Initial Public Offering (IPO): May 2024

Thursday, May 30, 2024

AGRICORE CS HOLDINGS BERHAD

***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: 30 May 2024

Close to apply: 07 Jun 2024

Balloting: 11 Jun 2024

Listing date: 21 June 2024

Share Capital

Market cap: RM101.4 mil

Total Shares: 202.8 mil shares

First day tradable shares: 53.0738 mil shares

Industry CARG

Food ingredients industry size (Malaysia), 2020-2023: 12.48%

Pulses and legumes industry size (Malaysia), 2020-2023: 12.74%

Flour and starches industry size (Malaysia), 2020- 2023: 12.39%

Food additives industry size (Malaysia), 2020-2022: 24.78%

Industry competitors comparison (net profit%)

1. Agricore CS Group: 5.02%

2. Sin Yong Huat Enterprise Sdn Bhd: 7.59%

3. Resource Food Supplies (M) Sdn Bhd: 5.64%

4. Prima Inter-chem Sdn Bhd: 5.33%

5. Others: -23.05% to 4.18%

Business (FYE 2023)

Sourcing, distribution and production of food ingredients.

Revenue by segments

Sourcing and distribution of plantbased agricultural products: 88.8%

Production of food additives and fried shallots: 11.2%

Revenue by Geo

1. Malaysia: 98.4%

2. Others: 1.6%

Fundamental

1.Market: Ace Market

2.Price: RM0.50

3.Forecast P/E: 15.15 (FYE2023, EPS RM0.033)

4.ROE(FPE2023): 12.97%

5.ROE: 22.51%(FYE2023), 28.73%(FPE2022), 32.05%(FYE2021), 44.60%(FYE2020)

6.Net asset: 0.24

7.Total debt to current asset: 0.8214 (Debt: 44.087mil, Non-Current Asset: 15.191mil, Current asset: 53.672mil)

8.Dividend policy: no formal dividend policy.

9. Shariah status: Yes

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

2023 (FYE 31Dec): RM134.992 mil (Eps: 0.0330), PAT: 5.0%

2022 (FYE 31Dec): RM122.685 mil (Eps: 0.0350), PAT: 5.8%

2021 (FYE 31Dec): RM100.832 mil (Eps: 0.0210), PAT: 4.2%

2020 (FYE 31Dec): RM88.995 mil (Eps: 0.0150), PAT: 3.4%

Major customer (FYE 2023)

1. Kim Wang Food Industry Sdn Bhd: 5.9%

2. Sin Chuan Bean Sprout Sdn Bhd: 3.2%

3. Mr Tauge (M) Sdn Bhd: 2.5%

4. Enda Food Industries Malaysia: 1.8%

5. C.S.K Trading Malaysia company: 1.6%

***total 15.0%

Major Sharesholders

1. Frazel: 33% (direct)

2. Datuk Keh Chuan Seng: 33% (indirect)

3. Datin Cheong Kai Meng: 33% (indirect)

4. Oon Boon Khong: 29.8% (direct)

5. Aromi : 6.7% (direct)

6. Wong Pak Zen: 6.7% (indirect)

Directors & Key Management Remuneration for FYE2024

(from Revenue & other income 2023)

Total director remuneration: RM0.912 mil

key management remuneration: RM0.75 mil – RM0.95 mil

total (max): RM1.862 mil or 9.67%

Use of funds

1. Setup of a regional storage facility: 10.3%

2. Puchase of inventories: 73.2%

3. Recruitment of staff: 2.2%

4. Estimated listing expenses: 14.3%

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

Overall the food industry is growing, but their PAT% is below 10%. Is not easy to stay grow with the company, as any cost increase will effected their PAT.

*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.

