EVERGREEN MAX CASH CAPITAL 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: 29 August 2023
Close to apply: 12 September 2023
Balloting: 15 September 2023
Listing date: 26 September 2023

Share Capital
Market cap: RM267.5766 mil
Total Shares: 1.1149 bil shares

Industry CARG
Pawnbroking industry size in Malaysia CAGR (2017-2022): 5.2%
Industry competitors comparison (net profit%)
1. EMCC group: 30.56% (PE13.3)
2. PPjack: 14.46% (PE49)
3. Others (Sdn Bhd): -5.8% to 56.36%

Business (FYE 2023)
1. Pawnbroking services (Revenue: 30.3%)
- Monthly interest based on pawn loan.
- Administrative fee
2. Gold and luxury product retail and trading (Revenue: 69.2%)
- One-off sales.
3. Pawnbroking consultancy and IT solutions. (Revenue: 0.5%)
- Monthly consultation fee.
- Monthly IT solutions fee. 

Fundamental
1.Market: Ace Market
2.Price: RM0.24
3.Forecast P/E: 13.3 (FYE2022, EPS RM0.018)
4.ROE(FPE2023):  11.12%
5.ROE: 5.1%(FPE2022), 11.06%(FYE2021), 8.3%(FYE2020),1.17%(FYE2019)
6.Net asset: RM0.17
7.Total debt to current asset: 0.394  (Debt: 69.246mil, Non-Current Asset: 26.428mil, Current asset: 175.866mil)
8.Dividend policy: 20% PAT dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 30 Apr, 4mth): RM35.956 (Eps: 0.004), PAT: 13.7%
2022 (FYE 31Dec): RM67.173 mil (Eps: 0.0180), PAT: 29.8%
2021 (FYE 31Dec): RM60.903 mil (Eps: 0.0110),PAT: 19.6%
2020 (FYE 31Dec): RM24.426 mil (Eps: 0.0060),PAT: 25.9%
2019 (FYE 31Dec): RM14.802 mil (Eps: 0.0010),PAT: 5.4%

Major customer (2023)
1. Nexigold Jewellery Sdn Bhd: 22.6%
2. Gold Bullion Precious Metal Sdn Bhd: 33.3%
***total 55.9%

Major Sharesholders
1. Tirai Anggerik: 55.6% (direct)
2. Dato’ Low Kok Chuan : 55.6% (Indirect)
3. Datin Tea Guat Ngo : 55.6% (Indirect)
4. Low Kok Hu: 55.6% (indirect)
5. Tee Kian Heng: 3.3% (indirect)

Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2022)
Total director remuneration: RM0.969 mil
key management remuneration: RM0.50 mil – RM0.65 mil
total (max): RM1.619 mil or 6.91%

Use of funds
1. Expansion of pawnshops: 31.1%
2. Cash capital for our pawnbroking business: 46.7%
3. Repayment of bank borrowings: 6.2%
4. Working capital: 8%
5. Estimated listing expenses: 7.2%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is high risk investment, and also come with high grow return opportunities. 

*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.

MERCURY SECURITIES GROUP BERHAD

Copyright@http://lchipo.blogspot.com/
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: 28 August 2023 
Close to apply: 05 September 2023
Balloting: 08 September 2023
Listing date: 19 September 2023

Share Capital
Market cap: RM223.250 mil
Total Shares: 893 mil shares

Industry CARG
1. Total trading value (2018-2022) : -4.0%
2. Total trading volume (2018-2022): 3.2%
3. Fund raised via equity fundraising (2018-2022):  29.80%
Industry competitors comparison (net profit%)
Mercury Group: 40.7%
M & A Securities S/B: 37.0%
Inter-Pacific Securities S/B: 32.3%
UOB Kay Hian Securities (M) S/B: 27.80%
Others:  -39% to 24.6%

Business (FYE 2023)
Investment holding company and through our Subsidiaries, we are principally engaged in the stockbroking, corporate finance advisory and other related businesses as well as provision of nominee and custodian services.
Segment
1. Stockbroking Segment: 79.47%
2. Corporate Finance Segment: 20.53%
3. Related Activities

Fundamental
1.Market: Ace Market
2.Price: RM0.25
3.Forecast P/E: 16.88 (forecast, EPS 0.01481, didn’t use PE in prospectuses book)
4.ROE(Pro Forma III): 3.12%
5.ROE: 14.01%(FPE2022), 19.57%(FYE2021), 14.75%(FYE2020), 6.96%(FYE2019)
6.Net asset: RM0.182
7.Total debt to current asset: 0.099 (Debt: 15.045mil, Non-Current Asset: 25.603mil, Current asset: 151.939mil)
8.Dividend policy: No formal dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 30Apr, 6 mths): RM11.439 mil (Eps: 0.0057), PAT: 44.38%
2022 (FYE 31Oct): RM31.333 mil (Eps: 0.01822), PAT: 69.59%
2021 (FYE 31Oct): RM40.169 mil (Eps: 0.01355),PAT: 47.16%
2020 (FYE 31Oct): RM36.303 mil (Eps: 0.01366),PAT: 50.44%
2019 (FYE 31Oct): RM22.211 mil (Eps: 0.00695),PAT: 43.92%

Major customer (2023) 
1. Ace Credit (M) Sdn Bhd: 5.61%
2. Public Mutual Berhad: 4.49%
3. Individual: 3.85%
4. Evergreen Max Cash Capital Berhad: 2.89%
5. Pembinaan Azam Jaya Sdn Bhd: 2.88% 
***total 19.72%

Major Sharesholders
1. Chew Sing Guan: 37.08% (direct)
2. Enrogetz: 29.08% (direct)
3. Dato’ A. Rahman Bin Safar: 8.24% (direct)
4. Faizal Bin Mat Zuki: 29.08% (indirect)

Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2022)
Total director remuneration: RM0.465 mil
key management remuneration: RM1.35 mil – RM1.65 mil
total (max): RM2.115 mil or 9.7%

Use of funds
1. Margin financing facility services: 68.39%
2. Digitalisation programme and marketing activities: 7.33%
3. Working capital: 11.80%
4. Estimated listing expenses: 12.48%

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 profitable business model, but might not suitable for long term holding. 
 
*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.
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