KAWAN RENERGY BERHAD

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opinion and reader should take their own risk in investment decision.

Open to apply: 24 Apr 2024 
Close to apply: 14 May 2024
Balloting: 17 May 2024
Listing date: 29 May 2024

Share Capital 
Market cap: RM165 mil
Total Shares: 550 mil shares
First day listing tradable shares: 155.5mil shares

Industry CARG
Industrial process equipment industry size (Malaysia), 2020 – 2023: 14.63%
Oleochemical industry size (Malaysia), 2020 – 2023: 13.98%
Electricity generation and consumption (Malaysia), 2020 – 2023: 4.09%
Oil and gas industry size (Malaysia), 2020 – 2023(p): 1.48%
Food and beverage manufacturing industry size (Malaysia), 2020 – 2023: .7.07%
Industry competitors comparison (net profit%)
1.Kawan Group: 13.50% 
2.Ngeam Engineering Works Sdn. Bhd. : 13.71%
3.Amalgamated Metal Corporation (M) Sdn. Bhd: 11.33%
4.Yuen Fee (Wan Soon) Engineering Sdn. Bhd.: 13.09%
5.Wasco Process Engineering Sdn Bhd: 8.1% (PE10.4)
6.Others: 0.33% to 3.19%

Business (FYE 2023) 
Engineering solutions provider (Design, fabrication, installation and/or commissioning solutions)
1. Industrial process equipment: 49.2%
2. Process plants: 28.2%
3. Renewable energy and co-generation plants: 22.4%
4. Others: 0.2%

Fundamental 
1.Market: Ace Market
2.Price: RM0.30
3.Forecast P/E: 12.4
4.ROE(Proformal IV):  18.03%
5.ROE:24.89%(FYE2023) , 31.52%(FYE2022), 17.69%(FYE2021), 12.63%(FYE2020)
6.Net asset: 0.13
7.Total debt to current asset: 0.767  (Debt: 48.358mil, Non-Current Asset: 22.344mil, Current asset: 99.809mil)
8.Dividend policy: doesn’t have formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%) 
2023 (FYE 31Oct): RM98.379 mil (Eps: 0.0240), PAT: 13.5%
2022 (FYE 31Oct): RM139.184 mil (Eps: 0.0260), PAT: 10.2%
2021 (FYE 31Oct): RM64.041 mil (Eps: 0.0130), PAT: 10.7%
2020 (FYE 31Oct): RM48.823 mil (Eps: 0.008), PAT: 9.1%

Major customer (2023) 
1.Ramatex Textiles Industrial Sdn Bhd: 16.3%
2.Oiltek Sdn Berhad: 14.4%
3.Oleon Group: 13.9%
4.Munzing Malaysia Sdn Bhd: 11.7%
5.Eyvap Sabun Malaysia Sdn Bhd: 4.4%
***total 60.7%

Major Sharesholders 
1.Lim Thou Lai: 70.5%
2.Chong Hon Choong: 1.2%
3.Heng Siew Aun: 2.0%
Directors & Key Management Remuneration for FYE2024 
(from Revenue & other income 2023)
Total director remuneration: RM0.748 mil
key management remuneration: RM0.35 mil – RM0.55 mil
total (max): RM1.298 mil or 5.41%

Use of funds 
1.Working capital: 45.5%
2.Investment into a new 2MW power plant: 15.1%
3.Improvement of Bercham Plant output: 7.6%
4.Purchase of additional machinery: 1.5%
5.Repayment of bank borrowings: 18.2%
6.Estimated listing expenses: 12.1%

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

FARM PRICE 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: 24 Apr 2024 

Close to apply: 30 Apr 2024

Balloting: 03 May 2024

Listing date: 14 May 2024

Share Capital 

Market cap: RM108 mil

Total Shares: 450 mil shares

Industry CARG 

Malaysia’s consumption of fresh vegetables 2018-2022: 12.5%

Malaysia’s monthly household expenditure of vegetables 2016-2022: 1.2% 

Singapore’s supply of fresh vegetables 2018-2022: -4.7% 

Industry competitors comparison (net profit%)

1. Farm Price: 7.6%

2. Lian Hoe Huat Enterprise (M) S/B: 5.4%

3. Keongco Malaysia S/B: 4.2%

4. YFC Trading (M) S/B: 2.2%

5. Others: 0.5% to 1.7%

Business (FYE 2023) 

Wholesales distribution of fresh vegetable and F&B products, groceries, retailing. 

Business revenue by segment

1. Fresh vegetables: 77.61%

2. F&B product and other groceries: 16.01%

3. Retailling Segment: 6.38%

Revenue by Geo

1. Malaysia: 74.54%

2. Singapore: 25.46%

Fundamental  

1.Market: Ace Market

2.Price: RM0.24

3.Forecast P/E: 12.44

4.ROE(Pro forma III):  18.47

5.ROE: 29.86%(FPE2022), 28.04%(FYE2021), 35.83%(FYE2020)

6.Net asset: 0.14

7.Total debt to current asset: 0.524 (Debt: 23.763mil, Non-Current Asset: 25.544mil, Current asset: 45.344mil)

8.Dividend policy: doesn’ have formal dividend policy.

