Monday, May 23, 2022

LGMS 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: 20/05/2022
Close to apply: 26/05/2022
Balloting: 30/05/2022
Listing date: 08/06/2022

Share Capital
Market cap: RM228 mil
Total Shares:  456 mil shares
 
Industry & Competitor (Top 5 PAT% & Top 5 Loss)

Forecast CAGR 2022-2026: 13.9%
Top 5 (high PAT%)
1.LGMS: 36.5% (PAT)
2.Across Verticals: 29.6%
3.Pricewaterhousecoopers Advisory Services S/B: 28.7%
4.NTA Monitor: 17.7%
5.Ernst & Young: 16.8%
Top 5 (Losses /near losses)
1.BAE System: -0.6%
2.KPMG: -3.1%
3.Deloitte Business Adisory S/B: -2.2%
4.e-Lock Corporation S/B: 2.4%
5.Cisco system: 2.5%

Business (2021)
1.Cybersecurity assessment
2.Penetration testing
3.Cyber risk management and compliance
4.Provision of digital forensic and incident response services.
Revenue by Geo
Malaysia: 78.76%
Singapore: 11.58%
Others ASEAN: 3.38%
Asia: 4.69%
Others: 1.59%

Fundamental
1.Market: Ace Market
2.Price: RM0.50
3.P/E: 22.12 @ EPS0.0226
4.ROE(Pro Forma III): 14.49% (ProForma)
5.ROE: 36.71%(FYE2021), 37.19%(FYE2020), 33.32%(FYE2019), 38.16%(FYE2018)
6.NA after IPO: RM0.16
7.Total debt to current asset after IPO: 0.085 (Debt: 6.248mil, Non-Current Asset: 3.712mil, Current asset: 73.822mil)
8.Dividend policy: Did not have fixed dividend policy. 

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FYE 31Dec): RM28.262 mil (Eps: 0.0226),PAT: 36.46%
2020 (FYE 31Dec): RM20.649 mil (Eps: 0.0176),PAT: 39.10%
2019 (FYE 31Dec): RM20.563 mil (Eps: 0.0139),PAT: 30.78%
2018 (FYE 31Dec): RM17.387 mil (Eps: 0.0131),PAT: 34.46%

Top customer (2021)
Over 10% revenue: Customer A (14.15%)
5-10% revenue: Customer B (6.12%)
below 5%: 6 customer
Total major customer: 33.58% of company revenue.

After IPO Sharesholding
Fong Choong Fook: 53.86%
Goh Soon Sei: 16.1%
 
Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM1.476  mil
key management remuneration: RM0.65 mil - RM0.80 mil
total (max): RM2.276 mil or 8.05%  
 
Use of fund
1. Puchase of office: 39.39%
2. Expansion of workforce: 14.22%
3. Equipment and tools: 13.13%
4. Strategic business expansion: 16.85%
5. Working Capital: 7.66%
6. Lisiting expenses: 8.75%
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 good IPO with high grow industry. 

*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.a