Initial Public Offering (IPO): March 2022

Wednesday, March 30, 2022

CENGILD MEDICAL BERHAD

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Open to apply: 30/03/2022
Close to apply: 05/04/2022
Balloting: 08/04/2022
Listing date: 18/04/2022

Share Capital
Market Cap: RM mil (will depend on institution price demand)
Total Shares: 818.8 mil shares

Industry & Competitor (PAT%)
Life necessity industrial.
Cengild Medical: 9.9%
IHH: 11.4%
KPJ: 7.5%
Beacon hospital S/B: 18.1%
Thomsom Hospital: 10%
Others: -5% to 7.7%
*refer prospecture book pg146.

Business (2021)
Medical centre specialising in the diagnosis and treatment of gastrointestinal, liver diseases and obesity.
Consultant services: 37%
Nursing services: 30.1&%
Clinical support services: 31.90%

Fundamental
1.Market: Ace Market
2.Price: RM0.33 (IF Institution price lower then 0.33 will received the bal refund).
3.P/E: 27.01
4.ROE(Pro Forma III): 11.79% (FPE2021 after IPO)
5.ROE: 72.6% (FYE2021), 40%(FYE2020), 25.3%(FYE2019), losses(FYE2018)
6.NA after IPO: RM0.10
7.Total debt to current asset after IPO: 0.37 (Debt: 31.433mil, Non-Current Asset: 31.768mil, Current asset: 84.482mil)
8.Dividend policy: estimated 25% PAT as dividend policy.

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FPE 31oct): RM20.524 mil (Eps: 0.0037),PAT:10.7%
2021 (FPE 30Jun): RM63.470 mil (Eps: 0.0167),PAT:15.8%
2020 (FYE 30Jun): RM39.180 mil (Eps: 0.0066),PAT:10.1%
2019 (FYE 30Jun): RM28.183 mil (Eps: 0.0025),PAT:5.2%%
2018 (FYE 30Jun): RM11.679 mil (Eps: -0.0069),PAT:Losses

After IPO Sharesholding
1. Dato' Dr Tan Huck Joo: 16.67%
2. Emeritus Professor Dato’ Dr Goh Khean Lee: 7.35%
3. Dr Mohamed Akhtar Bin Mohamed Ditali Qureshi: 7.01%

Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM5.462 mil
key management remuneration: RM5.1mil - RM5.35mil
total (max): RM10.812mil or 20.05%

Use of fund
1.Expansion of existing medical centre: 18%
2.Estabilishing new medical centres: 51.38%
3. Working capital: 24.11%
4. Lisiting expenses: 6.51%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Is a good & attractive IPO with high growth record of business activities. PE27 is not expensive with the expand of another 2 new medical centre to boost income.

*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.

Tuesday, March 15, 2022

PAPPAJACK BERHAD

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Open to apply: 11/03/2022
Close to apply: 18/03/2022
Balloting: 23/03/2022
Listing date: 01/04/2022

Share Capital
Market Cap: RM200.4 mil
Total Shares: 668 mil shares

Industry & Competitor
Pawbroking industry in Malaysia CARG: 4.79%
Ar-Rahnu CARG: -9.77%
Industry market shares: 2.15% (2020, included Ar-Rahnu).

Business (2021)
Pawnbroking in Malaysia (Pajak Gadai) with interest rate 1.3%-2% pawn loan (per month).
Pawnbroking: 56.37%
Sale of unredeemed or bid pledges: 43.63%

Fundamental
1.Market: Ace Market
2.Price: RM0.30
3.P/E: 24.39
4.ROE(Pro Forma III): 4.02% (FPE2021)
5.ROE: 7.54%(FYE2020), 3.03%(FYE2019), 2.86%(FYE2018)
6.NA after IPO: RM0.24
7.Total debt to current asset after IPO: 0.11 (Debt: 18.883mil, Non-Current Asset: 10.487mil, Current asset: 169.337mil)
8.Dividend policy: no formal dividend policy.

