HPP Holdings Berhad

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Open to apply: 15/12/2020
Close to apply: 07/01/2021
Listing date: 20/01/2021

Share Capital
Market Cap: RM139.8345mil
Total Shares:  388.43mil shares (Public apply: 19.4216mil, Company Insider/Miti/Private Placement/other: 89.2474mil)

Industry
Printing Industry CAGR 2016-2019: 6.04% 
Top Five Industry Player (by PAT Margin)
Kinta Press & Packaging S/B: 20.98%
GL Printing S/B: 18.99%
Thumbprints Utd S/B: 13.47%
Hin Press S/B: 9.10%
Hayan Group (HPP): 8.72%

Business
Printing & production of paper-based packaging. 
*Standard format machine utilisation rate 88.44%
*Currently 6 machines (5 in production line, 1 for training purpose)
*IPO add 2 machines (will dispose on old machines)
*Forecast printing capacity increase 20%
Revenue from Malaysia: 72.44%
Revenue from Oversea: 27.56%

Fundamental
1.Market: Ace Market
2.Price: RM0.36 (EPS:0.0212)
3.P/E: PE16.98
4.ROE(Pro Forma III): 8.885%
5.ROE: 12.72%(2020), 22.76%(2019), 28.82%(2018)
6.Cash & fixed deposit after IPO: RM0.0878 per shares
7.NA after IPO: RM0.25
8.Total debt to current asset after IPO: 0.4655 (Debt: 28.566mil, Non-Current Asset: 66.417mil, Current asset: 61.360mil)
9.Dividend policy: 20% Net profit dividend payout ratio policy.

Past Financial Performance (Revenue, EPS)
2020: RM101.203 mil (EPS: 0.0212)
2019: RM82.681 mil (EPS: 0.0343)
2018: RM64.395 mil (EPS: 0.0384)

Net Profit Margin
2020: 8.71%
2019: 16.53%
2018: 23.19%

After IPO Sharesholding
Aurora Meadow S/B: 51.72%
Kok Hon Seng: 5.94% (indirect 55.3%)
Lau Teee Tee @ Lau Kim Wah: 1.98% (indirect 53.51%)
Ng Soh Hoon: 3.58% (indirect: 57.66%)
Chong Fea Chin: 1.79% (indirect 53.7%)
Ang Poh Geok: 7.01%

Directors Remuneration for FYE2021 (from gross profit 2020)
Lau Tee Tee @ Lau Kim Wah: RM100k
Kok Hon Seng: RM0.954 mil
Ng Soh Hoon: RM0.216 mil
Philip Goh Teck Siang: RM60k
Choo Chee Beng: RM36k
Lee Chong Leng: RM36k
Total director remuneration: RM1.402 mil or 6.77%

Key Management Remuneration  for FYE2020 (from gross profit 2019)
Tan Kian Siong @ Chen Kian Siong: RM0.251mil-0.3 mil
Mah Chen Wah: RM0.151mil-0.2mil
Ng Soh Moy: RM0.151mil-0.2mil
Teng Tiang Chia: RM0.201mil-0.25mil
Lee Kuei Yong: RM0.051mil-0.1mil
Subramaniam A/L Mogan: RM0.101mil-0.15mil
Nur Syafiqah Binti Hassan: RM0-0.05mil
key management remuneration: RM0.906mil-1.25mil or 4.38%-6.04%

Use of fund
Capital expenditure and expansion: 40.82%
Repayment of bank borrowing: 24.38%
Working capital: 16.31%
Sales and marketing expenses: 6.27%
Listing Expenses: 12.22%

Good thing is:
1. PE 16.98 under acceptable range. 
2. Revenue increase over 3 years.
3. Major sharesholder hold by Aurora Meadow S/B, will have less large dispose of shares activities after IPO. 
4. After IPO forecast printing capicity increase 20%. 

The bad things:
1. ROE & EPS dropping over 3 years. 
2. 16.31% IPO fund allocate to pay back bank borrowing. 
3. Industry CAGC is not in high growth. 
4. HPP is not major market player among their competitors. 
5. Director & top management remuneration is over 10% of the company gross profit. 

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
The IPO is at fair value.Estimated after completed install the new printing machine will have increase of printing capacity 20% that will increase revenue. However the business is not going to increase 100% in one or two years, as revenue also need to come with printing capacity. We might not see very high growth of business. (WARNING: business growth is not shares price growth)
for Risk vs business growth potential please refer below chart. 

*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.

New Rating Format

 

New Format of Rating in Blog Rating
The new rating format is separated into 2 category.  
(Rating is only personal opinion, investor should take their own risk)

Four Colour Column of Risk Reward
Green: Low Risk, High Return
Blue: Low Risk, Low Return
Yellow: High Risk, High Return
Red: High Risk, Low Return

Vertical Line & Horizontal Line
Vertical line: Possible return within 3 years. 
Horizontal line: Possible risk of not make profit. 

