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Open to apply: 06/09/2021
Close to apply: 17/09/2021
Balloting: 21/09/2021
Listing date: 29/09/2021
Close to apply: 17/09/2021
Balloting: 21/09/2021
Listing date: 29/09/2021
Share Capital
Market Cap: RM93.395 mil
Total Shares: 194.573 mil shares
Industry CAGR
CAGR 2020-2025: 3.2% (forecast)
Competitors compare (Net profit margin%)
CEKD: 30.2%
Kentway: 0.3%
Marbach: 18.1%
Shanyu: 20.2%
Yip Lian: 11.2%
Business
Manufacturer of die-cutting moulds & trading of related consumables, tools and accessories.
Malaysia: 85.6% (2020 revenue)
Other countries: 14.4% (2020 revenue)
Fundamental
1.Market: Ace Market
2.Price: RM0.48
3.P/E: 15.5 (EPS: 0.031)
4.ROE(Pro Forma III): 18.03% (forecast using 7mth FPE)
5.ROE: 16.10%(2020), 27.72%(2019), 28.86%(2018)
6.Cash & fixed deposit after IPO: 0.069
7.NA after IPO: RM0.31
8.Total debt to current asset after IPO: 0.44 (Debt: 11.245mil, Non-Current Asset: 46.1mil, Current asset: 25.3mil)
9.Dividend policy: doest not have formal dividend policy.
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (7mths): RM17.705 mil (Eps: 0.0207),PAT%: 22.7%
2020: RM26.355 mil (Eps: 0.0310),PAT%: 22.9%
2019: RM28.363 mil (Eps: 0.0278),PAT%: 19.1%
2018: RM28.732 mil (Eps: 0.0350),PAT%: 25.4%
After IPO Sharesholding
Yap Tian Tion: 74% (indirect)
Yap Kai Ning: 74% (indirect)
Directors & Key Management Remuneration for FYE2021 (from gross profit 2020)
Total director remuneration: RM0.822 mil
key management remuneration: RM0.30 mil- 0.7mil
total (max): RM1.522 mil or 11.45%
Market Cap: RM93.395 mil
Total Shares: 194.573 mil shares
Industry CAGR
CAGR 2020-2025: 3.2% (forecast)
Competitors compare (Net profit margin%)
CEKD: 30.2%
Kentway: 0.3%
Marbach: 18.1%
Shanyu: 20.2%
Yip Lian: 11.2%
Business
Manufacturer of die-cutting moulds & trading of related consumables, tools and accessories.
Malaysia: 85.6% (2020 revenue)
Other countries: 14.4% (2020 revenue)
Fundamental
1.Market: Ace Market
2.Price: RM0.48
3.P/E: 15.5 (EPS: 0.031)
4.ROE(Pro Forma III): 18.03% (forecast using 7mth FPE)
5.ROE: 16.10%(2020), 27.72%(2019), 28.86%(2018)
6.Cash & fixed deposit after IPO: 0.069
7.NA after IPO: RM0.31
8.Total debt to current asset after IPO: 0.44 (Debt: 11.245mil, Non-Current Asset: 46.1mil, Current asset: 25.3mil)
9.Dividend policy: doest not have formal dividend policy.
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (7mths): RM17.705 mil (Eps: 0.0207),PAT%: 22.7%
2020: RM26.355 mil (Eps: 0.0310),PAT%: 22.9%
2019: RM28.363 mil (Eps: 0.0278),PAT%: 19.1%
2018: RM28.732 mil (Eps: 0.0350),PAT%: 25.4%
After IPO Sharesholding
Yap Tian Tion: 74% (indirect)
Yap Kai Ning: 74% (indirect)
Directors & Key Management Remuneration for FYE2021 (from gross profit 2020)
Total director remuneration: RM0.822 mil
key management remuneration: RM0.30 mil- 0.7mil
total (max): RM1.522 mil or 11.45%
Use of fund
Acquisition of factory for Hotstar: 36.2%
Purchase of new machineries: 12.4%
Upgrade and development of computer softwares and server: 5.4%
Marketing activities: 6.2%
General working capital: 11%
Repayment of bank borrowing: 16.5%
Listing expenses: 12.3%
Highlight
1. Continue growth of Electrical & electronic manufacturing in ASEAN.
2. Growth of paper and paper product industry.
3. Both factorys is to consolidate 3 old rented factory into new factory (1 by IPO fund, & 1 by financed through bank borrowings and/or internally generated funds.
Good thing is:
1. ROE is above 15%.
2. Consolidate factory will increase efficientcy.
3. Paper moulds and E&E industry both still is sunrise industry.
The bad things:
1. High competitor environment (M'sia have around 40 die-cutting moulds manufacturing.
2. Director & key management remuneration over 10% company gross profit.
3. Use 16.5% IPO fund to repay bank borrowing.
4. Factory consolidate did not represent add addional factory line to expand business.
5. 2018-2020 revenue did not growth.
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Average IPO. PE15.5 is just around fair PE. The attractive part in their business is the involved in produce steel related product for E&E industry which is the industry in growing.
*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.
Average IPO. PE15.5 is just around fair PE. The attractive part in their business is the involved in produce steel related product for E&E industry which is the industry in growing.
