SYNERGY HOUSE BERHAD

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opinion and reader should take their own risk in investment decision.

Open to apply: 12 May 2023
Close to apply: 18 May 2023
Balloting: 22 May 2023
Listing date: 01 June 2023

Share Capital
Market cap: RM215 mil
Total Shares: 500 mil shares

Industry CARG (2019-2022)
1. Malaysia's furniture export: 7.63%
2. Malaysia's wood-based home furniture export: 7.13%
Industry competitors comparison (PAT%)
Synergy Group: 8.56% (PE12.93)
1. Homeriz: 16.85% (PE6.53)
2. Ecomate: 12.08% (PE38.75)
3. Pohuat: 11.95% (PE4.79)
4. Mobilia: 11.46% (PE10.41)
5. Others: -3.43% to 10.52%

Business (FYE 2022)
1. Sell Ready-to-assemble furniture to online retailers B2B & B2C sales model.
2. Focus on the design, development and sale of RTA home furniture (do not manafucture, outsource all manufacturing works)
3. B2B salme model are branded under third party brand, B2C can either own brand & third party brand. 
Revenue by Geo
1. UK: 42.4%
2. United Arab Emirates: 11.62%
3. USA: 39.01%
4. Others: 1.63%
5. Malaysia: 5.34% 

Fundamental
1.Market: Ace Market
2.Price: RM0.43
3.Forecast P/E: 12.93 @ RM0.0332
4.ROE(Pro Forma III): 21.46% 
5.ROE: 35.87% (FYE2022), 41.88%(FYE2021), 59.96%(FYE2020), 58.94%(FYE2019)
6.Net asset: RM0.28
7.Total debt to current asset IPO: 0.766 (Debt:74.595 mil, Non-Current Asset: 54.733mil, Current asset: 97.323mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 31Dec): RM194.093 mil (Eps: 0.0332),PAT: 8.56% 
2021 (FYE 31Dec): RM184.292 mil (Eps: 0.0288),PAT: 7.81%
2020 (FYE 31Dec): RM122.891 mil (Eps: 0.0242),PAT: 9.85%
2019 (FYE 31Dec): RM111.482 mil (Eps: 0.0218),PAT: 9.77%

Operating cashflow vs PBT
2022: 83.49%
2021: 49.01%
2020: 30.18%
2019: 75.17%

Major customer (2022)
1. Customer C Group: 19.33%
2. Hillsdale Furniture, LLC: 17.97%
3. Shop Direct Home Shopping Limited: 16.71%
4. RNA Resources Group Limited: 11.42%
5. Studio Retail Limited: 8.13%
***total 73.56%

Major Sharesholders
Tan Eu Tah: 74% (Indirect)
Teh Yee Luen: 74% (Indirect)
SH Holdings: 74% (Direct)

Directors & Key Management Remuneration for FYE2023 (vs 2022 GP)
Total director remuneration: RM1.886 mil
key management remuneration: RM0.65mil – RM0.75mil
total (max): RM2.636 mil or 5.69%

Use of funds
Purchase of inventories (E-commerce fulfilment centres in Muar): 29.07%
Purchase of racking system and forklifts: 4.36%
E-commerce advertising and promotions: 2.91%
Repayment of borrowings: 29.07%
Working capital: 22.38% 
Estimated listing expenses: 12.21%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is expensive IPO, as IPO PE still above the industry PE. 

*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.

CLOUDPOINT TECHOLOGY 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: 9 May 2023
Close to apply: 15 May 2023
Balloting: 18 May 2023
Listing date: 29 May 2023

Share Capital
Market cap: RM202.008 mil
Total Shares: 531.6 mil shares

Industry CARG (2017-2022)
Networking solutions industry size in Malaysia: 23.1%
Cybersecurity solutions industry size in Malaysia: 13.8%
Industry competitors comparison (PAT%)
Cloudpoint: 14.5% (PE14.5)
Infoline: 16.6% (PE32)
Sarawak Information Systems Sdn Bhd: 15.2%
Bridgenet Solutions Sdn Bhd: 7.9%
NTT Malaysia Solutions Sdn Bhd: 7.5%
Mesiniaga Berhad: 2.3% (PE12.91)
Others companies: 0.3% to 6.3% (pg154)
Dataprep Holdings Berhad: Losses

Business (FYE 2022)
IT solutions comprising enterprise and data centre networking, and cybersecurity solutions as well as professional IT services.
Provide services to companies in the financial services, insurance, telecommunications industries and other technology service providers

Fundamental
1.Market: Ace Market
2.Price: RM0.38
3.Forecast P/E: 15.38  @ RM0.0247
4.ROE(Pro Forma III): 63.24% 
5.ROE:  65.49%(FYE2021), 39.01%(FYE2020), 31.05%(FYE2019)
6.Net asset: RM0.27
7.Total debt to current asset IPO: 0.48 (Debt: 45.782mil, Non-Current Asset: 9.075mil, Current asset: 95.331mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 31Dec): RM90.595 mil (Eps: 0.0247),PAT: 14.5% 
2021 (FYE 31Dec): RM59.541 mil (Eps: 0.0193),PAT: 17.2%
2020 (FYE 31Dec): RM51.230 mil (Eps: 0.0157),PAT: 16.3%
2019 (FYE 31Dec): RM50.634 mil (Eps: 0.0123),PAT: 12.9%

