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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: 01 March 2024
Close to apply: 08 March 2024
Balloting: 12 March 2024
Listing date: 22 March 2024
Share Capital
Market cap: RM1,5552 bil
Total Shares: 4.860 bil shares
Industry CARG
Number of ART Cycles in Singapore 2015-2019: 5.2%
Total Fertility Rate in Malaysia 2011-2022: -3.1%
Number of Live Births in Malaysia 2017-2022: -4.2%
Total Fertility Rate in Singapore 2012-2022: -2.1%
Number of Live Births in Singapore 2018-2022: -2.0%
Industry competitors comparison (net profit%)
1.Alpha Group: 39.9%
2.KL Fertility & Gynaecology Centre S/B: 26%
3.Ecofiesta S/B: 25%
4.Metro Healthcare Berhad: 12.5%
5.Others: -317.4% to 30.2%
Business (FYE 2023)
Fertility care specialist focusing on the provision of assisted reproductive services.
Revenue by Geo
1.Selangor centre: 52.25%
2.Penang Centre: 27.5%
3.Singapore: 20.25%
Fundamental
1.Market: Ace Market
2.Price: RM0.32
3.Forecast P/E: 29.2
4.ROE(Pro Forma III): 35.46%
5.ROE: 100.43%(FPE2023), 38.98%(FPE2022), 4.75%(FYE2021), 12.19%(FYE2020)
6.Net asset: 0.0314
7.Total debt to current asset: 0.2465 (Debt: 39.656 mil, Non-Current Asset: 33.304mil, Current asset: 160.850mil)
8.Dividend policy: 60% PAT dividend policy.
9. Shariah status: -
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE Oct, 5 mths): RM65.904 mil (Eps: 0.0044), PAT: 32.18%
2023 (FYE,31May): RM99.562 mil (Eps: 0.0011), PAT: 39.85%
2022 (FYE 31May): RM91.094 mil (Eps: 0.0047), PAT: 25.23%
2021 (FYE 31May): RM62.063 mil (Eps: 0.0005),PAT: 3.71%
2020 (FYE 31May): RM68.955 mil (Eps: 0.0007),PAT: 5.02%
***EPS above using 4.860bil shares as diluted EPS.
***EPS in prospecture draft doesn’t use 4.860bil shares to calculate diluted EPS
Major customer
Business does not have single major customer.
Major Sharesholders
1.Dato’ Dr. Lee Soon Soo, Colin: 34.01% (direct)
2.Lee Soon Ai: 8.91% (direct)
3.Dr. Ng Peng Wah: 8.32% (direct)
4.ACE Specialists: 9.15% (direct)
5.Dr.Leong Wai Yew : 6.58% (direct)
Directors & Key Management Remuneration for FYE2024
(from Revenue & other income forecast FPE2023 GP)
Total director remuneration: RM8.2115 mil
key management remuneration: RM1.35 mil – RM1.6 mil
total (max): RM9.8115 mil or 12.80%
Use of funds
1.Establishing new medical centres, satellite clinics and sales representative offices: 62.41%
2.Expansion and upgrade of existing medical centres, facilities and corporate office: 13.46%
3.Research and development: 1.89%
4.General working capital: 14.89%
5.General corporate purposes: 2.23%
6.Estimated listing expenses: 5.32%
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 good IPO & good business. But price offer at PE29.2 is not in discount.
*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.