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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.
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.