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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: 01/08/2022
Close to apply: 08/08/2022
Balloting: 10/08/2022
Listing date: 18/08/2022
Close to apply: 08/08/2022
Balloting: 10/08/2022
Listing date: 18/08/2022
Share Capital
Market cap: RM84.500 mil
Total Shares: 325 mil shares
Industry CARG (2018-2021)
Malaysia Mobile & Web App development industry CARG growth: 24.09%
Singapore Mobile & Web App development industry CARG growth: 26.97%
Agmo Group market size in Malaysia: 3.21% (16.52mil over 514.21mil in 2021)
Competitors Comparision (PAT% margin)
Agmo: 40.8% (if without tax exemption status is 27%)
Ciro Solution S/B: 9.33%
Ingenious Lab S/B: 34.83%
The Mobile Life S/B: 13.78%
Lizard Apps Malaysian Development Centre S/B: 11.79%
Others: -2.81% to 10.12%
Business (FYE 2022)
1. Development of mobile and web applications
2. Provision of digital platform-based services
3. Provision of subscription, hosting, technical support and maintenance services
1. Development of mobile and web applications
2. Provision of digital platform-based services
3. Provision of subscription, hosting, technical support and maintenance services
Revenue by Geo
M'sia:87.5%
S'pore: 8.2%
Sri Lanka: 3.9%
Others: 0.4%
M'sia:87.5%
S'pore: 8.2%
Sri Lanka: 3.9%
Others: 0.4%
Fundamental
1.Market: Ace Market
2.Price: RM0.26
3.P/E: 12.62 @ RM0.0206
4.ROE(Pro Forma III): 23.54%
5.ROE: 60.52%(FYE2022), 54.14%(FYE2021),26.58%(FYE2020), 34.38%(FYE2019)
6.NA after IPO: RM0.09
7.Total debt to current asset after IPO: 0.102 (Debt: 2.856mil, Non-Current Asset: 3.603mil, Current asset: 27.878mil)
8.Dividend policy: didn't have formal dividend policy.
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE 31Mar): RM16.525 mil (Eps: 0.0167, after shares consolidate EPS is 0.207),PAT: 40.5%
2021 (FYE 31Mar): RM9.040 mil (Eps: 0.0100),PAT: 44.3%
2020 (FYE 31Mar): RM6.214 mil (Eps: 0.0062),PAT: 40.2%
2019 (FYE 31Mar): RM5.435 mil (Eps: 0.0060),PAT: 44.4%
Major customer (2021)
Heydoc International S/B: 13.7%
Company A: 12.1%
Pos Malaysia Berhad: 7.4%
Petroliam Nasional Berhad: 3.6%
GFK Retail and Technology Malaysia S/B: 3/2%
***total 40%%
Major Sharesholders
Tan Aik Keong: 19.4%
Low Kang Wen: 7.2%
Tham Chin Seng: 6.6%
Agmoian S/B: 7.4%
Myeg: 25.8%
Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)
Total director remuneration: RM 0.545mil
key management remuneration: RM0.400mil - 0.500RMmil
total (max): RM1.045 mil or 14.16%
Use of funds
1. R&D Team: 15.6%
2. Sales, Marketing & Business development team: 11.1%
3. Techinical support & maintainance services: 16.1%
4. Training & development centre: 11.5%
5. Regional expansion to Singapore: 3.1%
6. Expansion of mobile & web application development & digital platform-based services: 26.8%
7. Setting up new office: 1.4%
8. Listing Expenses: 14.4%
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 attractive IPO. Company involve in sunrise industry & have good past performance. However investor need to take note on the company Pioneer status of MSC for tax exemption will expired on 10 Dec 2022, which will effect the company net profit.
*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.