Example 1 (Rating is only personal opinion, investor should take their own risk)
Samaiden: Rating as Return 5, Risk 4. 
This is mean forecast the Samaiden business can growth with 3 years for 50% (Return 5), and the risk of not able to achieve business growth forecast is 40% (Risk 4). 
***Samaiden first day IPO price open  first day RM1.00 (+108% return), now slow drop back as price per now is RM0.78. 

Example 2 (Rating is only personal opinion, investor should take their own risk)
SCGBHD (Southern Cable): Rating as Return 1, Risk 7.
This mean forecast business able to growth within 3 years is 10% (Return 1), and the risk of not able to achieve business growth forecast is 70%. 
***SCGBHD first day open 0.335 (-1.47% losses), now price is at losses as well RM0.32 below IPO price. 

(Rating is only personal opinion, investor should take their own risk)

Mr D.I.Y Group (M) Berhad

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Open to apply: 06/10/2020
Close to apply: 14/10/2020
Listing date: 26/10/2020

Share Capital
Market Cap: RM294.95mil
Total Shares: 6.2766 mil shares (Public apply:125.532mil, Company Insider/Miti/Private Placement/other: 815.958mil)

Industry
Home Improvement Retail Sector.

Business
Hardware store.
Malaysia: 670 stores. (Penisular: 568, East Malaysia:102)
Brunei: 4 stores.

Fundamental
1.Market: Main Market
2.Price: RM1.60 (EPS:0.0506)
  -If retail IPO price lower than RM1.60, will refund the price difference.
3.P/E: PE31.6
4.ROE(Pro Forma III): 33.53
5.ROE: 54.19(2019), 58.79(2018), 60.14(2017)
6.Cash & fixed deposit after IPO: RM0.00807 per shares
7.NA after IPO: RM0.11
8.Total debt to current asset after IPO: 1.656 (Debt: 1.1203bil, Non-Current Asset: 1.1328bil, Current asset: 0.6767bil)
9.Dividend policy: 40% Net profit dividend payout ratio policy.

Past Financial Performance (Revenue, EPS)
2020 (6-mth): RM1.051bil (EPS: 0.0190)
2019: RM2.275bil (EPS: 0.0522)
2018: RM1.771bil (EPS: 0.0506)
2017: RM1.229bil (EPS: 0.0345)
***prospectures book EPS using Pre-IPO 6.088bil shares to calculate EPS, pg211)

Net Profit Margin
2020: 11.0%
2019: 14.0%
2018: 17.4%
2017: 17.1%

After IPO Sharesholding
1.Bee Family Limited: 50.6%
  - Tan Yu Yeh
  - Tan Yu Wei 
  - Yeh Family (PTC) LTD
  - WEI Futures Capital
2.Hyptis: 15.2%
  - Creador III L.P.
  - Creador II, LLC
3.Platinum Alphabet: 6.9% 
  - Gan Choon Leng
  - Tan Gaik Hoon

Directors Remuneration for FYE2020 (from gross profit 2019)
1.Dato' Azlam Shah Bin Alias: RM176k
2.Tan Yu Yah: RM1.187mil
3.Ong Chu Jin Adrian: RM1,271mil
4.Brahmal A/L Vasudevan: -
5.Ng Ing Peng: RM119k
6.Leng Choo Yin: RM111k
7.Tan Yu Wei: RM1.006mil
8.Soo Sze Yang: -
Total director remuneration from PBT: RM2.9646 mil or 0.308%

Key Management Remuneration  for FYE2020 (from gross profit 2019)
1.Lim Chen Hwee: RM550k-600k
2.Tan Yew Hock: RM400k-450k
3.Tan Yew Teik: RM350k-400k
4.Hoe Lye Peng: RM450k-500k
5.Lau Boon Teck: RM450k-500k
6.Chin Guangui: 450k-500k
key management remuneration from PBT: RM2.65mil-2.95mil or 0.306%

Use of fund
1.Repayment of bank borrowing: 91.6%
2.Listing Expenses: 8.4%

Good thing is:
1. ROE over 15.
2. Most large in number of hardware store in Malaysia (cost advantage) & Brands influence.
3. Past 3 year revenue increasing.
4. total Director & key management fee did not over gross profit 3%. 
5. Have fixed dividend payout policy.

 
The bad things:
1. PE31.6 is not cheap.
2. Net asset RM0.11
3. Net profit margin decreasing for pass 3 years.
4. 91.6% IPO fund use to pay back bank borrowing.
5. After IPO, still have RM1.12mil debt, but cash is RM50.623 mil. 

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
This businees model successfully expand their business to almost whole Malaysia. But we cannot expect the business continue growth as past few years, as it already expand notion wide. 
In the prospectus book Pg13 mention they expected to add additional 100 store in 2020 & 100 store in 2021, however did not mention the expected area to expand.
The price PE31.6 is included & price in potential of futures expansion, trust this is not a fair price & there might have opportunities to buy open market when it adjusted into their fair value. 