Tuesday, May 28, 2024

UUE HOLDINGS BERHAD

***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: 28 May 2024

Close to apply: 18 Jun 2024

Balloting: 21 Jun 2024

Listing date: 02 Jul 2024

Share Capital

Market cap: RM145.990 mil

Total Shares: 608.292 mil shares

First day tradable shares: 162.365 mil shares

Industry CARG (2016-2023)

Capital expenditure for recurring power generation, transmission and distribution in M’sia: 9.8%

Industry competitors comparison (net profit%)

1.UUE Holdings Berhad: 15.9%

2.Komasi Engineering Sdn Bhd: 6.2%

3.Swis Resources Sdn Bhd: 8.3%

4.Jati Tinngi Holdings Sdn Bhd: 4.4%

5.MN Holdings Berhad: 5.7%

6.Pestech Sdn Bhd: 4.1%

Business (FPE 2024)

1. Underground utilities engineering solutions (specialise in the HDD method of laying pipes, and also employ the open cut and micro trenching excavation methods)

2. Manufacture and trade HDPE pipes

Revenue by segment

Underground utilities engineering solutions: 89.5%

Manufacturing and trading of HDPE pipes: 10.5%

Revenue by Geo

Malaysia : 75.3%

Singapore: 24.7%

Fundamental

1.Market: Ace Market

2.Price: RM0.24

3.Forecast P/E: 10.3

4.ROE Pro forma III: 15.68%

5.ROE: 29.10%(FYE2023), 40.73%(FYE2022), 28%(FYE2021)

6.Net asset: 0.09

7.Total debt to current asset: 0.448 (Debt: 54.989mil, Non-Current Asset: 24.141mil, Current asset: 122.748mil)

8.Dividend policy: didn’t have formal dividend policy.

9. Shariah status: Yes

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

2024 (FPE 31Dec): RM103.758 mil (Eps: 0.0240), PAT: 13.9%

2023 (FYE 28Feb): RM88.662 mil (Eps: 0.0230), PAT: 15.9%

2022 (FYE 28Feb): RM74.886 mil (Eps: 0.0240),PAT: 19.5%

2021 (FYE 28Feb): RM51.706 mil (Eps: 0.0120),PAT: 14.2%

Order Book

Malaysia : RM215.744 mil

Singapore: RM7.624 mil

Major customer (FPE2024)

1.Sutera Utama: 31.5%

2.Komasi Engineering: 26.9%

3.Wee Guan Group: 20.0%

4.Xenith IG Malaysia Sdn Bhd: 5.1%

5.Selatan Takzim Sdn Bhd: 3.8%

***total 87.3%

Major Sharesholders

1. Datuk Dr Ting Kok Hwa: 50.9%

2. Hin Wai Mun: 8.2%

3. Chong Tuoo Choi: 6.9%

4. Ting Meng Pheng: 7.3%

Directors & Key Management Remuneration for FYE2025

(from Revenue & other income FPE2024)

Total director remuneration: RM3.112 mil

key management remuneration: nil

total (max): RM3.112 mil or 11.70%

Use of funds

1.Purchase of machinery and equipment: 52.6%

2.General working capital: 36.3%

3.Estimated listing expenses: 11.1%

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

Overall is high risk investment and return opportunities forecast is middle.

Tuesday, May 21, 2024

KTI LANDMARK BERHAD

***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: 21 May 2024

Close to apply: 04 Jun 2024

Balloting: 07 Jun 2024

Listing date: 19 Jun 2024

Share Capital

Market cap: RM240 mil

Total Shares: 800 mil shares

First day tradable shares: 205mil shares

Industry CARG

Value of property transactions in Sabah, 2018 – 2023: 5.59%

Volume of property transactions in Sabah, 2018 – 2023: 3.18%

Overhang residential properties 2018 – 2023: 8.47%

Overhang shops 2018 – 2023: 8.21%

Industry competitors comparison (PBT%)

1. KTI Landmark: 14.40%

2. Hapseng: 18.71% (PE14.09)

3. SBCcorp: 1.57% (nett PE, losses))

4. WMG: losses

5. IJM land Berhad: 10.65% (PE28.58)

6. Hohup Group: losses

7. Asiapac: 6.31% (PE42.39)

8. Others: 6.59% to 21.19%

Business (FYE 2023)

Property developer, principally involved in the provision of design and build construction services and property development.