9. Shariah status: Yes

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

2024 (FYE 31Dec): RM114.199 mil (Eps: 0.0193), PAT: 7.62%

2022 (FYE 31Dec): RM94.376 mil (Eps: 0.0106), PAT: 5.03%

2021 (FYE 31Dec): RM81.966 mil (Eps: 0.0069), PAT: 3.80%

2020 (FYE 31Dec): RM73.540 mil (Eps: 0.0064), PAT: 3.89%

Major customer (2023) 

1.TF vegetable: 5.42%

2.LTE Vegetable: 4.03%

3.Compass: 3.94%

4.Farm direct 4u (S) Pte Ltd: 3.79%

5.Nyuk Sheng Plantation Sdn Bhd: 2.86%

***total 20.04%

Major Sharesholders 

1.Dr. Tiong Lee Chian: 62.58% (indirect)

2.Liew Tsuey Er: 67.42% (indirect)

3.TLC Consolidation: 60% (direct)

Directors & Key Management Remuneration for FYE2023  

(from Revenue & other income 2022)

Total director remuneration: RM1.034 mil

key management remuneration: RM0.30 mil – RM0.50 mil

total (max): RM1.534 mil or 6.65%

Use of funds 

1.Construction of new facilities on Lot 55359: 26.41%

2.Purchase of machinery, equipment and logistics fleet: 8.17%

3.Planned regional distribution and procurement centre: 6.54%

4.Working capital: 43.22%

5.Estimated listing expenses: 15.93%

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

Overall is low PAT% business. The weakness of this type of business is, with a small increase of cost will cause the company QR to report losses, hence will effect shares price heavily.  

*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.

SIN-KUNG LOGISTICS 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: 18 Apr 2024 
Close to apply: 02 May 2024
Balloting: 06 May 2024
Listing date: 15 May 2024

Share Capital 
Market cap: RM156 mil
Total Shares: 1.2 bil shares

Industry CARG
(***based on manual calculated CARG in percentage, actual figure might differ)
Total air cargo handled (Malaysia), 2018 – 2023: -0.6264%
Total container throughput (Malaysia), 2018 – 2023: 3.084%
External trade (Malaysia), 2018 – 2023: 7.026%
GDP from manufacturing sector (Malaysia), 2018 – 2023: 3.7643%
Industry competitors comparison (net profit%)
1. Sin-Kung Group: 12.33%
2. MasKargo Logistics Sdn Bhd: 8.5%
3. Transocean Holdings Bhd: 6.09%  (PE254.48)
4. Harbour-Link Group Bhd: 17.39% (PE3.78)
5. Tri-Mode System (M) Berhad: 8.4% (PE15.43)
6. Swift Haulage Berhad: 7.65% (PE9.28)
7. Others: -13.28% to 5.78% 

Business (FYE 2023) 
Integrated logistics service provider principally involved in the provision of trucking services with a focus on airport-to-airport road feeder services. 
Revenue by segments
1. Trucking services (airport-to-airport road feeder services): 52%
2. Trucking services (Point-to-trucking services): 20.3%
3. Container haulage services: 9.5%
4. Warehousing and distribution services: 15.7%
5. Other logistic-related services: 2.5%
Revenue by Goe
1. Malaysia: 54.1%
2. Singapore: 27.3%
3. Others countries: 18.6%

Fundamental 
1.Market: Ace Market
2.Price: RM0.13
3.Forecast P/E: 26 (FYE2023, EPS RM0.005)
4.ROE(Pro forma III): 7.64%
5.ROE: 22.91%(FPE2022), 34.64%(FYE2021), 33.87%(FYE2020)
6.Net asset: 0.01
7.Total debt to current asset: 4.298 (Debt: 126.525mil, Non-Current Asset: 180.905mil, Current asset: 29.435mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%) 
2023 (FYE 31Dec): RM51.984 mil (Eps: 0.0050), PAT: 12.3%
2022 (FYE 31Dec): RM56.743 mil (Eps: 0.0100), PAT: 21.8%
2021 (FYE 31Dec): RM52.256 mil (Eps: 0.0120),PAT: 27.8%
2020 (FYE 31Dec): RM43.071 mil (Eps: 0.0080),PAT: 21.8%

Major customer (2023) 
1. Customer A: 16.9%
2. Customer C: 12.7%
3. Customer F: 9.8%
4. Customer D: 5.8%
5. Customer G: 5.8%
***total 51.0%

Major Sharesholders 
1. Lille Management: 29.8% (direct)
2. Alan Ong Lay Wooi: 29.8% (direct)
3. Angelina Ong Lay Shee: 14.9% (direct)
4. Adeline Ong Lay Suen: 29.8% (indirect)
5. Ameline Ong Lay Ling: 29.8% (indirect)
6. Alex Ong Lay Ming: 29.8% (indirect)

Directors & Key Management Remuneration for FYE2024 
(from Revenue & other income 2023)
Total director remuneration: RM2.061 mil
key management remuneration: RM0.90 mil – RM1.10 mil
total (max): RM3.161 mil or 13.15%

Use of funds 
1. Expansion of warehouse & distribution services: 38.6%
2. Repayment of bank borrowings: 37%
3. Purchase of commercial vehicles: 7.7%
4. Working capital: 4.0%
5. Estimated listing expenses: 12.7%

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.