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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: 24 Oct 2023
Close to apply: 31 Oct 2023
Balloting: 02 Nov 2023
Listing date: 15 Nov 2023
Share Capital
Market cap: RM212.121 mil
Total Shares: 606.0606 mil shares
Industry CARG
Local Contractors in the Malaysian Construction Industry as at 26 December 2023 (G7 grade): 9.516
Industry competitors comparison (net profit%)
Plytec: 8.69%
Peri Formwork Malaysia Sdn Bhd: 13.07%
BIMTECH Solutions Sdn Bhd: 14.21%
Doka Formwork Malaysia Sdn Bhd: 12.09%
Engtex Sdn Berhad: 6.97%
Others: -63.80% to 9.73%
Business (FPE 2023)
Construction engineering solutions and services as well as trading and distribution of building materials.
Business Segment
CME solution: 33.78%
Trading and distribution of building materials: 59.96%
DDE Solution: 4.54%
PC solution: 1.72%
Fundamental
1.Market: Ace Market
2.Price: RM0.35
3.P/E: RM15.49
4.ROE(FPE2023): 5.48%
5.ROE: 16.38%(FYE2022), 14.97%(FYE2021), 11.66%(FYE2020), 14.56%(FYE2019)
6.Net asset: RM0.15
7.Total debt to current asset: 0.890 (Debt: 105.318mil, Non-Current Asset: 106.837mil, Current asset: 118.304mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: -
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 31May, 5mth): RM62.581 mil (Eps: 0.0046), PAT: 4.54%
2022 (FYE 31Dec): RM158.091 mil (Eps: 0.0226), PAT: 8.69%
2021 (FYE 31Dec): RM112.712 mil (Eps: 0.0178), PAT: 9.62%
2020 (FYE 31Dec): RM113.792 mil (Eps: 0.0181), PAT: 6.30%
2019 (FYE 31Dec): RM190.111 mil (Eps: 0.0131), PAT: 4.16%
Major customer (FPE2023)
1.Siab Group of companies: 14.33%
2.Orangebeam Construction Sdn. Bhd: 9.10%
3.Eng Han Enginnering Sdn Bhd: 8.19%
4.Nestcon Builders Sdn Bhd.: 6.46%
5.Alphazen Contract Sdn Bhd: 4.02%
***total 42.10%
Major Sharesholders
1.Resilient Capital Holdings: 41.37% (direct)
2.Prestij Usaha: 32.63% (direct)
3.Yang Kian Lock: 74% (Indirect)
Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2022)
Total director remuneration: RM2.321 mil
key management remuneration: RM2.205 mil – RM2.250 mil
total (max): RM4.481 mil or 10.59%
Use of funds
1.Capital expenditure: 21.55%
2.Repayment of borrowings: 24.24%
3.Construction of factories and centralised labour quarters on the Olak Lempit Land: 21.01%
4.Purchase of software systems and hardware: 5.39%
5.Working capital: 17.03%
6.Estimated listing expenses: 10.78%
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 industry in current situation.
*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.