*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.

Econframe Berhad

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Open to apply: 05/10/2020
Close to apply: 12/10/2020
Listing date: 27/10/2020

Share Capital
Market Cap: RM91mil
Total Shares: 325mil shares (Public apply: 16.25mil, Company Insider/Miti/Private Placement/other: 81.25mil)

Industry
Building material (specific in door)
Competitor (PAT%, refer prospecture pg149)
1.Door frame (9company): losses-5.1%
2.Key fire resistance door (10company): losses-7.21%
3.Key Woonden door (16 company):losses-7.81% (only one competitor have 14.32%)
4.Key Metal door (2company): 3.07%-15.14%
5.Key ironmongery (11 company): losses-8.3%

Business
1.Design & manufacturing of metal door frame (Rev:47.5%).
2.Manufacturing of fire resistant door sets (Rev:33.2%).
3.Manufacturing of metal doors (Rev:0.6%)
4.Trading of wooden doors & inronmongery (Rev18.7%)

Fundamental
1.Market: Ace Market
2.Price: RM0.28 (EPS:0.025)
3.P/E: PE11.2
4.ROE(Pro Forma III): 18.58
5.ROE: 31.28(2019), 23.72(2018), 19.18(2017)
6.Cash & fixed deposit after IPO: RM0.068 per shares
7.NA after IPO: RM0.14
8.Total debt to current asset after IPO: 0.083 (Debt: 3.25mil, Non-Current Asset: 10.068mil, Current asset: 39.089mil)
9.Dividend policy: No fixed dividend policy.

Past Financial Performance (Revenue, EPS)
2020 (9-mth): RM29.977 mil (EPS: 0.0130)
2019: RM44.089 mil (EPS: 0.0250)
2018: RM39.834 mil (EPS: 0.0157)
2017: RM35.494 mil (EPS: 0.0096)

Net Profit Margin
2020: 14.0%
2019: 18.5%
2018: 12.8%
2017: 8.80%

After IPO Sharesholding
1.Lim Chin Horng: 34.7%
2.Khoo Soon Beng: 2.0%
3.Lim Saw Kee: 33.4%

Directors Remuneration for FYE2020 (from gross profit 2019)
1.Robert Koong Yin Leong: RM15k
2.Lim Chin Horng: RM222k
3.Khoo Soon Beng: RM133k
4.Lim Saw Kee: RM10k
5.Tan Hock Soon: RM15k
6.Ilham Fadilah Binti Sunhaji: RM12k
Total director remuneration from PBT: RM0.407mil or 2.79%

Key Management Remuneration  for FYE2020 (from gross profit 2019)
1.Yong Wai Kin: RM100k-150k
2.Lai Shu San: RM100k-150k
3.Yong Chaw Ang: RM100k-150k
4.Soi Wen Li: RM50k-100k
5.Ang Sze Cie: RM50k-100k
key management remuneration from PBT: RM0.4mil-0.65mil or 4.45%

Use of fund
1.Land acquisition and construction of new manufacturing facility: 27.5%
2.Automation of manufacturing process: 22.0%
3.Working capital: 34.1%
4.Listing Expenses: 16.4%

Good thing is:
1. PE11.12 is not too high & ROE is over 15.
2. Debt is healthy.
3. Director remuneration is acceptable.
4. Most of the IPO fund use to expand business.
5. The company planned to increase automation process in the production line.

The bad things:
1. Too many competitors in market. 
2. Most competitor PAT Margin making either losses or less than 8% PAT margin, buy why Ecoframe only make 18.45%, unless they very specific price/cost advantage in this industry.
3. No fixed dividend policy.
4. Current over supply property environment & covis-19 is not benefit the industry growht.

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
The timing of property growth have very high related with their product demand. Hence, current property oversupply & covis-19 effect economic growth, will not benefit the company in coming 1-3years. 

*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.

Aneka Jaringan Holding Berhad

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Open to apply: 01/10/2020
Close to apply: 09/10/2020
Listing date: 20/10/2020

Share Capital
Market Cap: RM177.5 mil
Total Shares: 538.1mil shares (Public apply: 26.906mil, Company Insider/Miti/Private Placement/other: 112.984mil)

Industry
Construction Industry
Competitor (Net Profit Margin%)
Econpile: 3.8%
Pintaras Jaya: 8.3%
Sunway Geotechnics: 3.0%
Ikhmas Jaya: Loss making

Business
Foundation and basement constructions. 

Fundamental
Market: Ace Market
Price: RM0.33 (EPS:0.0343)
P/E: PE9.62
ROE(Pro Forma III): 13.2 
ROE: 24.1(2019), 22.9(2018), 14.8(2017)
Cash & fixed deposit after IPO: RM0.0728 per shares
NA after IPO: RM0.24
Total debt to current asset after IPO: 0.577 (Debt: 82.852mil, Non-Current Asset: 73.811mil, Current asset: 143.559mil)
Dividend policy: No fixed dividend policy.

