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