IPO Rating (2.0 /5.0 Stars)Copyright@http://lchipo.blogspot.com/
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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.