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Open to apply: 22/06/2021
Close to apply: 01/07/2021
Balloting: 05/07/2021
Listing date: 15/07/2021
Close to apply: 01/07/2021
Balloting: 05/07/2021
Listing date: 15/07/2021
Share Capital
Market Cap: RM177.384mil
Total Shares: 300mil shares
Market Cap: RM177.384mil
Total Shares: 300mil shares
Industry (Net Profit %)
Production Value of Livestock in Malaysia (CAGR): 6.6%
Growth Forecast for the Animal Health and Nutrition Industry (CAGR 2021-25): 4.3%
Production Value of Livestock in Malaysia (CAGR): 6.6%
Growth Forecast for the Animal Health and Nutrition Industry (CAGR 2021-25): 4.3%
Competitors compare (Profit before tax margin%)
Yenher: 14.6% (PE12.72)
Yenher: 14.6% (PE12.72)
Peterlabs: 6.8% (PE20.36)
AsiaVet: loss making
RhoneMa: 7.9% (PE17.16)
Danberg: 12%
Ritamix: 10.9% (PE23.49)
Sunzen: loss making
Business
Manufacturing and distribution of animal health and nutrition products.
Distribution: 44.26%
Manufacturing: 55.74%
Manufacturing and distribution of animal health and nutrition products.
Distribution: 44.26%
Manufacturing: 55.74%
Local market: 89.77%
Overseas market: 10.23%
Fundamental
1.Market: Main Market
2.Price: RM0.95 (EPS:RM0.0747)
3.P/E: PE12.72
4.ROE(Pro Forma III): 12.70%
5.ROE: 19.39%(2020), 18.73%(2019), 31.30%(2018), 22.09%(2017)
6.Cash & fixed deposit after IPO: 0.2144
7.NA after IPO: RM0.59
8.Total debt to current asset after IPO: 0.16 (Debt: 25.452mil, Non-Current Asset: 46.345mil, Current asset: 155.502mil)
9.Dividend policy: 40% PAT dividend policy.
1.Market: Main Market
2.Price: RM0.95 (EPS:RM0.0747)
3.P/E: PE12.72
4.ROE(Pro Forma III): 12.70%
5.ROE: 19.39%(2020), 18.73%(2019), 31.30%(2018), 22.09%(2017)
6.Cash & fixed deposit after IPO: 0.2144
7.NA after IPO: RM0.59
8.Total debt to current asset after IPO: 0.16 (Debt: 25.452mil, Non-Current Asset: 46.345mil, Current asset: 155.502mil)
9.Dividend policy: 40% PAT dividend policy.
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2020: RM202.635 mil (Eps: 0.0951),PAT%: 10.73%
2019: RM179.061 mil (Eps: 0.0838),PAT%: 15.07%
2018: RM181.109 mil (Eps: 0.1158),PAT%: 11.03%
2017: RM177.380 mil (Eps: 0.0808),PAT%: 11.05%
2020: RM202.635 mil (Eps: 0.0951),PAT%: 10.73%
2019: RM179.061 mil (Eps: 0.0838),PAT%: 15.07%
2018: RM181.109 mil (Eps: 0.1158),PAT%: 11.03%
2017: RM177.380 mil (Eps: 0.0808),PAT%: 11.05%
After IPO Sharesholding
CGH Holding: 45%
-Cheng Moon Tat: 7.5% direct, indirect 45%
-Cheng Mooh Kheng: 3.5% direct, indirect 45%
-Cheng Mooh Chye: 3.5% direct, indirect 45%
CGH Holding: 45%
-Cheng Moon Tat: 7.5% direct, indirect 45%
-Cheng Mooh Kheng: 3.5% direct, indirect 45%
-Cheng Mooh Chye: 3.5% direct, indirect 45%
Directors & Key Management Remuneration for FYE2021 (from gross profit 2020)
Total director remuneration: RM7.483
key management remuneration: RM0.70mil-0.95mil
total (max): RM8.433mil or 16.09%
Total director remuneration: RM7.483
key management remuneration: RM0.70mil-0.95mil
total (max): RM8.433mil or 16.09%
Use of fund
Construction of new GMP-Compliant Manufacturing Plant: 50.64%
Purchase of new machinery & equipment: 15.85%
Working capital: 27.30%
Listing expenses: 6.21%
Construction of new GMP-Compliant Manufacturing Plant: 50.64%
Purchase of new machinery & equipment: 15.85%
Working capital: 27.30%
Listing expenses: 6.21%
Highlight
1. Current manufacturing production utilisation rate at 100%.
2. New Manufacturing plant increase produce
-Complete feed & formulated product: 353.75% (573 to 2600 tones)
-Biotech animal feed ingredients: 422.65% (287 to 1,500 tones)
3. New Manufacturing plant to be completed build fourth quarter of 2023.
1. Current manufacturing production utilisation rate at 100%.
2. New Manufacturing plant increase produce
-Complete feed & formulated product: 353.75% (573 to 2600 tones)
-Biotech animal feed ingredients: 422.65% (287 to 1,500 tones)
3. New Manufacturing plant to be completed build fourth quarter of 2023.
4. Expand to more oversea market.
Good thing is:
1. PE12.72 below average competitor PE.
2. Debt is not high.
3. Have fixed dividend policy.
4. Revenue increase of 4 years.
5. Almost all IPO fund use to expand business.
6. by 2023 production increase 300%-400%
1. PE12.72 below average competitor PE.
2. Debt is not high.
3. Have fixed dividend policy.
4. Revenue increase of 4 years.
5. Almost all IPO fund use to expand business.
6. by 2023 production increase 300%-400%
The bad things:
1. Nett profit around 10%.
2. Industry growing CAGR is low 4.3%
3. Director & top management remuneration taking aways 16.09% gross revenue.
4. Three main director age above 52.
1. Nett profit around 10%.
2. Industry growing CAGR is low 4.3%
3. Director & top management remuneration taking aways 16.09% gross revenue.
4. Three main director age above 52.
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Is a little bit discounted IPO. With the new manafucturing facilites (to be completed by 2023), we should able to see better revenue grow in business. Business grwoth & risk refer to below chart.
Is a little bit discounted IPO. With the new manafucturing facilites (to be completed by 2023), we should able to see better revenue grow in business. Business grwoth & risk 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.