EPB GROUP BERHAD

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Open to apply: 27 June 2024
Close to apply: 31 July 2024
Balloting: 08 Aug 2024
Listing date: 23 Aug 2024

Share Capital 
Market cap:  RM208.32 mil
Total Shares: 372 mil shares

Industry CARG
Historical Market Size and Growth Forecast for the F&B Processing Machinery Industry in Malaysia, 2024-2028: 10.4%
Industry competitors comparison (net profit%)
1. EPB Group: 11.7%
2. Highpack Machinery Sdn Bhd: 10.2%
3. NRS Process Systems Sdn Bhd: 9.3%
4. Kimah Industrial Supplies (M) Sdn Bhd: 7.9%
5. Others: -34.3% to 7.7%

Business (FYE 2023) 
One-stop provider of food processing and packaging machinery solutions. 
Design, customisation, fabrication, integration and automation of production lines for food manufacturing and processing companies, based on customers’ needs.
Revenue by Segment
1. Food processing and packaging machinery solution: 82.33%
2. Tradng of cellulose casings: 11.92%
3. Manufacturing and trading of flexible packaging materials: 5.75%
Revenue by Geo
Malaysia:  30.35%
Indonesia: 25.81%
Philippines: 35.77%
Others: 8.07% 

Fundamental 
1.Market: Ace Market
2.Price: RM0.56
3.Forecast P/E: PE14.62
4.ROE(Pro forma III):  16.3%
5.ROE: 26.06% (FYE2023), 28.93%(FYE2022), 39.75%(FYE2021), 26.75%(FYE2020)
6.Net asset: 0.25
7.Total debt to current asset: 0.22 (Debt: 21.546mil, Non-Current Asset: 16.696mil, Current asset: 96.516mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%) 
2023 (FYE 31Dec): RM122.116 mil (Eps: 0.0383), PAT: 11.68%
2022 (FYE 31Dec): RM89.114 mil (Eps: 0.0330), PAT: 13.78% 
2021 (FYE 31Dec): RM75.717 mil (Eps: 0.0321), PAT: 15.75%
2020 (FYE 31Dec): RM61.689 mil (Eps: 0.0169), PAT: 10.21%

Order Book  
2024: 44.288 mil 

Major customer (2023) 
1. Customer B: 25.78%
2. Customer C: 9.59%
3. PT DagSap Endura Eatore: 7.50%
4. Customer D: 6.60%
5. PT. Wonokoyo Jaya Corporindo: 4.32% 
***total 53.79%

Major Sharesholders
1. Yeoh Chee Min: 38.98% (direct)
2. Liew Meng Hooi: 13.23% (direct)
3. Ooi Kim Kew: 14.99% (direct) 

Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM1.829 mil
key management remuneration: RM2.10 mil – RM2.50 mil
total (max): RM4.329 mil or 10.7%

Use of funds 
1. Acquisition of land: 13mil, 32.43%
2. Construction of factory: 10.5mil, 26.2%
3. Purchase of machinery: 1.1mil, 2.74%
4. Repayment  of bank borrowings: 3mil, 7.49%
5. Working capital: 8.479 mil, 21.16%
6. Estimated listing expenses: 4mil, 9.98%

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