Fundamental

1.Market: Ace Market

2.Price: RM0.30

3.Forecast P/E: 17.65 (FYE2023, EPS RM0.017)

4.ROE(Pro Forma III): 8.34%

5.ROE: 10.12%(FYE2023), 7.6%(FYE2022), 12.27%(FYE2021), 11.28%(FYE2020)

6.Net asset: 0.20

7.Total debt to current asset: 0.697 (Debt: 218.920mil, Non-Current Asset: 70.527mil, Current asset: 314.200mil)

8.Dividend policy: no formal dividend policy.

9. Shariah status: -

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

2023 (FYE 31Dec): RM120.167 mil (Eps: 0.017), PAT: 11.5%

2022 (FYE 31Dec): RM112.880 mil (Eps: 0.013), PAT: 9.3%

2021 (FYE 31Dec): RM98.518 mil (Eps: 0.020), PAT: 15.9%

2020 (FYE 31Dec): RM90.193 mil (Eps: 0.016), PAT: 14.0%

Major customer (2023)

Nature of business didn’t have single large major customer.

Major Sharesholders

1. Chin Mee Leen : 60.7% (direct)

2. Loke Theen Fatt: 13.7%% (direct)

Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)

Total director remuneration: RM2.883 mil

key management remuneration: RM1.05 mil – RM1.20 mil

total (max): RM4.083 mil or 11.47%

Use of funds

1. Acquisition of land for development: 37.5%

2. Upgrading existing / expansion of our casting yard / IBS facility for our building division: 4.5%

3. Upgrading software and systems: 0.7%

4. Working capital for project development: 43.1%

5. Repayment of bank borrowings: 6.3%

6. Estimated listing expenses: 7.9%

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

Overall that is possible is an overvalued IPO.

Monday, May 6, 2024

SMART ASIA CHEMICAL 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: 02 May 2024
Close to apply: 13 May 2024
Balloting: 16 May 2024
Listing date: 28 May 2024

Share Capital
Market cap: RM147.940 mil
Total Shares: 369.850 mil shares

Industry CARG
Manufacturing sales value of paints, varnishes and similar coatings ink and mastics (Malaysia), 2018 – 2023: 19%
Exports of paints and varnishes from Malaysia to Selected Countries in SEA, 2018 – 2023: 2.78%
Value of construction work done (Malaysia), 2018 – 2023: -1.91%
Manufacturing sales value (Malaysia), 2018 – 2022: 6.56%
Industry competitors comparison (net profit%)
1. SAC: 9.67%
2. Nippon Paint group of companies: 6.55%
3. Jotun Paints (Malaysia) Sdn. Bhd. (a subsidiary of Jotun A/S): 5.74%
4. Kossan Paint group of companies: 5.63%
5. SKK group of companies: 4.14%
6. Others: -4.61% to 2.02 %

Business (FYE 2023)
Involved in the development, manufacturing, distribution and sale of decorative paints and protective coatings for household and industrial applications.
Revenue by Segment
1. Manufacturing Segment: 89.33%
2. Sale and trading Segment: 7.36%
3. Others: 3.31%

Fundamental
1.Market: Ace Market
2.Price: RM0.40
3.Forecast P/E: 16.67
4.ROE(Proforma III): 8.5%
5.ROE: 12.8% (FYE2023), 14.36%(FYE2022), 20.74%(FYE2021), 17.93%(FYE2020)
6.Net asset: RM0.12
7.Total debt to current asset: 0.596 (Debt: 44.345mil, Non-Current Asset: 73.337mil, Current asset: 74.389mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Dec): RM91.091 mil (Eps: 0.0240), PAT: 9.67%
2022 (FYE 31Dec): RM79.218 mil (Eps: 0.0234), PAT: 10.87%
2021 (FYE 31Dec): RM79.766 mil (Eps: 0.0289), PAT: 13.40%
2020 (FYE 31Dec): RM71.599 mil (Eps: 0.0202), PAT: 10.39%

