IPO

Wednesday, January 17, 2024

AGX 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: 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.