AGX GROUP BERHAD

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Open to apply: 16 Jan 2024
Close to apply: 23 Jan 2024
Balloting: 26 Jan 2024
Listing date: 07 Feb 2024

Share Capital
Market cap: RM151.503 mil
Total Shares: 432.866 mil shares

Industry (CAGR 2018-2022)
Malaysia external trade activities: 11.5%
The Philippines external trade activities: 3.3%
Korea external trade activities: 3.1%
Singapore external trade activities: 6.3%
Industry competitors comparison (net profit%)
1. AGX Group: 5.8%
2. Harbour: 17.4% (PE3.7)
3. Trimode: 8.4% (PE15.85)
4. Swift: 7.6% (PE8.53)
5. Others Listed companies in Malaysia: -13.5% to 6.1%
6. Other Listed companies in the Philippines: -39.3% to -3.6%
7. Other Listed companies in Korea, Myammar, Singapore: -47.3% to 7.1%

Business (FPE 2023)
Third-party logistics service provider. 
Revenue by Segments
1. Sea freight forwarding: 36.76%
2. Air frieght forwarding: 17.11%
3. Aerospace logistics: 37.06%
4. Warehousing and other 3PL services: 5.68%
5. Road freight transportation: 3.39%
Revenue by Geographic market
1. Malysia: 16.43%
2. Philippines: 41.67%
3. Korea: 7.74%
4. Myanmar: 4.97%
5. Singapore: 10.48%
6. others: 18.71%

Fundamental
1.Market: Ace Market
2.Price: RM0.35
3.Forecast P/E: 12.68 (latest 12 month, EPS RM0.0276)
4.ROE(Pro forma III):  15.17%
5.ROE: 22.82%(FPE2023),29.87%(FYE2022), 15.14%(FYE2021), 18.53%(FYE2020),
6.Net asset: RM0.18
7.Total debt to current asset: 0.071 (Debt: 6.682mil, Non-Current Asset: 19.488mil, Current asset: 93.751mil)
8.Dividend policy:  30% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%) 
2023 (FPE 31Aug, 8mths): RM122.228 mil (Eps: 0.0172), PAT: 6.09%
2022 (FYE 31Dec): RM234.429 mil (Eps: 0.0313), PAT: 5.78%
2021 (FYE 31Dec): RM193.372 mil (Eps: 0.0137),PAT: 3.07%
2020 (FYE 31Dec): RM122.507 mil (Eps: 0.0013),PAT: 0.46%

Major customer (FPE 2023) 
1.Airasia Group: 27.37%
2.Kukdo Chemical Co.,Ltd: 7.16%
3.Autoliv Cebu Safety Manufacturing Inc: 3.49%
4.Moog Controls Corporation: 3.29%
5.Customer Group B: 2.83%
***total 44.15%

Major Sharesholders 
1. Dato’ Ponnudorai A/L Periasamy: 11.54%
2. Jayasielan A/L Gopal: 11.54%
3. Penu Mark: 17.6%
4. Neo Lip Pheng, Peter: 17.6% 
5. Maximino Baylen Gulmayo, Jr.: 4.97%

Directors & Key Management Remuneration for FYE2023 
(from Revenue & other income 2022)
Total director remuneration: RM3.413 mil
key management remuneration: RM1.5 mil – RM1.65 mil
total (max): RM5.063 mil or 10.04%

Use of funds 
1.Business expansion: 25.8%
2.Repayment of bank borrowings: 12.2%
3.Working capital: 48.7%
4.Estimated listing expenses: 13.3%

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.  

*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.

WENTEL ENGINEERING HOLDINGS 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: 15 Jan 2024
Close to apply: 22 Jan 2024
Balloting: 24 Jan 2024
Listing date: 06 Feb 2024

Share Capital

Market cap: RM299 mil

Total Shares: 1.150 bil shares

Industry (CAGR 2018-2022)

GDP of fabricated metal product industry: 1.0%

Sales value from machining, and treatment and coating of metals in Malaysia: 8.9%

GDP of machinery and equipment industry: 4.3%

Sales value of domestically manufactured machinery and equipment: 7.2%

Export value of machinery, equipment and parts: 11.7%

Industry competitors comparison (net profit%)

1. Wentel: 17.4%

2. MACE Instrumentation S/B : 13.4% (JHM: 28.09)

3. UWC: 19.8 % (PE126)

4. Dufu: 22% (PE50.45)

5. SFPtech: 37.3% (PE55.82)

6. CPETech: 20.9% (PE63.74)

6. Grand Venture Technology S/B: 19.2% (SGX: PE18.93)

7. Others: -2.8% to 14.6%

Business (FPE 2023)

Fabrication of semifinished metal products, fabrication of metal parts and assembly of finished products.