Major customer (2023)
1.Golden Sky: 6.89%
2.Mr Paint Shop Sdn Bhd: 6.09%
3.Best Team Marketing Sdn Bhd: 3.66%
4.Pintar Ekslusif Sdn Bhd: 3.42%
5.UA Paints & Hardware Sdn Bhd: 3.25%
***total 23.31%

Major Sharesholders
1.Goh Chye Hin: 44.5% (direct)
2.Kee Hui Lang: 7.51% (direct)

Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM0.701 mil
key management remuneration: RM0.35 mil – RM0.55 mil
total (max): RM1.251 mil or 4.17%

Use of funds
1.Construction of Perak Plant: 42.78%
2.Purchase and commissioning of automated paint production system: 29.41%
3.Purchase of 250 sets of Smart Colour POS Tinting Machine: 13.37%
4.Working capital: 3.48%
5.Estimated listing expenses: 10.96%

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

Overall is competitive industry & the company revenue still slowing slow. The Perak plant will increase their manufacturing capacity.

Thursday, May 2, 2024

FEYTECH 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: 02 May 2024
Close to apply: 08 May 2024
Balloting: 10 May 2024
Listing date: 21 May 2024

Share Capital
Market cap: RM674.56 mil
Total Shares: 843.2 mil shares

Industry CARG
Automotive cover industry size in Malaysia: 4.28%
Automotive seat industry size in Malaysia: 7.48%
Industry competitors comparison (Gross profit%)

1.Feytech: 41.1% (PE15.3)
2.Pecca: 31.2% (PE22.37)
3.APM: 18.4% (PE9.21)
4.Toyota Boshoku UMW Sdn Bhd: 22.4%
5.Lear Automotive (Malaysia) Sdn Bhd: 26.7% (PE13.56, NYSE)
6.Others: 5.4% to 81.7%

Business (FYE 2023)
Manufacturing of automotive covers
1. Automotive seat covers: 45.3%
2. Interior part covers: 16.3%
3. Sales of automotive seats: 38.4%
Revenue by Geo
Malaysia: 97%
Others: 3%

Fundamental
1.Market: Main Market
2.Price: RM0.80
3.Forecast P/E: PE15.3
4.ROE(Pro forma III): 20.18%
5.ROE: 34.29% (FYE2023), 32.77%(FYE2022), 26.13%(FYE2021), 28.74%(FYE2020)
6.Net asset: RM0.26
7.Total debt to current asset: 0.305 (Debt: 73.221mil, Non-Current Asset: 50.614mil, Current asset: 240.051mil)
8.Dividend policy: 40% PAT dividend policy.
9. Shariah status: Shariah

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Dec): RM211.223 mil (Eps: 0.052), PAT: 20.8%
2022 (FYE 31Dec): RM126.877 mil (Eps: 0.033), PAT: 21.7%
2021 (FYE 31Dec): RM85.179 mil (Eps: 0.023),PAT: 22.4%
2020 (FYE 31Dec): RM79.368 mil (Eps: 0.021),PAT: 22.8%

Major customer (2023)
1.Mazda Malaysia: 39.7%
2.APM companies: 29.4%
3.Kia Malaysia: 22.5%
4.Adient companies: 2.5%
5.Ilusi Mantap Sdn Bhd: 1.7%
***total 95.80%

Major Sharesholders
1.Tan Sun Sun: 35% (direct)
2.Go Yoong Chang: 26.7% (direct)
3.Connie Go: 8.3% (direct)
Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM2.930 mil
key management remuneration: RM0.85 mil – RM0.95 mil
total (max): RM3.88 mil or 4.8%

Use of funds
1.Acquisition of land: 10.4%
2.Construction of new corporate office with new manufacturing plant and warehouse: 18.9%
3.Construction of new Kulim Plant 2: 16.8%
4.Purchase of new machineries: 2.6%
5.Working capital: 45.5%
6.Estimated listing expenses: 7.0%

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