Copyright@http://lchipo.blogspot.com/
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: 12 Jun 2024
Close to apply: 20 Jun 2024
Balloting: 24 Jun 2024
Listing date: 03 Jul 2024
Close to apply: 20 Jun 2024
Balloting: 24 Jun 2024
Listing date: 03 Jul 2024
Share Capital
Market cap: RM140 mil
Total Shares: 400 mil shares
Industry CARG
Historical Market Size (Revenue) and Growth Forecast for the Enterprise IT Services Industry in Malaysia, 2024-2028f: 5.7%
Industry competitors comparison (net profit%)
1. GOHUB: 16.12%
2. Tech-store Malaysia Sdn Bhd: 17.1%
3. LG CNS Malaysia Sdn Bhd: 8.7%
4. Comcentric Solutions Sdn Bhd: 4.9%
5. Others: -20.2% to 2.6%
Business (FYE 2023)
Provision of enterprise IT services, focusing on transportation IT solutions (including customised software development systems and integration of hardware and software systems).
Maintenance and support services as well as terminal management services.
Provision of enterprise IT services, focusing on transportation IT solutions (including customised software development systems and integration of hardware and software systems).
Maintenance and support services as well as terminal management services.
Revenue by segments
Rail: 71.37%
Bus: 27.06%
Other: 1.57%
Rail: 71.37%
Bus: 27.06%
Other: 1.57%
Fundamental
1.Market: Ace Market
2.Price: RM0.35
3.P/E: 19.77
4.ROE(Pro forma II): 13.50%
5.ROE: 39.82% (FYE2023), 56.55%(FYE2022), 33.56%(FYE2021), 47.53%(FYE2020)
6.Net asset: 0.13
7.Total debt to current asset: 0.57 (Debt: 33.238mil, Non-Current Asset: 27.865mil, Current asset: 57.848mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Dec): RM43.946 mil (Eps: 0.0177), PAT: 16.12%
2022 (FYE 31Dec): RM26.549 mil (Eps: 0.0151), PAT: 22.81%
2021 (FYE 31Dec): RM20.314 mil (Eps: 0.0060), PAT: 11.82%
2020 (FYE 31Dec): RM18.973 mil (Eps: 0.0057), PAT: 11.91%
Major customer (FYE2023)
1. KTMB : 69.28%
2. Syarikat Pengangkutan Maju Berhad Group of Companies: 2.32%
3. Maju Group of Companies: 4.32%
4. Customer A: 2.45%
5. Cityliner Sdn Bhd: 2.40%
***total 80.77%
Major Sharesholders
1. Tan Cherng Thong: 55% (indirect)
2. Lee Li Yee: 55% (indirect)
3. Hong Boon Huon: 1.07% (direct)
4. Eng Chee Seng: 0.71% (direct)
5. GHSB: 55% (direct)
6. TCT international: 55% (indirect)
Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM1.035 mil
key management remuneration: RM1.35 mil – RM1.60 mil
total (max): RM2.635 mil or 11.73%
Use of funds
1. Business Expansion
- Expansion of our workforce: RM10.1mil, 26.92%
- Capital expenditure on equipment and tools: RM6.5mil, 17.33%
- Acquisition of Star Central Office Tower: RM3.715mil, 9.9%
- D&D: RM1.9 mil, 5.06%
- Set-up of new integrated centre: RM1.5 mil, 4%
- Business development and marketing: RM1.0mil, 2.67%
2. Repayment of bank borrowings: RM4.0 mil, 10.66%
3. Working capital: RM4.798 mil, 12.8%
4. Estimated listing expenses: RM4.0 mil, 10.66%
***total RM37.513 mil
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall more to high risk business model. Their business model to over focus on one major customer KTMB. Their business need to get more difference type of customer to get more difference source of income. The current project to get Sabah Port Authority (Ferry terminals) business will is one of the good effort.
*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.
Overall more to high risk business model. Their business model to over focus on one major customer KTMB. Their business need to get more difference type of customer to get more difference source of income. The current project to get Sabah Port Authority (Ferry terminals) business will is one of the good effort.
*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.