Past Financial Performance (Revenue, EPS)
2020 (9-mth): RM104.226 mil (EPS: 0.161)
2019: RM221.172 mil (EPS: 0.0343)
2018: RM266.872 mil (EPS: 0.0249)
2017: RM171.153 mil (EPS: 0.0118)

Net Profit Margin
2020: 8.85%
2019: 9.10%
2018: 5.55%
2017: 5.00%

After IPO Sharesholding
Dato'Ir.Tan Gim Foo:0.06%
Pang Tse Fui:18.50%
Chong Ngit Sooi:18.50%
Loke Kien Tuck:18.50%
Dato' Noraini binti Abdul Rahman:0.06%
Wee Kee Hong:0.06%

Directors Remuneration for FYE2021 (from gross profit 2019)
Dato'Ir.Tan Gim Foo:RM54k

Pang Tse Fui:RM434k
Chong Ngit Sooi:RM434k
Loke Kien Tuck:RM434k
Dato' Noraini binti Abdul Rahman:RM46k
Wee Kee Hong:RM49k
Total director remuneration from PBT: RM1.451mil or 3.71%

Key Management Remuneration  for FYE2021 (from gross profit 2019)
Ooi Chong Pin: RM300k-350k
Steven Koh: RM350k-400k
Tham Kai How: RM150k-300k
Tung Sin Thian: RM250k-300k
Ngoi Tong King: RM250k-300k
key management remuneration from PBT: RM1.3mil-1.65mil or 4.21%

Use of fund
Purchase of new rotary drilling rigs and crawler crane: 37.48%
Repayment bank borrowing: 52.56%
Listing Expenses: 9.96%

Good thing is:
1. PE is not too high & ROE have double digit.
2. Debt is not too high.

The bad things:
1. 52.56% IPO fund use to repayment of debt.
2. Industry competitor & Aneka net profit didn't more than 10%
3. No fixed dividend policy.
4. Key management & Director remuneration total almost 8% of the total gross profit. 

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
52.56% use to pay company debt is totally not acceptable. Not attractive, and is not the good timing for investment in construction business. 

*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.

Southern Cable Group Berhad

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Open to apply: 29/09/2020
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)

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, 

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.

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.  

Net Profit Margin
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%

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%

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%

Use of fund
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. 

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.

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
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.

Samaiden Group Berhad

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Open to apply: 29/09/2020
Close to apply: 05/10/2020
Listing date: 15/10/2020

Share Capital
Market Cap: RM100.8 mil
Total Shares: 210mil shares (Public apply: 10.5mil, Company Insider/Miti/Private Placement/other: 50.655mil)

Industry
Renewable Energy (Solar & Biogas)
-Renewable Energy demand rising globally
-Solar panel cost getting cheaper & getting more commons (costing effectiveness)

Competitor (net Profit Margin%)
Scatec Solar: 36.6%
Solarvest: 9.9% (PE39.18)
Samaiden: 9.5%
Panasonic Life Solutions: 2.1%
El Power: 6.4%

Business
Existing: Enginneering, procurement, construction & commisonning services for Solar PV system. 
Futures: Own operate Biogas Plant (Bachok, Kelantan) & PV Power Plant (Sungai Petani, Kedah).
Market: Malaysia (Mainly), Vietnam (futures expend)

Fundamental
Market: Ace Market
Price: RM0.48 (EPS:0.0345)
P/E: PE13.91
ROE (Pro Forma III): 17.01
ROE: 49.23 (2020), 101.01 (2019), 65.93 (2018), 90.27 (2017)
Cash & fixed deposit after IPO: RM0.165 per shares
NA after IPO: RM0.20
Total debt to current asset after IPO: 0.299 (Debt: 17.355mil, Non-Current Asset: 1.539mil, Current asset: 58.116mil)
Dividend policy: No fix dividend policy.

Past Financial Performance (Revenue, EPS)
2020: RM76.170 mil (EPS: 0.0345)
2019: RM68.301 mil (EPS: 0.0356)
2018: RM31.322 mil (EPS: 0.0153)
2017: RM6.530 mil (EPS: 0.0065)

Net Profit Margin
2020: 9.49%
2019: 10.95%
2018: 10.26%
2017: 20.89%

After IPO Sharesholding
Dato' Dr.Nadzri Bin Yahaya: 0.41% 
Ir.Chow Pui Hee: 35.57%
Fong Yeng Foon: 35.31%
Lim Poh Seong: 0.14%
Olivia Lim: 0.14%

Directors Remuneration for FYE2021 (from gross profit 2020)
Dato' Dr.Nadzri Bin Yahaya: RM62k

Ir.Chow Pui Hee: RM574k
Fong Yeng Foon: RM492k
Lim Poh Seong: RM50k
Olivia Lim: RM38k
Total director remuneration from PBT: RM1.216mil or 10.43%