Order Book
One-off project-based income model
2025: RM-
2024: RM9.739 mil
2023: RM32.073 mil
Recurring income model
2025: RM7.681mil
2024: RM8.950mil
2023: RM6.893 mil

Operating cashflow vs PBT
2022: 49.40%
2021: 24.17%
2020: 57.05%
2019: 77.08%

Major customer (2022)
Customer G: 35.3% (financial services industry)
Customer D: 28.5% (financial services industry)
Customer B: 8,3% (financial services industry)
Customer F: 7.8% (telecommunication industry)
Customer H: 3.4% (financial services industry)
***total 83.3%

Major Sharesholders
Era Jasakita: 52% (direct)
Choong Wai Hoong: 8.1% (direct), 52% (indirect)
Yew Choong Cheong: 8.1% (direct), 52% (indirect)

Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2022)
Total director remuneration: RM1.869mil
key management remuneration: RM0.75mil – RM0.85mil
total (max): RM2.719 mil or 11%

Use of funds
Business expansion: 32.9%
Relocation of corporate office: 19.3%
Working capital requirements: 39.1%
Estimated listing expenses: 8.7%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is a good IPO with discount value. 

*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.

EDELTEQ HOLDINGS 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: 09 May 2023
Close to apply: 17 May 2023
Balloting: 19 May 2023
Listing date: 30 May 2023

Share Capital
Market cap: RM127.808 mil
Total Shares: 532.535 mil shares

Industry CARG (2017-2021)
Semiconductor sales, Global, 2017-2022(e): 7.07%
IC Assembly and Test segment, Global, 2017-2022(e): 7.17%
Design and assembly of IC BIBs and supply of PCBs (PAT%)
Edelteq: 25.42%
KESP Sdn Bhd: losses (-27.16%)
Trio-Tech (M) Sdn Bhd: -3.31%
EDA Malaysia Industries Sdn Bhd: 2.27%
JAC Engineering Sdn Bhd: 0.74%
Design, development and assembly of ATE and factory automation (PAT%)
Vitrox: 26.2% (PE40)
Penta: 23.5% (PE40)
Greatech: 23.42% (PE41)
Mi: 16.91% (PE19)
QES: 11.39% (PE17)
Aemulues:17.06% (PE69)
Vis: 32.11% (PE15)
MMSV: 18.54% (14)

Business (FYE 2022)
1. Design and assembly of IC (integrated circuit) burn-in boards and supply of PCBs (ETSB and ETMSB): 52.2%
2. Supply and refurbishment of IC assembly and test consumables (ETSB): 19.46%
3. Design, development and assembly of ATE and factory automation (EVSB): 24.71%
4. Trading of operating supplies, spare parts and tools for IC assembly and testing(CESB and DTSB): 3.63%

Revenue by Geo
Malaysia: 77.61%
Overseas: 22.39%

Fundamental
1.Market: Ace Market
2.Price: RM0.24
3.P/E: 23.53 @ RM0.0102
4.ROE(Pro Forma III): 13.28%
5.ROE: 28.52%(FYE2022), 59.56%(FYE2021), 45.78%(FYE2020), 9.65%(FYE2019)
6.Net asset: RM0.08
7.Total debt to current asset after IPO: 0.26 (Debt: 7.167mil, Non-Current Asset: 20.899mil, Current asset: 27.228mil)
8.Dividend policy: 20% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 31Dec): RM24.360 mil (Eps: 0.0102),PAT: 22.33%
2021 (FYE 31Dec): RM23.950 mil (Eps: 0.0169),PAT: 37.62%
2020 (FYE 31Dec): RM16.685 mil (Eps: 0.0075),PAT: 23.88%
2019 (FYE 31Dec): RM12.374 mil (Eps: 0.0010),PAT: 4.46%

Operating cashflow vs PBT
2022: 57.13%
2021: 54.98%
2020: 86.02%
2019: 52.02%

Major customer (2023)
1. Infineon Technologies (Malaysia) Sdn Bhd: 37.28%
2. Customer A: 18.34% 
3. Comapany X: 11.07%
4. Customer D: 9.13%
5. Skyworks Global Pte Ltd: 6.61%
***total 82.43%

Major Sharesholders
1. Chin Yong Keong: 44.05%
2. Khong Chee Seong: 20.08%
3. Chin Yuen Fong: 8.72%

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)
Total director remuneration: RM1.297mil
key management remuneration: RM1.40mil - RM1.65mil
total (max): RM2.947mil or 25.4%

Use of funds
1. Construction of Proposed Batu Kawan Factory: 15.33%
2. Repayment of bank borrowings (Proposed Batu Kawan Factory): 42.71%
3. R&D: 12.90%
4. Working capital: 14.06%
5. Listing Expenses: 15.00%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall, not a discount IPO. However the company is have potential for growing in futures. 

*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.