OPPSTAR 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: 22 Feb 2023
Close to apply: 03 Mar 2023
Balloting: 07 Mar 2023
Listing date: 15 Mar 2023

Share Capital
Market cap: RM400.806mil
Total Shares: 636.200mil shares

Industry CARG (2017-2022)
Semiconductor sales (Global), 2016-2022(e): 9.37%
IC design sales (Global), 2016-2022(e): 8.83%
Industry competitors comparison (net profit%)
Oppstar Group: 32.89%
UST Global (Malaysia) Sdn Bhd (part of UST group of companies):10.94%
Key ASIC Berhad: -63.58%
Infinecs Systems Sdn Bhd: 14.22%
Symmid Corporation Sdn Bhd: -51.23%
Aricent Technologies Malaysia Sdn Bhd (part of Capgemini group of companies): -0.63%
IC Microsystems Sdn Bhd: -92.18%
Other global industry player: 0.62% to 15.28%

Business (FYE 2021)
IC design services covering front-end design, back-end design and complete turnkey solutions.
- mainly focus on the design of ICs such as ASICs, SoCs, CPUs and FPGAs.
- Post-silicon validation services, training and consultancy services
Revenue by Geo
Local: 23.59%
Oversea: 76.41%

Fundamental
1.Market: Ace Market
2.Price: RM0.63
3.P/E: 19.33 @ RM0.0163 (FYE2023, 6mths)
4.ROE(Pro Forma III): 8.19%
5.ROE: 83.35%(FYE2023), 115%(FYE2022), 254%(FYE2021), 31.28%(FYE2020)
6.Net asset: RM0.43
7.Total debt to current asset after IPO: 0.058 (Debt: 7.925mil, Non-Current Asset: 3.039mil, Current asset: 134.846mil)
8.Dividend policy: PAT 25% dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 30Sep, 6mths): RM28.815 mil (Eps: 0.0163),PAT: 36.08%
2022 (FYE 31Mar): RM50.561 mil (Eps: 0.0261),PAT: 32.89%
2021 (FYE 31Mar): RM29.262 mil (Eps: 0.0123),PAT: 26.65%
2020 (FYE 31Mar): RM15.965 mil (Eps: 0.0007),PAT: 2.64%

Operating cashflow vs PBT
2023: 83%
2022: 75%
2021: 100%
2020: 113%

Order Book
FYE 2023: RM13.064 mil  
FYE 2024: RM21.228 mil 

Major customer (2023)
1. Xiamen KirinCore: 62.67%
2. Customer A group of companies: 12.33%
3. Customer E group of companies: 9.98%
4. Customer B: 7.17%
5. Synkom Co.Ltd: 3.09%
***total 95.24%

Major Sharesholders
1. Ng Meng Thai: 20.06% (direct)
2. Cheah Hun Wah: 21.09% (direct)
3. Tan Chun Chiat: 13.40% (direct)
4. Bigcore Techonology: 3.34% (direct)

Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM2.176mil
key management remuneration: RM1.20mil - RM1.35mil
total (max): RM3.526mil or 20.76% amend typo to 11.70%

Use of funds
1. Business expansion through expansion of workforce: 47.96%
2. Establishment of new offices : 23.98%
3. R&D expenditure: 11.51%
4. Working capital: 12.14%
5. Listing Expenses: 4.41%

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 fair IPO with high growth opporunities. But investor need take note on the high depend of single China company which contribute 62.67% of their revenue. 

*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.