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Open to apply: 23/02/2021
Close to apply: 02/03/2021
Listing date: 16/03/2021
Close to apply: 02/03/2021
Listing date: 16/03/2021
Share Capital
Market Cap: RM386.543mil
Total Shares: 805.298 mil shares (Public apply: 40 mil, Company Insider/Miti/Private Placement/other: 161.595mil)
Market Cap: RM386.543mil
Total Shares: 805.298 mil shares (Public apply: 40 mil, Company Insider/Miti/Private Placement/other: 161.595mil)
Industry (Net Profit %)
Property development
Property development
Business
Business mainly in Melaka
Residential: 51%
Mixed development: 49%
Business mainly in Melaka
Residential: 51%
Mixed development: 49%
Fundamental
1.Market: Ace Market
2.Price: RM0.48 (EPS:RM0.054)
3.P/E: PE8.9
4.ROE(Pro Forma III): 10.36%
5.ROE: 12.60%(2019), 16.19%(2018), 22.27%(2017)
6.Cash & fixed deposit after IPO: RM0.1153 per shares
7.NA after IPO: RM0.54
8.Total debt to current asset after IPO: 0.56 (Debt: 214.877mil, Non-Current Asset: 266.719mil, Current asset: 381.972mil)
9.Dividend policy: 20% of PAT as dividend.
1.Market: Ace Market
2.Price: RM0.48 (EPS:RM0.054)
3.P/E: PE8.9
4.ROE(Pro Forma III): 10.36%
5.ROE: 12.60%(2019), 16.19%(2018), 22.27%(2017)
6.Cash & fixed deposit after IPO: RM0.1153 per shares
7.NA after IPO: RM0.54
8.Total debt to current asset after IPO: 0.56 (Debt: 214.877mil, Non-Current Asset: 266.719mil, Current asset: 381.972mil)
9.Dividend policy: 20% of PAT as dividend.
Past Financial Performance (Revenue, EPS)
2020 (9mths): RM100.028 mil (EPS:0.022)
2019: RM232.988 mil (EPS:0.054)
2018: RM259.141 mil (EPS:0.061)
2017: RM359.511 mil (EPS:0.078)
2020 (9mths): RM100.028 mil (EPS:0.022)
2019: RM232.988 mil (EPS:0.054)
2018: RM259.141 mil (EPS:0.061)
2017: RM359.511 mil (EPS:0.078)
Net Profit Margin
2020 (9mths):19.1%
2019: 18.6%
2018: 18.8%
2017: 17.49%
2020 (9mths):19.1%
2019: 18.6%
2018: 18.8%
2017: 17.49%
After IPO Sharesholding
Teo Lay Ban: 41.6%
Teo Lay Lee: 11.1%
Teo Siew May: 11.1%
Teo Lay Ban: 41.6%
Teo Lay Lee: 11.1%
Teo Siew May: 11.1%
Directors & Key Management Remuneration for FYE2021 (from gross profit 2019)
Total director remuneration: RM1.678 mil or 2.08%
key management remuneration: RM0.90 mil-1.05mil or 1.12%-1.30%
total (max): RM2.728mil or 3.38%
Total director remuneration: RM1.678 mil or 2.08%
key management remuneration: RM0.90 mil-1.05mil or 1.12%-1.30%
total (max): RM2.728mil or 3.38%
Use of fund
Land acquisition: 45.3%
Working capital for project development: 42.8%
Repayment of bank borrowings: 5.2%
Listing Expenses: 6.7%
Land acquisition: 45.3%
Working capital for project development: 42.8%
Repayment of bank borrowings: 5.2%
Listing Expenses: 6.7%
Good thing is:
1. IPO price fair with the company value, PE8.9.
2. Have profit margin of 17%-19% rannge.
3. Directors & Key Management Remuneration is not too expensive.
1. IPO price fair with the company value, PE8.9.
2. Have profit margin of 17%-19% rannge.
3. Directors & Key Management Remuneration is not too expensive.
The bad things:
1. Property development industry is effected by current overall economic.
2. ROE is less than 15%
1. Property development industry is effected by current overall economic.
2. ROE is less than 15%
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
Overall is fair valuation, but current economic situation is not encouraging property market to grow. Property market will need to wait at least more than 2 year to better demand. Invest in this IPO might need more time to wait and need to continue monitoring their performance. For business growth & business risk please refer to below chart.
Overall is fair valuation, but current economic situation is not encouraging property market to grow. Property market will need to wait at least more than 2 year to better demand. Invest in this IPO might need more time to wait and need to continue monitoring their performance. For business growth & business risk please refer to 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.