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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: 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.
*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.