IPO Rating ( 1.25 star out of 5.0)
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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)