/E & ROE: PE12.76, ROE25.64%
Cash & fixed deposit after IPO: RM0.0416 per shares
NA after IPO: RM0.17
Total debt to current asset after IPO: 0.3435 (Debt: 12.703 mil, Non-Current Asset: 36.980 mil, Current asset: 29.187 mil)
Dividend policy: suggest 30% audited profit

Financial
Trade Receivable: 125 days
Trade payable: 24 days

Past Financial Proformance (Revenue, EPS)
FPE2017 (6mth): RM12.486 (eps: 0.05)
2017: RM24.541 mil (eps: 0.1466)
2016: RM24.270 mil (eps: 0.1448)
2015: RM22.847 mil (eps: 0.1313)

Competitor
Ahealth: PE16.51
Biohldg: PE17.05, 39.5% (gross profit margin)
CCMBIO: PE19.36
Herbal Science: 46.6% (gross profit margin)
BioFact: 30.4% (gross profit margin)

Net Profit Margin
2017: 55.9%
2016: 55.8%
2015: 53.7%

After IPO Sharesholding
Dr Abdul Manaf: 0.09%
Phang Nyie Lin: 7.95%
Tan Sok Mooi: 42.50%
Phang Yeen Nung: 7.95%
Phang Yeen Aun: 7.95%

Director Remuneration (from gross profit 2017)
Dr Abdul Manaf: 36k
Phang Nyie Lin: 111k
Phang Yeen Nung: 140k
Phang Yeen Aun: 140k
Dr Munavvar: 36k
Sulaiman: 36k
Sim Seng Loong: 36k
Tan Mio Har: 36k
Total director remuneration from gross profit: 3.25%

Use of fund
New GMP-Compliant Production Facility: 36.7%
R&D: 25.8%
Expand retail market: 11.2%
Working capital: 20.5%
Lisitng Expenses: 5.8%

Conclusion
Good thing is:
1. PE still in acceptable level & Debt in healthy level.
2. ROE is attractive & net margin profit is attractive.
3. Have clear dividend poslicy.
4. Director fee is acceptable level.
5. Three year revenue is increasing.

The bad things:
1. Listing in Ace Market.
2. Trade receivable is 125days (4 month) instead of 2 month company policy credit term.
3. High depend on local market.
4. High competitive enviroment.
5. Having import business (USD stronger now USD4.03 will increase the company cost).

Conclusions
Overall is a good IPO. However IPO timing might not too encourage as USD is stronger which will increase the company cost in short-term. However it should be a good investment for long term investment.

IPO Price: RM0.55
Good time: RM0.73(PE17)
Bad time: RM0.345 (PE8)

Radiant Globaltech Berhad

IPO Rating ( 1.25 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 28/06/2018
Close to apply: 10/07/2018
Listing date: 24/07/2018

Share Capital
Market Cap: RM120 mil
Shares Issue to sell: 128.080 mil shares
Enlarged Issued Shares: 525.200 mil shares

Business
Retail business system (Processing payment POS, inventory management, CMS for supermarket, hypermarket, Grocery store & other)

Revenue on Geo (2017)
M'sia: 82.44%
Oversea: 17.56%

Fundamental
Market: Ace Market
Price: RM0.23 (eps: RM0.0.0179)
P/E & ROE: PE12.85, ROE12.93%
Cash & fixed deposit after IPO: RM0.022 per shares
NA after IPO: RM0.10
Total debt to current asset after IPO: 0.44 (Debt: 25.446 mil, Non-Current Asset: 22.439 mil, Current asset: 57.282 mil)
Dividend policy: -

Financial
Trade Receivable: 103 days
Trade payable: 93 days

Past Financial Proformance (Revenue, EPS)
2017: RM80.783 mil (eps: 0.0179)
2016: RM76.847 mil (eps: 0.0238)
2015: RM66.402 mil (eps: 0.016)

Competitors
At least 32 difference competitor with revenue range 1.348mil-1.166bil.
Radiant will be consider small company in this industry.

