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)