Optimax Holdings Berhad

IPO Rating (2.0 /5.0 Stars)
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Open to apply: 15/07/2020
Close to apply: 04/08/2020
Listing date: 18/08/2020

Share Capital
Market Cap: RM46.944 mil
Total Shares: 270mil shares (Public apply: 13.5mil, Company Insider/Miti/Private Placement/other: 56.5mil)

Industry
Healthcare Industry - Eye Specialist

Competitor (Net Profit Margin)
Optimax (this IPO): 13.90%
Topvision Eye Specialist Bhd: 6.99%
ISEC healthcare Ltd: 16.88%

Business
Eye specialist services (13 specialist centres in M'sia)

Fundamental
Market: Ace Market
Price: RM0.30 (EPS:0.029)
P/E: PE10.34
ROE: 20.18 (IPO pro Forma III)
ROE:  20.18(2019), 12.34(2018), 44.58(2017), 28.84(2016)
Cash & fixed deposit after IPO: RM0.0477 per shares
NA after IPO: RM0.16
Total debt to current asset after IPO: 1.87 (Debt:35.327mil, Non-Current Asset: 59.766mil, Current asset: 18.854mil)
Dividend policy: No fix dividend policy.

Past Financial Performance (Revenue, EPS)
2019: RM62.619 mil (EPS: 0.0290)
2018: RM49.234 mil (EPS: 0.0165)
2017: RM36.015 mil (EPS: 0.0274)
2016: RM29.962 mil (EPS: 0.0120)

Net Profit Margin
2019: 13.96%
2018: 10.09%
2017: 20.49%
2016: 10.46%

After IPO Sharesholding
Dato' Tan Boon Hock: 31.8%
Sandy Tan: 0.38%
Michelle Tan: 0.38%
Dr.Stephen Chung: 5.69%
Dr.Chung Kay Leong: 3.73%

Directors Remuneration for FYE2021 (from gross profit 2019)
Tan Sri Datuk Dr.Ir. Ahmad Tajuddin bin Ali: RM120k
Dato' Tan Boon Hock: RM60k
Yap Ping Hong: RM66K
Yap Eng Gee: RM60K
Total director remuneration from PBT: RM0.306mil or 2.43%

Key Management Remuneration  for FYE2021 (from gross profit 2019)
Sandy Tan: RM550k-600k
Michelle Tan: RM250k-300k
Dr.Stephen Chung: RM400k-450k
Dr.Chuah Kay Leong: RM1.050-1.10mil
Dr.Lam Hee Hong: RM650k-700k
Pang Woei Yaw: RM50k-100k
Ang Chian Yen: RM100k-150k
key management remuneration from PBT: RM3.4 mil or 27%

Use of fund
Capital Expenditure: 49.31%
Repayment borrowing: 16.76%
Working Capital: 16.79%
Listing Expenses: 17.14%

Good thing is:
1. PE10.34 consider fair price.
2. ROE is above 20%
3. Over past 4 years, revenue increasing, & net profit margin above 10%.
4. Healthcare industry will continue to sustain as long as there is needs for the services.

The bad things:
1. Sandy Tan (CEO) appointed on board at Dec 2019 (Time too short for varify management quality).
2. In term of Market size, is not the biggest.
3. 16.76% IPO fund use to pay debt.
4. 49.31% capital expenditure use to upgrade Seremban clinic into ambulatory center (add 1 ambulatory to become 12 ambulatory in M'sia, growth impart might not very big).

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
The industry itself will continue grow as eye disease should be increase (Human daily activity on phone,PC).
Unable to verify the potential of business expand as unable to verify management quality & futures direction.

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.

TCS Group Holdings Berhad

IPO Rating (1.75/5.0 Stars)
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Date
Open to apply: 29/06/2020
Close to apply: 10/07/2020
Listing date: 23/07/2020

Share Capital
Market Cap: RM46.944 mil
Total Shares:  mil shares (Public apply:10.8 mil, Company Insider/Miti/Private Placement/other: 97.2mil)

Industry
Property & construction segment have been in slow growth phase in Malaysia for this few years. However it still cannot category as sunset industry. I will be in temporary sleeping mode for industry growth.
**CAGR posted in Prospectus book using forecase 2019-2024, we decided do not take this as reference as it did not reflect true CAGR 5 year average of previous year result.

Competitor (Profit before tax margin)
TCS: 6.1% (PE5.75)
Gagasan: 15.2% (PE9.31)
GDB: 11.7% (PE12.92)
Inta Bina: 7.2% (PE5.9)

Business
Construction services for buildings, infrastructure, civil and structural works in Malaysia.

Fundamental
Market: Ace Market
Price: RM0.23 (EPS:0.04)
P/E: PE5.75
ROE: 26.5 (IPO pro Forma III)
ROE:  26.5 (2019),  16.6 (2018), 10.5(2017), 8.6 (2016)
Cash & fixed deposit after IPO: RM0.0899 per shares
NA after IPO: RM0.16
Total debt to current asset after IPO: 0.86 (Debt:119.484 mil, Non-Current Asset: 39.607mil, Current asset: 138.962mil)
Dividend policy: No fix dividend policy.

