Copyright@http://lchipo.blogspot.com/
Follow us on facebook: https://www.facebook.com/LCH-Trading-Signal-103388431222067/
Follow us on facebook: https://www.facebook.com/LCH-Trading-Signal-103388431222067/
Open to apply: 02/06/2021
Close to apply: 10/06/2021
Balloting: 14/06/2021
Listing date: 23/06/2021
Close to apply: 10/06/2021
Balloting: 14/06/2021
Listing date: 23/06/2021
Share Capital
Market Cap: RM206.389mil
Total Shares: 644.968mil shares (Public apply: 32.248mil, Company Insider/Miti/Private Placement/other: 138.667mil)
Industry
Solar PV Installation CAGR: 50.3% (2015-2019)
Solar PV Module price: CAGR -21.1% (RM/W)
Competitors (PE)
Solarevst: 52.63
Samaiden: 60.4
Business
1.Solar Division: Design, Supply & Installation of solar PV system and power plants.
2.ELP division: Supply and installation of ELP System.
3.Trading Division: Distribution of electrical products and accessories.
Market Cap: RM206.389mil
Total Shares: 644.968mil shares (Public apply: 32.248mil, Company Insider/Miti/Private Placement/other: 138.667mil)
Industry
Solar PV Installation CAGR: 50.3% (2015-2019)
Solar PV Module price: CAGR -21.1% (RM/W)
Competitors (PE)
Solarevst: 52.63
Samaiden: 60.4
Business
1.Solar Division: Design, Supply & Installation of solar PV system and power plants.
2.ELP division: Supply and installation of ELP System.
3.Trading Division: Distribution of electrical products and accessories.
Fundamental
1.Market: Ace Market
2.Price: RM0.32 (EPS:RM0.021)
3.P/E: PE15.2
4.ROE(Pro Forma III): 13%
5.ROE: 21.3%(2020), 31.2%(2019), 29.5%(2018), 36.6%(2017)
6.Cash & fixed deposit after IPO: RM0.0586 per shares
7.NA after IPO: RM0.16
8.Total debt to current asset after IPO: 0.446 (Debt: 50.937mil, Non-Current Asset: 41.109mil, Current asset: 114.178mil)
9.Dividend policy: no formal dividend policy.
Past Financial Performance (Revenue, Earning Per shares)
2020: RM125.562 mil (Eps: 0.0210)
2019: RM119.521 mil (Eps: 0.0230)
2018: RM120.129 mil (Eps: 0.0170)
2017: RM72.830 mil (Eps: 0.0150)
Net Profit Margin
2020: 10.8%
2019: 12.4%
2018: 9.2%
2017: 13.0%
Order book
2021: RM117.2 mil
2022: RM24.8 mil
2023: RM11.5 mil
After IPO Sharesholding
Chin Soo Mau: 34.9%
Tai Yee Chee: 10.4%
Wee Chek Aik: 8.6%
Hextar (Stock code 5151): 19.6%
Directors & Key Management Remuneration for FYE2021 (from gross profit 2020)
Total director remuneration: RM2.548 mil or 6.68%
key management remuneration: RM0.90 mil - 1.05mil or 2.36%- 2.75%
total (max): RM3.598 mil or 9.4%
Use of fund
Contrusction of new head office and operation facilities: 40.6%
Working capital: 28.6%
Repayment of bank borrowings: 22.5%
Listing expenses: 8.3%
Good thing is:
1. PE15 is a fair value.
2. Sunrise industry (clean energy demand increase, lower solar PV module price).
3. Competitor from same industry with high PE (over 50).
4. Revenue increase over 4 years.
2020: RM125.562 mil (Eps: 0.0210)
2019: RM119.521 mil (Eps: 0.0230)
2018: RM120.129 mil (Eps: 0.0170)
2017: RM72.830 mil (Eps: 0.0150)
Net Profit Margin
2020: 10.8%
2019: 12.4%
2018: 9.2%
2017: 13.0%
Order book
2021: RM117.2 mil
2022: RM24.8 mil
2023: RM11.5 mil
After IPO Sharesholding
Chin Soo Mau: 34.9%
Tai Yee Chee: 10.4%
Wee Chek Aik: 8.6%
Hextar (Stock code 5151): 19.6%
Directors & Key Management Remuneration for FYE2021 (from gross profit 2020)
Total director remuneration: RM2.548 mil or 6.68%
key management remuneration: RM0.90 mil - 1.05mil or 2.36%- 2.75%
total (max): RM3.598 mil or 9.4%
Use of fund
Contrusction of new head office and operation facilities: 40.6%
Working capital: 28.6%
Repayment of bank borrowings: 22.5%
Listing expenses: 8.3%
Good thing is:
1. PE15 is a fair value.
2. Sunrise industry (clean energy demand increase, lower solar PV module price).
3. Competitor from same industry with high PE (over 50).
4. Revenue increase over 4 years.
The bad things:
1. Use 22.5% of IPO fund to pay debt.
2. Drop in ROE%
3. No formal dividend policy.
4. Director & management remuneration near to 10%.
1. Use 22.5% of IPO fund to pay debt.
2. Drop in ROE%
3. No formal dividend policy.
4. Director & management remuneration near to 10%.
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Consider a an attractive IPO. The offer price of IPO RM0.32 (PE15) much lower compare to same industry competitor. Overall business activities is on sunrise industry & the industry expected to continue growth globally.
Consider a an attractive IPO. The offer price of IPO RM0.32 (PE15) much lower compare to same industry competitor. Overall business activities is on sunrise industry & the industry expected to continue growth globally.
*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.