Net Profit Margin
2017: 8.80%
2016: 12.32%
2015: 9.56%

After IPO Sharesholding
Yap Ban Foo (indirect): 32.13%
Yap Sin Sang (indirect): 26.08%
Yap Poh Keong (indirect): 7.56%

Director Remuneration (from gross profit 2017)
Yap Ban Foo: RM1.297 mil
Yap Sin Sang: RM1.163 mil
Yap Poh Keong: RM0.856 mil
Total director remuneration from gross profit: 9.89%

Use of fund
Business & capital expansion: 39.38%
Working capital: 16.15%
Expansion of retail software business: 10.18%
Pay debt: 22.41%
Listing expenses: 11.88%

Conclusion
Good thing is:
1. Three year revenue increase.
2. Debt ratio consider average.

The bad things:
1. Director fee is expensive.
2. Competitors in market is too many, & many is stroger then Radiant.
3. Use 22.41% IPO fund to pay debt.
4. Listing in Ace Market.
5. Technology changing too fast & easy to be replace by strong competitors.
6. Net profit margin is not attractive.
7. No fix dividend policy.

Conclusions
Overall is not a good IPO. Kindly avoid this IPO.

IPO Price: RM0.23
Good time: RM0.18 (PE10)
Bad time: RM0.085 (PE5)

Revenue Group Berhad

IPO Rating ( 1.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 11/06/2018
Close to apply: 07/07/2018
Listing date: 18/07/2018

Share Capital
Market Cap: RM82.453 mil
Shares Issue to sell: 72.425 mil shares
Enlarged Issued Shares: 222.848 mil shares

Business
Cashless payment solution

Fundamental
Market: Ace Market
Price: RM0.37 (eps 6mth: RM0.0198)
P/E & ROE: PE9.34, ROE8.7%
Cash & fixed deposit after IPO: RM0.077 per shares
NA after IPO: RM0.0017
Total debt to current asset after IPO: 0.86 (Debt: 26.776  mil, Non-Current Asset: 33.754 mil, Current asset: 31.007 mil)
Dividend policy: -

Financial
Trade Receivable: 61.7 days
Trade payable: 78.7 days

Past Financial Proformance (Revenue, EPS)
FPE 2017: RM15.397 (eps 6mth: 0.0198)
2017: RM26.526 mil (eps: 0.0313)
2016: RM25.726 mil (eps: 0.0203)
2015: RM14.386 mil (eps: 0.0095)

RGB Net Profit Margin
FPE 2017: 21.8%
2017: 26.1%
2016: 17.5%
2015: 14.7%

Competitor PAT Margin %
RGB 26.1%
GHL 7.4%
Interbase 10.1%
IPAY88 21%
MOLPAY 16.9%

After IPO Sharesholding
Nor Azzam bin Abdul Jalil: 0.4%
Ng Chee Siong: 22.2%
Ng Shih Chiow: 21.5%
Ng shih Fang: 21.5%
Ooi Guan Hoe: 0.4%
Ng Chee Keong: 0.4%

Director Remuneration (from gross profit 2017)
Nor Azzam bin Abdul Jalil: RM66k
Ng Chee Siong: RM730k
Ng Shih Chiow: RM730k
Ng shih Fang: RM730k
Ooi Guan Hoe: RM48k
Ng Chee Keong: RM48k
Total director remuneration from gross profit: 14.94%

Use of fund
Capital Expenditure: 39.3%
Enchancement of recPay and expansion of IT team: 19.6%
Repayment Debt: 12.1%
Business expansion: 7.3%
Listing expenses: 13.1%
Working capital: 8.6% (Add missing part on posting date)

Conclusion
Good thing is:
1. In Sunrise industry, but in very competitive environment.
2. Revenue increasing over 3 year.
3. Directors still is major sharesholders.

The bad things:
1. Listing is on Ace market.
2. ROE% 8.7% is not attractive.
3. Director fee is 14.94% from gross profit, which is consider very expensive & it take big portion of company profit.
4. Use IPO fund 12.1% for debt repayment.
5. Debt to current asset is high 0.86.
6. No fix dividend policy.

Conclusions
Is consider a medium to high risk IPO. Suggest to avoid for long term investment.

IPO Price: RM0.37
Good time: RM0.43 (PE11)
Bad time: RM0.27 (PE7)