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