IPO

Monday, May 9, 2022

UNITRADE INDUSTRIES 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: 28/04/2022
Close to apply: 30/05/2022
Balloting: 02/06/2022
Listing date: 14/06/2022

Share Capital
Market cap: RM500 mil
Total Shares:  1.5625bil shares
 
Industry & Competitor (PAT%)
UIB Group: 2.8%
Engtex: 1.62%
Chin Hin: 1.74%
AYS: 3.25%
Chuan Huat Resources: 2.33%
HapSeng: -0.37%
Syn Tai Hung Trading S/B: 6.94%

Business (2021)
Wholesale and distribution of building materials.
Malaysia: 99.7%
Overseas: 0.3%

Fundamental
1.Market: Ace Market
2.Price: RM0.32
3.P/E: 17.78 @ EPS0.0180 (prospecture using PE11.9 @ EPS0.027 @ blogger opinion not accept this). 
4.ROE(Pro Forma III): 9.02% (ProForma)
5.ROE: 12.89% (FYE2021), 9.45%(FYE2020), 10.34%(FYE2019)
6.NA after IPO: RM0.20
7.Total debt to current asset after IPO: 0.84 (Debt: 612.751mil, Non-Current Asset: 197.952mil, Current asset: 726.478mil)
8.Dividend policy: 30% PAT dividend policy. 

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE 30Mar): RM756.384 mil (Eps: 0.0180),PAT: 3.8%
2021 (FYE 31Nov): RM1.025 bil (Eps: 0.0180),PAT: 2.8%
2020 (FYE 31Nov): RM1.077 bil (Eps: 0.0120),PAT: 1.9%
2019 (FYE 31Nov): RM1.048 4. bil (Eps: 0.0120),PAT: 2.0%

After IPO Sharesholding
1. Sim Keng Chor : 55% (indirect)
2. Teh Beng Khim : 61.2% (indirect)

Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM5.109 mil
key management remuneration: RM3.00mil - RM3.15mil
total (max): RM8.259 mil or 9.31%  
 
Use of fund
1. Working capital: 50.5%
2. Repayment bank borrowing: 39.8%
3. Capital expenditure for pipe fabrication centre: 5%
4. Lisiting expenses: 4.7%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is not an attractive IPO due to their nature of business is on low PAT% 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.