Key Management Remuneration  for FYE2021 (from gross profit 2020)
Susie Chung Kim Lan: RM150k-200k
Mohd Makhzumi bin Ghazali: RM100k-150k
Ir.Kang Ching Yew: RM100k-150k
key management remuneration from PBT: RM350k-500k or 0.3%

Use of fund
Purchase of Corporate Office: 23.85%
Business expansion and marketing activities: 8.65%
Capital expenditure: 3.98%
Working capital: 52.62%
Listing Expenses: 10.90%

Good thing is:
1. Renewable Energy is in sunrise industry & demand is rising globally. 
2. Cost of solar panel is getting cheaper compare past few years (lower cost of purchase)
3. PE13 is at acceptable fair value.
4. Revenue growing for past 4 years.
5. IPO use for expand business. (futures will have recurring income on own operate plant in Kedah & Kelantan).

The bad things:
1. High competitor environment as entry of business is not high.
2. No fixed dividend policy.
3. Director remuration is 10.43% from 2020 gross profit. 
4. Listing is in Ace Market.
5. Net profit is around 10%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
Riding on the right trend of business grow is benefited the company. We will see growth of the business.
 
*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.

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.

Reservoir Link Energy Berhad

IPO Rating ( 1.75 out of 5.0 Stars)

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Date
Open to apply: 25/06/2020
Close to apply: 01/07/2020
Listing date: 15/07/2020

Share Capital
Market Cap: RM116.850 mil
Total Shares: 285 mil shares (Public apply: 14.25mil, Company Insider/Miti/Private Placement: 73.876mil)

Business
Specialise in providing well services. O&G well services (well leak repair, well perforation, well testing, wash and cement, Wireline, O&G production enchancement.
Geo: Malaysia 96.54%, Mauritania 3.46%, Vietnam 3.46%.

Fundamental
Market: Ace Market
Price: RM0.41 (EPS:0.034)
P/E: PE12.06
ROE: 19.16 (IPO pro Forma III)
ROE: 31.56 (2019), 18.31(2018), 1.76 (2017), -25.86 (2016)
Cash & fixed deposit after IPO: RM0.0382 per shares
NA after IPO: RM0.18
Total debt to current asset after IPO: 0.72 (Debt: 38.097mil, Non-Current Asset: 41.077mil, Current asset: 52.663mil)
Dividend policy: No fix dividend policy.

Past Financial Proformance (Revenue, EPS)
2019: RM80.031 mil (EPS: 0.034)
2018: RM45.091 mil (EPS: -0.0027)
2017: RM20.874 mil (EPS: 0.0025)
2016: RM9.578 mil (EPS:0.0018)

Net Profit Margin
2019: 12.09%
2018: 8.90%
2017: 1.51%
2016: -43.67%

After IPO Sharesholding
Datuk Tai Hee: 10.39%
Dato' Wan Hassan Bin Mohd Jamil: 36.84%
Thien Chiet Chai: 13.38%
Eric Lim Swee Khoon: 0.18%
Siti Zurina Binti Sabarudin: 0.18%
Elain Binti Lockman: 0.18%

Directors Remuneration for FYE2021 (from gross profit 2019)
Datuk Tai Hee: RM76k
Dato' Wan Hassan Bin Mohd Jamil: RM578k
Thien Chiet Chai: RM578k
Eric Lim Swee Khoon: RM76k
Siti Zurina Binti Sabarudin: RM76k
Elain Binti Lockman: RM76k
Total director remuneration from gross profit: RM1.460 mil or 7.06%

Key Management Remuration  for FYE2021 (from gross profit 2019)
Mad Haimi Bin Abu Hassan: RM418k
Ho Khee Jeem: RM332k
Anwaruddin Bin Saidu: RM292k
Alphonsus Chiu Ching Chuen: RM372k
key management remuneration from gross profit: RM1.436mil or 6.95%

Use of fund
Purchase of well testing equipment: 42.70%
Working capital: 21.01%
Repayment of bank borrowing: 21.35%
Listing Expenses: 14.94%

Industry CAGR%
Crude oil 2015-2019: -2%
Crude oil 2017-2019: -4.3%
Natural Gas 2015-2019: 1.9%
Natural Gas 2017-2019: -1.3%
Petronas Capital Investment (Msia) 2015-2019: -8.2%
Petronas Capital Investment (Msia) 2017-2019: -17.8%

Competitor
Deleum: PE7.66
Dialog: PE32.96
Uzma: PE5.6

Conclusions
Good thing is:
1. Over the past 4 years revenue continue to increase.
2. Have good track record of business award 2014-2020 (prospectuses page 70-72)
3. Cover all stage of an O&G well's lifecycles.

The bad things:
1. ROE is not stable over past 4 years.
2. Total debt to current asset ratio still acceptable but a bit high.
3. No fixed dividend policy.
4. Business mainly focus in Malaysia.
5. Director remuneration percentage from gross profit over 3%.
6. Repayment of bank borrowing using IPO fund 21.35%
7.Overall CAGR O&G industry is growing at negative rate.

