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Open to apply: 29/09/2020
Close to apply: 06/10/2020
Listing date: 16/10/2020
Close to apply: 06/10/2020
Listing date: 16/10/2020
Share Capital
Market Cap: RM272 mil
Total Shares: 800mil shares (Public apply: 40mil, Company Insider/Miti/Private Placement/other: 169.348mil)
Industry
Manufacturing of cable & wires
Competitor (Gross Profit Margin%)
Sarawak Cable: 4.5% (loss making)
Olympic Cable: 15.6%
Sindutch cable: n/a, (loss making)
Pan-international: 11.7%
Tai Sin Electric: 4.5% (loss making)
Olympic Cable: 15.6%
Sindutch cable: n/a, (loss making)
Pan-international: 11.7%
Tai Sin Electric: 4.5% (loss making)
Business
Manufacturing of cable & wires for power distribution.
- Power cabless & wires (e.g. cable on the power tower on road site)
- Communications cables & wires (e.g. LAN wires for internet)
- Control and Instrumentation cables & wires (industry use cable,
Manufacturing of cable & wires for power distribution.
- Power cabless & wires (e.g. cable on the power tower on road site)
- Communications cables & wires (e.g. LAN wires for internet)
- Control and Instrumentation cables & wires (industry use cable,
Fundamental
Market: Ace Market
Price: RM0.34 (EPS:0.0357)
P/E: PE7.04
ROE (Pro Forma III): 7.21
ROE: 16.22 (2019), 17.79 (2018), 15.00 (2017), 13.74 (2016)
Cash & fixed deposit after IPO: RM per shares
NA after IPO: RM0.32
Total debt to current asset after IPO: 0.53 (Debt: 209.553mil, Non-Current Asset: 70.040mil, Current asset:
393.25mil)
Dividend policy: 15% PAT dividend policy.
Market: Ace Market
Price: RM0.34 (EPS:0.0357)
P/E: PE7.04
ROE (Pro Forma III): 7.21
ROE: 16.22 (2019), 17.79 (2018), 15.00 (2017), 13.74 (2016)
Cash & fixed deposit after IPO: RM per shares
NA after IPO: RM0.32
Total debt to current asset after IPO: 0.53 (Debt: 209.553mil, Non-Current Asset: 70.040mil, Current asset:
393.25mil)
Dividend policy: 15% PAT dividend policy.
Past Financial Performance (Revenue, EPS)
2020 (FPE June): RM241.086 mil (EPS: 0.0114)
2019: RM656.687 mil (EPS: 0.0357)
2018: RM683.199 mil (EPS: 0.0328)
2017: RM595.694 mil (EPS: 0.0227)
2016: RM470.656 mil (EPS: 0.0177)
*EPS in prospectus using EPS before dilutes, EPS here amend diluted based on 800mil shares.
2020 (FPE June): RM241.086 mil (EPS: 0.0114)
2019: RM656.687 mil (EPS: 0.0357)
2018: RM683.199 mil (EPS: 0.0328)
2017: RM595.694 mil (EPS: 0.0227)
2016: RM470.656 mil (EPS: 0.0177)
*EPS in prospectus using EPS before dilutes, EPS here amend diluted based on 800mil shares.
Net Profit Margin
2020: 3.79%
2019: 4.35%
2018: 3.84%
2017: 3.05%
2016: 3.01%
2020: 3.79%
2019: 4.35%
2018: 3.84%
2017: 3.05%
2016: 3.01%
After IPO Sharesholding
Rizvi Bin Abdul Halim: 0.05%
Tung Eng Hai: 35.69%
Wong Meng Kee: 36.55%
Wong Kar Wai: 0.05%
Daphne Choy Gaik Choo: 0.05%
Eugene Lee Cheng Hoe: 0.05%
Rizvi Bin Abdul Halim: 0.05%
Tung Eng Hai: 35.69%
Wong Meng Kee: 36.55%
Wong Kar Wai: 0.05%
Daphne Choy Gaik Choo: 0.05%
Eugene Lee Cheng Hoe: 0.05%
Directors Remuneration for FYE2020 (from gross profit 2019)
Rizvi Bin Abdul Halim: RM42k
Tung Eng Hai: RM1.583 mil
Wong Meng Kee: RM0.409 mil
Wong Kar Wai: RM42k
Daphne Choy Gaik Choo: RM42k
Eugene Lee Cheng Hoe: RM42k
Total director remuneration from PBT: RM2.16mil or 3.21%
Rizvi Bin Abdul Halim: RM42k
Tung Eng Hai: RM1.583 mil
Wong Meng Kee: RM0.409 mil
Wong Kar Wai: RM42k
Daphne Choy Gaik Choo: RM42k
Eugene Lee Cheng Hoe: RM42k
Total director remuneration from PBT: RM2.16mil or 3.21%
Key Management Remuneration for FYE2020 (from gross profit 2019)
Ooi In Keong: RM350k-400k
Song Swee Kim: RM300k-350k
Zen Azhar Bin Shuib: RM250k-300k
key management remuneration from PBT: RM900k-1.05mil or 1.56%
Ooi In Keong: RM350k-400k
Song Swee Kim: RM300k-350k
Zen Azhar Bin Shuib: RM250k-300k
key management remuneration from PBT: RM900k-1.05mil or 1.56%
Use of fund
Capital expenditure: 42.15%
Repayment bank borrowing: 12.91%
Working capital: 38.62%
Listing Expenses: 6.32%
Capital expenditure: 42.15%
Repayment bank borrowing: 12.91%
Working capital: 38.62%
Listing Expenses: 6.32%
Good thing is:
1. Product is continue have demand for development.
2. PE7.04 consider discounted from countery PE. (PE low for reason)
3. Have fixed dividend policy.
1. Product is continue have demand for development.
2. PE7.04 consider discounted from countery PE. (PE low for reason)
3. Have fixed dividend policy.
The bad things:
1. Cable & wire industry is not having good profit. Event their competitor also suffer low net profit margin & loss making.
2. Revenue is dropping & 5 years net profit margin never above 10%.
3. IPO fund 38.62% use to pay debt.
4. ROE is dropping past 3 years.
1. Cable & wire industry is not having good profit. Event their competitor also suffer low net profit margin & loss making.
2. Revenue is dropping & 5 years net profit margin never above 10%.
3. IPO fund 38.62% use to pay debt.
4. ROE is dropping past 3 years.
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
Not attractive, and investment might difficult to growth.
Not attractive, and investment might difficult to growth.
*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.