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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.