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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.
opinion and reader should take their own risk in investment decision.
Close to apply: 17 Jan 2024
Balloting: 19 Jan 2024
Listing date: 02 Feb 2024
Listing date: 02 Feb 2024
Share Capital
Market cap: RM170.115 mil
Total Shares: 309.3 mil shares
Market cap: RM170.115 mil
Total Shares: 309.3 mil shares
Industry CARG
Import value of rolled products (2018-22): 0.4%
Import volume of rolled products (2018-21): -8.1%
Export value of rolled products (2018-22): -1.1%
Export volume of rolled products (2018-21): -10.0%
Industry competitors comparison (net profit%)
TSA Group: 11.4%
Pantech: 14.3% (PE6.83%)
Prestar Precision Tube: losses
KSSC: 0.9%
Hanwa Steel Centre: losses
Kanzen Tetsu:2.8%
Sin Lian Tat Hardware S/B: 3.9%
Supreme Steelmakers: 10.3%
Taik Bee Hardware: 3%
Hoto Stainless Steel: losses
Business (FPE 2023)
Distribution and supply of ferrous and non-ferrous metal and other industrial hardware products, and manufacturing and processing of stainless steel pipes and other metal products.
Business Segments
1. Trading: 62.7%
2. Manufacturing: 30.0%
3. Processing: 7.3%
Fundamental
1.Market: Ace Market
2.Price: RM0.55
3.Forecast P/E: 18.15 (FPE2023, forecast EPS RM0.03)
4.ROE(FPE2023): 11.94%
5.ROE: 27.08%(FPE2022), 31.29%(FYE2021), 4.16%(FYE2020)
6.Net asset: RM0.02
7.Total debt to current asset: 0.476 (Debt: 96.646mil, Non-Current Asset: 57.583mil, Current asset: 212.783mil)
8.Dividend policy: didn’t have any formal dividend policy.
9. Shariah status: -
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 31Aug): RM220.339 mil (Eps: 0.0202), PAT: 4.8%
2022 (FYE 31Dec): RM357.271 mil (Eps: 0.0797), PAT: 11.4%
2021 (FYE 31Dec): RM302.693 mil (Eps: 0.0789),PAT: 13.3%
2020 (FYE 31Dec): RM234.628 mil (Eps: 0.0098),PAT: 2.2%
Major customer (FPE2023)
1.Customer G: 3.2%
2.Customer F: 1.5%
3.Customer B: 1.2%
4.Customer H: 1.1%
5.Kamaphuli Shoe Ind. Ltd: 0.9%
***total 7.9%
Major Sharesholders
1.Barisan Jutawan: 8.9% (Direct)
2.KVC Properties: 37.6% (Direct)
3.Chen Khai Voon : 37.6% (indirect)
4.Chew Kuan FahL 18.8% (Direct)
5.Chew Yik Wai: 6.0% (Direct)
6.Ng Kim Liang: 3.7% (Direct)
Directors & Key Management Remuneration for FYE2023
(from Revenue & other income FPE2023)
Total director remuneration: RM2.2326 mil
key management remuneration: RM0.90 mil – RM1.15 mil
Total (max): RM3.3826 mil or 4.24%
Use of funds
1.Capital expenditure (Semenyih Manufacturing Premises): 12%
2.Working capital: 29%
3.Repayment of bank borrowings: 47%
4.Estimated listing expenses: 12%
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.
Overall is high risk investment.
*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.