Conclusions
The company is in challenging environment (O&G CAGR is in negative rate). 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: RM0.41
Good time: RM0.54 (PE16)
Bad time: RM0.27 (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.

ACO Group Berhad

IPO Rating ( 1.75 out of 5.0 Stars)

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Date
Open to apply: 27/02/2020
Close to apply: 06/03/2020
Listing date: 18/03/2020

Share Capital
Market Cap: RM84 mil
Total Shares: 300mil shares (Public :15 mil, Company Insider/Miti/Private Placement: 43 mil)

Business
Distribution of electrical products and accessories.
Industrial User: 74.46%
Reseller: 25.54%

Fundamental
Market: Ace Market
Price: RM0.28 (EPS:0.0247)
P/E & ROE: PE11.34 (Prospectus book is) ROE13%
Cash & fixed deposit after IPO: RM0.05 per shares
NA after IPO: RM0.19
Total debt to current asset after IPO: 1.644 (Debt: 63.657 mil, Non-Current Asset: 38.712 mil, Current asset: 81.368mil)
Dividend policy: No fix dividend policy.

Financial Ratio
Trade receivable: 80 days
Trade Payable: 103 days
Inventory turnover: 105 days

Past Financial Proformance (Revenue, EPS)
2019 (until Nov): RM104.084 mil (EPS: 0.0237)
2019: RM134.373 mil (EPS: 0.0275)
2018: RM124.193 mil (EPS: 0.0173)
2017: RM114.509 mil (EPS: 0.0153)

Net Profit Margin
2019: 5.52%
2018: 4.03%
2017: 3.89%

After IPO Sharesholding
Ir. Tang Pee Tee @ Tan Chang Kim: 62.79%
Jin Siew Yen: 7.85%
Tan Yushan: 7.85%

Directors Remuneration for FYE2021 (from gross profit 2019)
Ir.Tang Pee Tee: RM0.502 mil
Tan Yushan: RM0.437 mil
Chai Poh Choo: RM0.218 mil
Yap Koon Roy: RM68k
Dr.Tee Chee Ghee: RM68k
Ir. Dr.Ng Kok Chiang: RM56k
Total director remuneration from gross profit: RM1.349 mil or 6.07%

Key Management Remuration  for FYE2021 (from gross profit 2019)
Ooi Gin Hui: RM250k-300k
Chong Su Yee: RM150k-200k
Lim Lee Hua: RM150k-200k
Low Swee Ching: RM150k-200k
Foong Kah Hong: RM150k-200k
key management remuneration from gross profit: RM0.85mil-RM1.1 mil or 3.83%-4.95%

Use of fund
New Sales Outlet: RM4.2 mil (25.86%)
New head office & distribution in Johor: RM2.5 mil (15.39%)
Purchase new trucks & upgrade IT system: RM2 mil (12.32%)
Working Capital: RM4.24 mil (26.11%)
Listing expenses: RM3.3 mil (20.32%)

Industry CAGR%
Cables & wires CAGR: 0.4% (2015-2019)
Electrical Distribution, Protection, & Control Devices: 16.5% (2015-2019, *2019 drop -5.8%)
Lighting Equipment: -0.6% (2015-2019)

Conclusions
Good thing is:
1. PE11.34 & ROE13% is reasonable.
2. Set up new sales outlet & office will impove sales but will not have fast impact on revenue.

The bad things:
1. Debt to currnet asset ratio is high.
2. No fix dividend policy.
3. Revenue grwoing around 8% per year, but after deduct inflation will have only little improvement.
3. Net profit margin is low than 10%.
4. Director fee is expensive.
5. CAGR% of their industry grow rate is not at healthy level.
6. Listing expenses 20.32% is too expensive.
7. Doesn't explain more on how to improve business line with online sales, because business should not too depend on normal distribution method.

Conclusions
Is not a attractive IPO. Unable to expect high grow in the company revenue in 1-2 year.

IPO Price: RM0.28
Good time: RM0.32 (PE13)
Bad time: RM0.19 (PE8)

*Valuation only valid until new quarter result release. Reader should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.

Innature Berhad

IPO Rating (2.25 out of 5.0 Stars)
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Date
Open to apply: 29/01/2020
Close to apply: 06/02/2020
Listing date: 20/02/2020

Share Capital
Market Cap: RM480 mil
Total Shares: 705.881mil shares (Public Ballting: 16.1315 mil, Company Insider/Miti/Private Placement: 161.142 mil)

Business
The group hold The Body Shop franchises (beauty product) and operate TBS point-of-sale in Malaysia, Vietnam, & Combodia.

