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Date
Open to apply: 19/08/2019
Close to apply: 06/09/2019
Listing date: 25/09/2019
Share Capital
Market Cap: RM 361.257 mil
Total Shares: 681.617 mil shares (IPO 136.323 mil, Private Placement 20.074 mil)
Business
Manufacture of Air Filter product, Printing labels & stickers, tapes adhesives, and other product.
Fundamental
Market: Ace Market
Price: RM0.53 (Diluted eps:
P/E & ROE: PE
Cash & fixed deposit after IPO: RM0.056 per shares
NA after IPO: RM0.23
Total debt to current asset after IPO: 0.248 (Debt: 29.477 mil, Non-Current Asset: 69.619 mil, Current asset: 118.838 mil)
Dividend policy: Suggest 20% dividend policy.
Financial Ratio
Trade receivable: 96 days
Trade Payable: 53 days
Inventory turnover: 63 days
Past Financial Proformance (Revenue, EPS)
2019: RM136.109 mil (9mth)
2018: RM187.465 mil (eps: 0.070)
2017: RM186.607 mil (eps: 0.033)
2016: RM126.983 mil (eps: 0.023)
Net Profit Margin
2019: 17.42% (9mths)
2018: 25.34%
2017: 12.13%
2016: 12.51%
After IPO Sharesholding
Chaw Kam Shiang: 50.5%
Goh Jui Heng: 0.8%
Lau Cher Liang: 16.7%
Director & Key Managemen Remuneration for FYE2019 (from gross profit 2018)
Lee Ting Kiat: RM31.5k
Chaw Kam Shiang: RM2.7735 mil
Goh Jui Heng: RM0.3764 mil
Lau Cher Liang: RM3.578 mil
Jason Tan Kim Song: RM25.5K
Dyana Sofya: RM25.5k
Total director & key management remuneration from gross profit: RM6.8104 mil (12.07%)
Use of fund
Land acquisition & construction manufacture: 45.7%
Capital expenditure: 18%
Repayment debt: 13.8%
Working capital: 17.2%
Listing expenses: 5.3%
Industry Analysis (Insufficient historical data)
Label Printing & converting industry 2017-2018 growth rate 9%
SDSSF industry 2017-2018: Growth rate 4.5% (factor in inflation, there is almost no growth).
Conclusions
Good thing is:
1. PE15 still not above country PE.
2. Have clear dividend policy.
3. ROE29.9%
4. Average profit margin near to 15%
The bad things:
1. Listed in Ace market.
2. Revenue did not growth past 2 year.
3. Director fees 12% from gross profit is too expensive.
4. Repayment debt 13.8%
5. Unable provide industry research of converting mesh into air filter product. The air filter product contribute more than 50% of company revenue.
6. Too little industry research to do forcase for the other 2 business (label printing & SDSSF).
7. Steel business is no growth if factor in inflation.
Conclusions
Overall is unable to justify the IPO true value. Lack of certain information to do forcase.
IPO Price: RM0.53
Good time: RM0.0.45 (PE13)
Bad time: RM0.28 (PE8)