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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
Follow us on facebook: https://www.facebook.com/LCH-Trading-Signal-103388431222067/
***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.
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.