Geo
M'sia: 85.3%
Vietnam: 14.7%

Fundamental
Market: Main Market
Price: RM0.68 (9mth eps: RM0.0352)
*if final retail price is lower the RM0.68, difference will refund to applicants.
P/E & ROE: PE13.3 (Prospectus book is) ROE24%
Cash & fixed deposit after IPO: RM0.0132 per shares
NA after IPO: RM0.17
Total debt to current asset after IPO: 1.175 (Debt: 60.027 mil, Non-Current Asset: 129.622 mil, Current asset: 51.074 mil)
*Intangible asset: 52.973 mil
Dividend policy: Suggest 30% dividend policy profit after tax.

Financial Ratio
Trade receivable: 4.65 days
Trade Payable: 63.37 days
Inventory turnover: 191.84 days

Past Financial Proformance (Revenue, EPS)
2019 (9mths): RM138.195 mil (EPS: 0.0352)
2018: RM184.474 mil (EPS: 0.0722)
2017: RM171.919 mil (EPS: 0.0381)
2016: RM159.902 mil (EPS: 0.0424)

Net Profit Margin
2019: 18.0%
2018: 19.6%
2017: 17.8%
2016: 16.9%

After IPO Sharesholding
Dato' Simon (indirect): 71.89%
Datin Mina (indirect): 74.89%
Darly Foong: 3%
Molly Fong: 0.02%
Tengku Zatashah: 0.01%

Directors Remuneration for FYE2019 (from gross profit 2018)
Dato' Simon: RM60k
Datin Mina: RM0.693 mil
Darly Foong: -
Molly Fong: RM0.866 mil
Dato' Maznah: RM90k
Tengku Zatashah: RM80k
Total director remuneration from gross profit: RM1.789 mil or 1.43%

Key Management Remuration  for FYE2019 (from gross profit 2018)
Jesse Siew: 500k-550k
Mae Chan: 400k-450k
Cang Yang: 400k-450k
Meng Leong: 250k-300k
Lily-Hue Nguyen: 800k-850k
Julie Wong: 300k-350k
key management remuneration from gross profit: RM2.650-2.950 mil or 2.13-2.37 %

Use of fund
Capital Expenditure: RM34.50 mil (68.5%)
Working Capital: RM3.80 mil (7.5%)
New Business development: RM5.7 mil (11.3%)
Listing expenses: RM6.37 mil (18.75%)

Industry CAGR%
Msia 2013-2018: 6.2% CARG on CPC (Cosmestics Personal Care)
Msia 2018-2023: 8.0% (forecast)
Vietnam 2013-2018: 12%
Vietnam 2018-2023: 11.6% (forecast)
*2002-2018 income per capital CAGR urban 14.8%, CAGR rural 16.1%
*Increase of female spending power.
*Increase of internet, mobile business & e-commerce.
*Growing of acceptance of natural products.
*Vietnam CPC (cosmetics personal care) CAGR 12% 2013-2018

Conclusions
Good thing is:
1. PE13 & ROE24% is attractive.
2. Every year net profit more than 15%
3. Revenue is increasing.
4. Director remuration & management fee is acceptable.
5. Cosmetics Personal Care market/industry expanding every year.
6. IPO fund is to expand into new business NATURA (also own by The Body Shop and Aesop brands).

The bad things:
1. Total debt is higher then current asset & cash per shares after IPO is low.
2. Net asset per shares RM0.17 & the group have Intangible asset 52.9mil (equal 29.3% of total asset).
3. Liting expenses 18.75% from IPO fund is too high (market average is around 11%-13%).

Conclusions
Is a attractive business. Increase of female spending power in Msia, Vietnam, & Combodia will continue to increase the growth of Comestics Personal Care industry. The business have intention to pay out 30% PAT as dividend, it should be an attractive dividend holding counter. This IPO is now perfer, because having Intangible asset 29.3% (normal acceptable level is less than 15%).

IPO Price: RM0.68
Good time: RM0.75 (PE16)
Bad time: RM0.42 (PE9)

*Valuation only valid until new quarter result release. Reader should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.

Comment from blog

Recently this blog received some bad comment from reader (kindly refer to comment under IPO Powerwell page)

Kindly please take note that this blog is to provide long-term view on the IPO counter.

Main responsibilities from this blog is to help reader avoid unnecessary losses.

Even if there is some possibilities of the counter posted can make  some profit, but in case the possibilities of losses is bigger than profit, blog will continue to rise opinion as "avoid".