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FPE 30Sep): RM25.407 mil (Eps: 0.0081),PAT:21.36%
2020 (FYE 31Dec): RM30.769 mil (Eps: 0.0123),PAT:26.67%
2019 (FYE 31Dec): RM19.207 mil (Eps: 0.0029),PAT:10.22%
2018 (FYE 31Dec): RM10.010 mil (Eps: 0.0024),PAT:15.69%

After IPO Sharesholding
1. TSE Sejahtera: 47.85%
2. Lim Boon Hua: 50.17% (indirect)
3. Law Book Ching: 47.85% (indirect)
4. Lim Siew Fang: 47.85% (indirect)
5. Lee Kooi Lan: 47.85% (indirect)

Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM0.441mil
key management remuneration: RM0.305mil
total (max): RM0.746mil or 5.4%

Use of fund
1.Expansion of pawnbroking outlets: 38.36%
2. Cash capital for existing 20 pawnbroking outlets: 54.05%
3. Listing expenses: 7.59%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Is a attractive IPO on the high interest return business but also come with high risk (category as high risk high return investment).

Tuesday, March 1, 2022

Farm Fresh Berhad

***Important***Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision

Open to apply: 28/02/2022
Close to apply: 08/03/2022
Balloting: 11/03/2022
Listing date: 22/03/2022

Share Capital
Market Cap: RM mil (will based on final instutional price for cal)
Total Shares: 1,857,954,837 shares

Industry Competitor
Farm fresh: PE34.6, PAT margin 6.7% (est without the tax penalty PAT 13.4%)
Nestle: PE55.76, PAT margin 10.21%
Dlady: PE8.39, PAT margin 6.67%

Business (2021)
Farming, manufacturing, and distribution of various dairy product and plant based product.
Malaysia: 84.6% (revenue)
Australia: 11.5%
Singapore: 3.8%
Brunei: 0.1%

Fundamental
1.Market: Main Market
2.Price: RM1.35 (if instutional price is lower, then retail price will refund the difference)
3.P/E: 34.6 (EPS:0.039, prospecture book assume without the tax penalty)
4.ROE(Pro Forma III): 8.7% (FPE2021)
5.ROE: 13.62%(FYE2021), 17.38%(FYE2020), 16.8%(FYE2019)
6.NA after IPO: RM0.31
7.Total debt to current asset after IPO: 0.7676 (Debt: 404.579mil, Non-Current Asset: 445.904mil, Current asset: 527.087mil)
8.Dividend policy: 24% PAT dividend policy.

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FPE Sep): RM257.187 mil (Eps: 0.031),PAT:19.2%
2021 (FYE 31Mar): RM490.498 mil (Eps: 0.022),PAT:6.7%
2020 (FYE 31Mar): RM303.067 mil (Eps: 0.021),PAT:11.3%
2019 (FYE 31Mar): RM178.227 mil (Eps: 0.026),PAT:15.4%

After IPO Sharesholding

1. Loi Tuan Ee: 44.52% (indirect)
2. Rainforest: 30.73%
3. Farmchoice: 13.79%
4. Agrifood: 11.8%
5. Khazanah: 11.8% (indirect)
6. Loi Foon Kion: 30.73% (indirect)

Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM2.588mil
key management remuneration: RM3.5mil - 3.75mil
total (max): RM6.338mil or 4.50%

Use of fund
1.New manufacturing hub, dairy farm, & integrated processing facilities: 46.5%
2.Expansion production faiciliy in Australia: 19.9%
3.Regional expansin outside of Malaysia: 13.3%
4. Working capital: 13.6%
5. Listing expenses: 6.7%

Highlight
1. Use 79.7% IPO fund to expand business (will increase production > increase revenue) 24mths to completed.
2. Expand Autralia production.
3. Expand to Southeast Asia region within 24 months.
4. UPM facilitiy commence operations in March 2022.

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)

Is a good IPO but with a bit expensive offering price.