GLOSTREXT BERHAD

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

Open to apply: 27 July 2023
Close to apply: 02 Aug 2023
Balloting: 4 Aug 2023
Listing date: 15 Aug 2023

Share Capital
Market cap: RM77.33779 mil
Total Shares: 407.041 mil shares

Industry CARG
The geotechnical instrumentation and testing industry size (Singapore), 2017 – 2021: 5.76%
The geotechnical instrumentation and testing industry size (Malaysia), 2017 – 2021: -ve%
Industry competitors comparison (PAT%)
Glostrext Group: 19.04% (FYE2023) 
Ryobi Geotechnique International Pte Ltd: 20.01%
Element Geotechnical Testing (S) Pte Ltd: 24.77%
Aps Asia Pda Enterprise Pte Ltd: 19.04%
Others: -4.67% to 17.9%

Business (FYE 2023) 
Geotechnical instrumentation service provider. 
- customer type: Piling companies & construction companies. 
1. Pile instrumentation and static load test: 80.9%
2. Structural and ground instrumentation and monitoring services: 17.23%
3. Others: 1.87%
Revenue by Geo (FYE2023)
1. Singapore: 64.33%
2. Malaysia: 35.01%
3. Cambodia: 0.66%

Fundamental
1.Market: Ace Market
2.Price: RM0.19
3.Forecast P/E: 22.35 @ EPS0.0085 (adjusted EPS) 
4.ROE(Pro Forma II): 9.8% 
5.ROE: 11.68%(FYE2023), 24.36%(FYE2022), 9.45%(FYE2021), 18.64%(FYE2020)
6.Net asset: RM0.13
7.Total debt to current asset IPO: 0.227 (Debt: 7.866mil, Non-Current Asset: 25.233mil, Current asset: 34.654mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Mar): RM21.616 mil (Eps: 0.0101),PAT: 19.04% 
2022 (FYE 31Mar): RM26.574 mil (Eps: 0.0166),PAT: 27.61%
2021 (FYE 31Mar): RM16.966 mil (Eps: 0.0055),PAT: 14.12%
2020 (FYE 31Mar): RM23.963 mil (Eps: 0.0100),PAT: 18.47%

Order Book/Contract
Currently have: RM8.935mil

Operating cashflow vs PBT
2023: 15.41%
2022: 114%
2021: 113%
2020: 98.68%

Major customer (FYE 2023)
1. Asia Piling Co Pte Ltd: 13.83%
2. TPW Engineering Pte Ltd: 11.11%
3. CS Bored Pile System Pte Ltd: 8.79%
4. Econpile (M) Sdn Bhd: 7.11%
5. Aneka Jaringan Sdn Bhd: 4.89%
***total 45.73%

Major Sharesholders
Ir Dr Lee Sieng Kai: 45.63% (direct)
Tan Ah Huat: 18.41% (direct)

Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2023)
Total director remuneration: RM1.127mil

key management remuneration: RM1.40 mil – RM1.550 mil
total (max): RM2.677 mil or 23.91%

Use of funds 
1. Business expansion and working capital: 58.23%
2. Research and development: 8.95%
3. Repayment of bank borrowings: 16.41%
4. Estimated listing expenses: 16.41%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is still low grow 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.

MYMBN 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: 30 June 2023
Close to apply: 10 Jul 2023
Balloting: 13 July 2023
Listing date: 25 July 2023

Share Capital
Market cap: RM81.060 mil
Total Shares: 386,000,000 shares

Industry CARG
Historical Market Size (In Terms of Export Value) and Growth Forecast for the EBN Industry in Malaysia, 2022-2027f: 34%
Industry competitors comparison (net profit%)
1. MYMBN: 6.28%
2. Dama Dingji: 0.9%
3. Ming Feng: 9.9%
4. Rickson: 1.9% 

Business (FYE 2022)
Processing and sale of EBN (Edible bird’s nests), RUCEBN (Raw unclean edible bird’s nest)
Revenue by Geo
China: 98.55%
Malaysia: 1.45%

Fundamental
1.Market: Ace Market
2.Price: RM0.21
3.Forecast P/E: PE18.75 (FYE2022 EPS0.0112)
4.ROE(Pro Forma III): 13.22%
5.ROE:  28.61%(FPE2022), 62.41%(FYE2021), 79.01%(FYE2020), 22%(FYE2019)
6.Net asset: RM0.0847
7.Total debt to current asset: 0.194 (Debt: 6.115mil, Non-Current Asset: 7.235mil, Current asset: 31.569mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 31Dec): RM68.871 mil (Eps: 0.0112), PAT: 6.28%
2021 (FYE 31Dec): RM91.556 mil (Eps: 0.0174),PAT: 7.35%
2020 (FYE 31Dec): RM44.408 mil (Eps: 0.0083),PAT: 7.22%
2019 (FYE 31Dec): RM11.897 mil (Eps: 0.00048),PAT: 1.57%
*EPS calculate using 386,000,000 shares