Past Financial Performance (Revenue, EPS)
2019: RM358.424 mil (EPS: 0.0435)
2018: RM146.266 mil (EPS: 0.0269)
2017: RM71.718 mil (EPS: 0.0172)
2016: RM103.628 mil (EPS: 0.0141)

Net Profit Margin
2019: 4.37%
2018: 6.71%
2017: 8.63%
2016: 4.91%

After IPO Sharesholding
Dato' Ir Tee Chai Seng: 59.07%
Datin Koh Ah Nee: 10.42%

Directors Remuneration for FYE2021 (from gross profit 2019)
Dato' Ir Tee Chai Seng: RM1.004 mil
Datin Koh Ah Nee: RM367k
Tan Sri Dato' Sri Izzuddin bin Dali: RM75k
Dato' Seri Ir Mohamad Othman Bin Zainal Azim: RM63k
Ooi Guan Hoe: RM63k
Total director remuneration from gross profit: RM1.572 mil or 4.17%

Key Management Remuration  for FYE2021 (from gross profit 2019)
Ooi Kee An: RM200k-250k
Yap Choo Cheng: RM200k-250k
Liew Kok Yoong:  RM100k-150k
Ho Chee Woei: RM150k-200k
Koo Yoke Ping: RM50k-100k
Ng Lee Foong: RM50k-100k
key management remuneration from gross profit: RM1.05 mil or 2.78%

Use of fund
Purchase of new construction machinery and equipment: 62.80%
Working capital: 20.29%
Listing Expenses: 16.91%

Good thing is:
1. Low PE, ROE26.5
2. ROE increase over pass few years.
3. Use 83.09% IPO fund to expand business.
4. Revenue have growth for pass 4 year.
5. Low interest environment will encourage property industry.

The bad things:
1. Compare to other competitor, profit margin not high & net profit margin less than 10%.
2. Direcrtor fee have a bit expensive.
3. Listing Expenses is expensive.
4. Unable to know the true industry CAGR for past 5 years.
5. No fixed dividend policy.

Conclusions (Blogger is not wrote any recommedation & suggestion. All is personal opinion)
The industry of their business is on sleeping mode. As property & construction is growing slow in Malaysia for past few years. We still have many other good opportunities to allocate properly our capital for investment.

IPO Price: RM0.23
Good time: RM0.32 (PE8)
Bad time: RM0.16 (PE4)

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.

Ocean Vantage Holdings Berhad

IPO Rating ( 1.5/5.0 Stars)
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Date
Open to apply: 30/06/2020
Close to apply: 09/07/2020
Listing date: 22/07/2020

Share Capital
Market Cap: RM106.860 mil
Total Shares: 411 mil shares (Public apply: 20.55mil, Company Insider/Miti/Private Placement: 102.570mil)

Industry
Industry CAGR%: 5.1% (Offshore Oilfield Services Industry Siza in M'sia 2010-2018)

Business
Upstream Oilfield Services(Eploration & Production) & Downstream (Refining)                   
-EPC & project management                   
-Supply of manpower                             
-Supply of materials, tools, & equipment
-Provision of drilling rig charter services

Fundamental
Market: Ace Market
Price: RM0.26 (EPS:0.0168)
P/E: PE15.48
ROE: 20.44 (IPO pro Forma III)
ROE: 20.44 (2019), 15.28 (2018), 8.92 (2017), 8.01 (2016)
Cash & fixed deposit after IPO: RM0.0541 per shares
NA after IPO: RM0.08
Total debt to current asset after IPO: 0.31 (Debt: 6.955mil, Non-Current Asset: 18.564mil, Current asset: 22.237mil)
Dividend policy: No fix dividend policy.

Past Financial Performance (Revenue, EPS)
2019: RM58,284 mil (EPS: 0.0168)
2018: RM30,492 mil (EPS: 0.0126)
2017: RM24,009 mil (EPS: 0.0073)
2016: RM17,645 mil (EPS: 0.0066)

Net Profit Margin
2019: 11.87%
2018: 16.97%
2017: 12.58%
2016: 15.36%

After IPO Sharesholding
Kenny Ronald Ngalin: 35.8%
Martin Philip King Ik Piau: 26.2%
Yau Kah Tak: 8%

Directors Remuneration for FYE2021 (from gross profit 2019)
Nor Azzam Bin Abdul Jalil: RM48k
Kenny Ronald Ngalin: RM336k
Martin Philip King Ik Piau: RM342k
Yau Kah Tak: RM336k
Tham Choi Kuen: RM30k
Iiham Fadilah Binti Sunhaji: RM30k
Reza-Rizvy Bin Ahmad Rony Assim: RM24k
Total director remuneration from gross profit: RM1.146 mil or 7.75%

Key Management Remuration  for FYE2021 (from gross profit 2019)
Chang Vun Lung: RM250k-300k
Thomas Jalong:  RM150k-200k
key management remuneration from gross profit: RM1.436mil or 6.95%

Use of fund
Broadening our range of support services: 15.14%
Capital expenditure for downstream O&G: 40.20%
Working capital: 30.62%
Listing Expenses: 14.04%

Good thing is:
1. PE15.48 consider at fair level.
2. ROE increasing over past 4 year.
3. Revenue increasig over past 4 years.
4. 85.96% IPO fund use to expand business.
5. Low debt company.

The bad things:
1. Industry CAGR 5.1% from 2010-2018, if we factor in inflation, basically is no growth industry CAGR. Oil & gas industry is more to sunset industry, as world is heading to green energy.
2. Net profit did not have good improvement.
3. Director fee is a bit expensive in percentage due to low gross profit.
4. No formal dividend policy.

Conclusions
The company is in challenging environment Industry CAGR 5.1% for 8 years, if we factor in inflation mean there is a negative growth industry. External factor will limit their growth in futures & the world is moving toward green energy. If the company continue stay in same industry, it might not suitable for long term investment.

IPO Price: RM0.26
Good time: RM0.265 (PE16)
Bad time: RM0.135 (PE8)

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.