CNERGENZ BERHAD

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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

Open to apply: 29/04/2022
Close to apply: 11/05/2022
Balloting: 13/05/2022
Listing date: 24/05/2022

Share Capital
Market cap: RM288.84 mil
Total Shares:  498mil shares
 
Industry & Competitor (PAT%)
SMT manufacturing solution CAGR (Southeast Asia): 3.7% (2016-21)
SMT manufacturing solution CAGR (Msia): 4.6% (2016-21)
1. JTU: 6.7% (Spore), 19% (Msia), -6.6% (Thai)
2. WKK: 9.4% (Thai), 3.7% (Msia), 10.1% (Spore)
3. Premtronic Sdn Bhd: 7.2%
4. Dual Matrix Sdn Bhd: 5.6%
5. JFE: 4.6% (Msia), 7.1% (Thai)
6. Others: -59.4% to 16.2%
***Cnergenz: 8.5%

Business (2021)
1. Commission new integrated production lines for client production facilities (help customer to build their production line)
2. Automate their production facilities (help client to build automate production line)
3. Sales of individual machinery, equipment and tools to electronics and semiconductor companies. 
4. After-sales technical support and training services
***Primarily customer: Integrated device manufacturers (IDMs), Outsourced semiconductor assembly and test service providers/houses (OSATs).
***Revenue (2021): 71.9% (Msia), 6.6% (Viet), 20.8% (Thai), 0.7% (Asia & Others). 
***Revenue (2019 before covis) 61.8% revenue from Vietnam. 
Major Customer (2021)
Revenue: 11.6% (CusA), 25.7% (CusB), 4.7% (CusC), 10.2% (CusD), 8.9% (CusE).  

Fundamental
1.Market: Ace Market
2.Price: RM0.58
3.P/E: 22.13 @ EPS0.0262 (prospecture using PE 19.27 @ EPS0.0301 @ blogger opinion not accept this). 
4.ROE(Pro Forma III): 10.35% (ProForma)
5.ROE: 18.36% (FYE2021), 24.34%(FYE2020), 39.10%(FYE2019), 43.12% (FYE2018)
6.NA after IPO: RM0.25
7.Total debt to current asset after IPO: 1.096 (Debt: 183.690mil, Non-Current Asset: 16.228mil, Current asset: 167.462mil)
8.Dividend policy: didn't have formal dividend policy. 

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FYE 31Dec): RM152.952 mil (Eps: 0.0262),PAT: 8.54%
2020 (FYE 31Dec): RM132.818 mil (Eps: 0.0323),PAT: 12.10%
2019 (FYE 31Dec): RM255.979 mil (Eps: 0.0613),PAT: 11.93%
2018 (FYE 31Dec): RM187.754 mil (Eps: 0.0468),PAT: 12.41%

After IPO Sharesholding
1. Lye Yhin Choy: 44.52%
2. Kong Chia Liang: 23.36%
3. Lye Thim Loong: 2.03%

Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM2.044 mil
key management remuneration: RM0.553 mil - RM0.700 mil
total (max): RM2.744 mil or 10.996%  
 
Use of fund
1.Expension of facility: 65.2%
2.R&D expenditure: 10.3%
3.Working capital: 17.2%
4.Lisiting expenses: 7.3%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is a normal rating IPO. However if factor Covis effect business performance, the company business expansion should be much better. Their Vietnam project contribute to their revenue 61.8% in 2019, on 2020 & 2021 this part is reduce heavily. The re-open of global boarder will have better opportunities their business. 

*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.