Operating cashflow vs PBT
2022: 37.99%
2021: 108%
2020: -ve
2019: -ve

Trade Receivable vs Revenue
2022: 4.33%
2021: 0.067%
2020: 16.69%
2019: 6.5%

Major customer (FYE2022)
1.Southeast Edible Bird Nest Capital (Xiamen) Industrial Development Co., Ltd: 64.37%
2.Southeast Edible Bird Nest Capital Biotechnology Co., Ltd: 14.01%
3.Jipintang Health Industry Co., Ltd.: 10.97%
4.Yue Xiang (Zhejiang) Food Co., Ltd: 5.87%
5.China-Malaysia Jinguyan (Guangxi)Biotechnology Co., Ltd.: 2.07%
***total 97.29%

Major Sharesholders
1.Lavernt Chen: 33.58% (direct)
2.Lee Wei Kong: 11.19% (direct)
3.Liw Chong Liong: 11.19% (direct)
4.MLCL Construction: 11.19% (direct)
5.Gentle Rainbow: 7.46% (direct)

Directors & Key Management Remuneration for FYE2023 
(from Revenue & other income FYE2023 revenue forecast)
Total director remuneration: RM0.718 mil
key management remuneration: RM50k – RM0.25 mil
total (max): RM0.968 mil or 9.72%

Use of funds 
1.Purchase of the New Facility to expand processing capacity: 13.63%
2.Renovation and fit out works of the New Facility: 15.55%
3.Setting-up of three (3) bird’s nests collection centres in East Malaysia: 8.16%
4.Expansion into the processing and sale of RCEBN: 6.07%
5.Purchase of raw bird’s nests for RUCEBN: 32.07%
6.Working capital: 9.94%
7.Estimated listing expenses: 14.58%

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 unique business / industry. The business might have grow opportunities, but the industry it self might contain a lot of regulation risk & unstable income.  

*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.

KGW GROUP 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: 30 June 2023
Close to apply: 18 Jul 2023
Balloting: 21 July 2023
Listing date: 01 Aug 2023

Share Capital
Market cap: RM101.388 mil
Total Shares: 482,798,567 shares

Industry CARG
Growth Forecast of the Logistics Industry in Malaysia: 7.1% (forecast 2023-2027)
Industry competitors comparison (net profit%)
1.KGW Group: 7.1% (PE19.44)
2.FM Global: 4.3% (PE6.74)
3.Harbour-Link: 19.8%  (PE:2.48)
4.Infinity Logistics: 10.1%
5.See Hup: Losses
6.Transocean: 6.1% (PE83.33)
7.Forward Freight services S/B : 2.5%
8.Tri-Mode: 8.4% (PE11.51)
9.Worldgate Global: -9.7%
10.Dimerco Express: 3.4%
11.Interway Transport S/B: -3.3% 

Business (FYE 2022)
1.Logistics services
- ocean freight services, air freight services and freight forwarding services
2.Warehousing and distribution of healthcare-related products and devices
Revenue by Geo
1.Malaysia: 4.12%
2.North America: 71.84%
3.Others: 24.04%

Fundamental
1.Market: Ace Market
2.Price: RM0.21
3.Forecast P/E: PE19.44 (forecast FYE2023 EPS 0.0108)
4.ROE(Pro Forma III): nil%
5.ROE:  57.46%(FPE2022), 133.58%(FYE2021), 59.88%(FYE2020), 23.94%(FYE2019)
6.Net asset: RM0.12
7.Total debt to current asset: 0.8658 (Debt: 31.815mil, Non-Current Asset: 23.499mil, Current asset: 36.746mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE Q1): RM18.041 mil (Eps: 0.0027), PAT: 7.10%
2022 (FYE 31Dec): RM229.695 (Eps: 0.0338), PAT: 7.11%
2021 (FYE 31Dec): RM195.419 mil (Eps: 0.0326),PAT: 8.06%
2020 (FYE 31Dec): RM63.525 mil (Eps: 0.0045),PAT: 3.43%
2019 (FYE 31Dec): RM43.379 mil (Eps: 0.0007),PAT: 0.80%

Operating cashflow vs PBT
2022: 82.20%
2021: 97.93%
2020: 7.89%
2019: 158.88%

Trade Receivable vs Revenue
2022: 3.5%
2021: 10.65%
2020: 12.82%
2019: 11.90%

Major customer (FYE2022)
1.Rierden Chemical & Trading Company: 12.10%
2.PMB Silicon Sdn Bhd: 10.07%
3.Camel Energy Inc: 5.93%
4.CNC Cabinetry Inc: 4.33%
5.Interstate Batteries: 3.27%
***total 35.70%

Major Sharesholders
1.Dato’ Roger Wong: 61.05%
2.Cheok Hui Yen: 6.98%
3.Chow Enn Jie: 3.96%

Directors & Key Management Remuneration for FYE2023
(from Revenue & other income FYE2023 revenue forecast)
Total director remuneration: RM1.465 mil
key management remuneration: RM0.65 mil – RM0.80 mil
total (max): RM2.265 mil or 14.64%

Use of funds
1.Renovation of the Target Property: 11.95%
2.Repayment of bank borrowing: 59.78%
3.Working capital: 4.36%
4.Estimated listing expenses: 23.91%

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 after they release quarter result Q1 2023 effected the company rating.

*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.