Revenue Segments

1. Fabrication of semifinished metal product: 75.56%

2. Fabrication of metal parts: 16.66%

3. Assembly of finished products: 7.78%

Revenue by Geo

1. Malaysia: 69.02%

2. Singapore: 30.48%

3. US: 0.50%

Fundamental

1.Market: Ace Market

2.Price: RM0.26

3.Forecast P/E: 18.51 (latest 12 month, EPS RM0.01405)

4.ROE(Pro forma II):  9%

5.ROE: 23.16%(FPE2022), 18.45%(FYE2021), 5.38%(FYE2020),

6.Net asset: RM0.14

7.Total debt to current asset: 0.1038  (Debt: 13.737mil, Non-Current Asset: 45.244mil, Current asset: 132.393mil)

8.Dividend policy: doesn’t have any formal dividend policy.

9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%) 

2023 (FPE 30Sep, 9mths): RM72.129 mil (Eps: 0.0096), PAT: 15.25%

2022 (FYE 31Dec): RM117.540 mil (Eps: 0.0178), PAT: 17.42%

2021 (FYE 31Dec): RM89.854 mil (Eps: 0.0119),PAT: 15.25%

2020 (FYE 31Dec): RM64.759 mil (Eps: 0.0031),PAT: 5.53%

Major customer (FPE 2023) 

1. Rapiscan Group: 34.79%

2. Customer E Group: 31.36%

3. Makino Asia Pte Ltd: 17.25%

4. Customer D Group: 5.87%

5. Customer B Group: 4.57%

***total 92.84%

Major Sharesholders 

1. Wong Kim Fatt: 37.07% (direct)

2. Ban Kim Wah: 13.25% (direct)

3. Loo Sok Ching: 0.6% (direct)

4. WCSB: 16.56% (indirect)

5. Tai Yuan Heng: 4.77% (direct)

Directors & Key Management Remuneration for FYE2023 

(from Revenue & other income 2022)

Total director remuneration: RM0.952 mil

key management remuneration: RM1.054 mil – RM1.25 mil

total (max): RM2.202 mil or 7.06%

Use of funds 

1.Part finance the construction of 2 blocks factory & 2 blocks workers’ hostel: 56.31%  

2.Part finance the purchase of new machinery and equipment: 35.24%

3.Estimated listing expenses: 8.45%

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.

HE 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: 12 JAN 2024
Close to apply: 18 JAN 2024
Balloting: 22 JAN 2024
Listing date: 30 JAN 2024

Share Capital
Market cap: RM123.2 mil
Total Shares: 440 mil shares

Industry CARG
Value of Construction Work Completed for Non-Residential Buildings: -2.5%
Value of Construction Work Completed for Electrical Installation: 14.2%
Number of Applications for New Electrical Installations: 4.3%
Number of Applications for Existing Electrical Installations: 3.8%
Competitors comparison (PAT%)
1. HE Group: 5.7% (PE12.9)
2. LWE Engineering S/B: 10.6%
3. Hong Hin Electrical S/B: 
4. CBH Engineering S/B: 8.8%
5. PESTECH S/B: 4.1%
6. Kinergy Advancement Bhd: 1.5% (PE30.18)
7. Others: -0.4% to 7.2%

Business (FPE 2023)
Provision of power distribution system, other building systems and works, hook-up and retrofitting of electrical equipment and trading.
Revenue Segment
1. Power distribution: 66.54%
2. Other building system and works: 28.49%
3. Electrical equipment hook-up and retrofitting: 4.81%
4. Trading of electrical product: 0.16%

Fundamental
1.Market: Ace Market
2.Price: RM0.28
3.Forecast P/E: 12.90 (estimated latest 12 month, EPS RM0.0217)
4.ROE(Proforma III): 16.61%
5.ROE: 38.8%(FPE2022), 32.5%(FYE2021), 18.69%(FYE2020).
6.Net asset: RM0.10
7.Total debt to current asset: 0.732 (Debt: 87.464 mil, Non-Current Asset: 6.867mil, Current asset: 119.471mil)
8.Dividend policy: didn't have formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 31Aug, 8mth): RM138.577 mil (Eps: 0.0165), PAT: 5.24%
2022 (FYE 31Dec): RM107.573 mil (Eps: 0.0140), PAT: 5.73%
2021 (FYE 31Dec): RM100.461 mil (Eps: 0.0094), PAT: 4.12%
2020 (FYE 31Dec): RM31.388 mil (Eps: 0.0039), PAT: 5.41%