IPO that rating at this blog at 2 stars & below (As per date 31/01/2020)

1. Pwrwell IPO RM0.25 > now RM0.25 (+/-)

2. Spring IPO 0.25 > now 0.225 (loss)

3. AME IPO 1.30 > now 1.76 (Profit)

4. SDS IPO 0.23 > now 0.215 (loss)

5. Mtag IPO 0.53 > now 0.505 (loss)

6. Tashin IPO 0.58 > now 0.265 (loss)

7. I-Stone IPO 0.16 > now 0.21 (Profit)

8. Meston IPO 0.16 > now 0.115 (loss)

*successful avoid losses rate 75% (6 over 8 counter to avoid)

IPO that rating 2.01 start & above (as per date 31/01/2020)

1. Slvest IPO 0.35 > now 0.775 (profit)

2. KHJ IPO 0.43 > now 0.25 (loss)

3. UMW IPO 0.82 > now 4.08 (profit)

4. HPMT IPO 0.56 > now 0.415 (loss)

5. Greatech IPO 0.61 > now 2.57 (profit)

6. Leonghup IPO 1.10 > now 0.765 (loss)

*Successful profit rate 50% (3 over 6 counter)

**this comparison use 2019 IPO & remember 2019 is a very bad year for market. This blog are still can filter out potential IPO.

**for more comparison can try compare more years like 2018,2017,2016 & 2015.

***This blog is encourage reader to point out their comment. However it will be great if reader comment base on data and facts. 

***Base on above data & facts, we are very happy in 2019 able to help reader avoid so many unnecessary losses. 

Powerwell Holdings Berhad

IPO Rating (1.00 out of 5.0 Stars)

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Date
Open to apply: 02/01/2020
Close to apply: 10/01/2020
Listing date: 22/01/2020

Share Capital
Market Cap: RM145.138 mil
Total Shares: 580.552mil shares (Public Ball0ting: 23.8 mil, Company Insider/Miti/Private Placement: 121.655mil)

Business
Manufacturing & trading of electricity distribution product.
-LV switchboards, MV switchgears, & related product.

Fundamental
Market: Ace Market
Price: RM0.25 (7mth eps: RM0.0059)
P/E & ROE: PE17.12 (Prospectus book is PE11.96), ROE9.12%
Cash & fixed deposit after IPO: RM0.0298 per shares
NA after IPO: RM0.11
Total debt to current asset after IPO: 0.45 (Debt: 32.834 mil, Non-Current Asset: 24.885 mil, Current asset: 72.383 mil)
Dividend policy: No formal dividend policy.

Financial Ratio
Trade receivable: 168.6 days
Trade Payable: 179.3 days
Inventory turnover: 127.5 days

Past Financial Proformance (Revenue, EPS)
2019 (7mths): RM44.499 mil (EPS: 0.0059)
*order books RM52.21, billed progressively 24mths
2018: RM105.352 mil (EPS: 0.0209)
2017: RM106.393 mil (EPS: 0.0239)
2016: RM92.539 mil (EPS: 0.0146)

Net Profit Margin
2019: 7.7%
2018: 11.5%
2017: 13.0%
2016: 9.1%

After IPO Sharesholding
PW Synergy 51% (Indirect Jason Tham, Catherine Wong)
Jason Tham: 7.18%
Catherine Wong: 7.02%
Ricky Lee: 3.04%

Directors Remuneration for FYE2019 (from gross profit 2018)
Tang Yuen Kin: RM57k
Dr.Tou Teck Yong: RM51k
Selma Enolil Binti Mustapha Khalil: RM51k
Jason Tham: RM0.867 mil
Catherine Wong: RM0.706 mil
Ricky Lee: RM0.664 mil
Total director remuneration from gross profit: RM2.396 mil or 8.31%

Key Management Remuration  for FYE2019 (from gross profit 2018)
Hoh Moon Heng: 300k-500k
Thong Kok Meng: 200k-250k
Ir.Leong Yek Loong: 350k-400k
Soh Wei Wei: 300k-350k
Chai Jsung Kek: 100k-150k
key management remuneration from gross profit: RM1.250mil-1.65mil or 4.34-5.73%

Use of fund
Capital Expenditure: RM10.270 (47%)
Certification expenditure : RM3.865 mil (17.69%)
Working Capital: RM3.615 mil (16.55%)
Listing expenses: RM4.1 mil (18.75%)

Competitors (Market Player PAT)
ABB Malaysia S/B: 3.85%
Tamco Switchgear: 2.8%
Toshiba Transmission & Distribution: losses
SRS Power Enginnering: 10.34%
Sun System Engineering S/B: 3.31%
INDKOM: 21.65%
Swift Energy S/B: 5.35%
Fuji SMBE: 7.56%
MCC Techique: 1.67%
Matrix Power Network: 1.27%
Gathergates Industries (M)S/B: losses

Conclusions
Good thing is:
1. Major sharesholder hold big portion on company stock.
2. Most of the IPO fund use to business expansion.

The bad things:
1.PE17.12 is not attractive.
2.Business natural need long time to collect payment trade receivable 168days.
3.Revenue & net profit margin is dropping over 3 years.
4.Director remuration + key management remuration is 12.65%-14.04% from gross profits, this is too high.
5.Compare with many competitors, most of them unable to make net profit over 10%, this industry is likely not given high margin return.
6.Listing in Ace Market.

Conclusions
Avoid this IPO.

IPO Price: RM0.25
Good time: RM0.16 (PE11)
Bad time: RM0.115 (PE8)