Order Book 
FYE2023: 22.993mil 
FYE2024: 188.916mil
Trade receivable vs revenue
2020: 33.3%
2021: 37.73%
2022: 39.6%
2023: 45.76%

Major customer (2023)
1. Customer A: 42.11%
2. Zalam Corporation Sdn Bhd: 31.95%
3. Customer C: 9.25%
4. Exyte Malaysia Sdn Bhd: 6.45%
5. Xeonics Co., Ltd: 4.59%
***total 94.35%

Major Sharesholders
1. Haw Chee Seng: 20.42% (direct)
2. Eng Choon Leong: 14.8% (direct)
3. Hexatech Energy Consolidated Sdn Bhd: 24.6% (direct)
4. Yong Chong Cheang: 24.6% (indirect)

Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2022)
Total director remuneration: RM0.884 mil
key management remuneration: RM0.85mil – RM1.1mil
total (max): RM1.984 mil or 13.22 %

Use of funds
1. Business expansion: 15%
2. Capital expenditure: 7.19%
3. Working capital: 62.19%
4.Estimated listing expenses: 15.62%

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

Overall is reasonable price and but risk level is a bit high. 

*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.

KJTS 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: 05 Jan 2024

Close to apply: 11 Jan 2024

Balloting: 16 Jan 2024

Listing date: 26 Jan 2024

Share Capital

Market cap: nil (will need refer final institutional price)

Total Shares: 688 mil shares

Industry CARG (2018-22)

Value of Construction Work Completed for Electrical Installation in Malaysia: 14.2%

Value of Construction Work Completed for Plumbing, Heat and Air-conditioning Installation in Malaysia: 17.3%

Operating Revenue of Cleaning Activities in Singapore (2017-21): 0.2% 

Industry competitors comparison (PAT%)

KJTS Group: 7.6% (PE26)

UEM Edgenta Bhd: 1.8% (PE16.79)

GFM Services Bhd: 13.0% (PE8.65)

Widad Group Bhd: -3.8% (Losses)

Gas District Cooling (M) S/B: 15.3%

Others: -12.3% to 6.4%

Business (FPE 2023)  

Providing building support services comprising cooling energy, cleaning and FM services

Revenue by Segments

1. Cooling energy: 50.21%

2. Cleaning services: 39.12%

3. Facilities management: 10.67%

Fundamental

1.Market: Ace Market

2.Price: RM0.27 (will follow final institutional price)

3.Forecast P/E: 26.04 (forecast FPE2023, EPS RM0.01037)

4.ROE(Pro Forma III): 6.56%

5.ROE: 14.08%(FPE2023), 19.84%(FYE2022), 20.84%(FYE2021), 24.07%(FYE2020)

6.Net asset: 0.14

7.Total debt to current asset: 0.319 (Debt: 38.497mil, Non-Current Asset: 16.978mil, Current asset: 120.805mil)

8.Dividend policy: 20% PAT dividend policy.

9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)

2023 (FPE 30 July, 7mths): RM71.767 (Eps: 0.0062),PAT: 5.29%

2022 (FYE 31 Dec): RM94.438 mil (Eps: 0.0100),PAT: 7.58% 

2021 (FYE 31 Dec): RM85.285 mil (Eps: 0.0086),PAT: 7.01%

2020 (FYE 31 Dec): RM73.757 mil (Eps: 0.0078),PAT: 7.17%

Major customer (FPE 2023)

1. Bank Pembangunan Malaysia Berhad: 13.81%

2. Customer C: 10.36%

3. Micron Semiconductor (M) Sdn Bhd: 10.34%

4. Customer group A: 6.82%

5. Customer D: 4.69%

***total 46.02%

Major Sharesholders

1. Lee Kok Choon: 31.35%

2. Sheldon Wee Tah Poh: 31.35%

3. Yeow Boon Siang: 4.81%

Directors & Key Management Remuneration for FYE2023

(from Revenue & other income 2022)

Total director remuneration: RM1.874mil

key management remuneration: RM0.95mil – RM1.150mil

total (max): RM3.024 mil or 13.3%

Use of funds

1. Expansion of cooling energy segment: 68.66%

2. Expansion of offices in Malaysia, Thailand and Singapore: 7.64%

3. Working capital: 13.79%

4. Defraying the listing expenses: 9.91%

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

Overall is a low PAT% 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.