OCEAN FRESH 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: 12 Jun 2024
Close to apply: 20 Jun 2024
Balloting: 24 Jun 2024
Listing date: 04 Jul 2024

Share Capital
Market cap: RM58.84 mil
Total Shares: 210.146 mil shares

Industry CARG
1. Frozen seafood sales volume in Asia Pacific 2017-2023: 3.5%
Frozen seafood sales value in Asia Pacific 2017-2023: 6.7%
Global dried seafood sales value: 3.6%
Dried seafood sales value in Asia Pacific: 2017-2023(e): 3.8%
Seafood processing industry size in Malaysia 2015-20223: 9.7%
Industry competitors comparison (net profit%)
1. Ocean Fresh Berhad: 4.4%
2. PTRB:7.3%
3. Mayfresh Frozen Sea Products Sdn Bhd: 4.0%
4. Kuching Frozen Food Co Sdn Bhd: 3.1%
5. Others: losses to 2.6%

Business (FYE 2023)
1.Processing and trading of frozen seafood products: 97.61%
2.Provision of frozen seafood processing services: 2.39%
Revenue by Geo
1. Malaysia: 17.21%
2. Oversea: 82.79%

Fundamental 
1.Market: Ace Market
2.Price: RM0.28
3.P/E: 8.47 
4.ROE(Pro forma III): 12.33% 
5.ROE: 15.32%(FYE2023), 14.52%(FYE2022), 13.18%(FYE2021), 9.44%(FYE2020)
6.Net asset: RM0.27
7.Total debt to current asset: 0.2766 (Debt: 17.692mil, Non-Current Asset: 10.060mil, Current asset: 63.970mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Dec): RM159.454 mil (Eps: 0.0331), PAT: 4.36%
2022 (FYE 31Dec): RM156.330 mil (Eps: 0.0267), PAT: 3.58%
2021 (FYE 31Dec): RM158.469 mil (Eps: 0.0193), PAT: 2.56%
2020 (FYE 31Dec): RM94.055 mil (Eps: 0.0118), PAT: 2.64%

Major customer (FYE2023)
1. Customer F: 13.63%
2. Customer D: 8.47%
3. Customer I: 6.12%
4. Customer J: 3.90%
5. Customer K: 2.66%
***total 34.78%

Major Sharesholders 
1. Siang Hai Yong: 5.85% (direct)
2. Kee Wan Chum: 0.1% (direct)
3. Treasure Gain: 24.67% (direct)
4. Untung Besar: 16.49% (direct)
5. Sierra Mode: 6.61% (direct)
6. Dato’ Sri Chia Hooi Huak 6.51% (direct)
7. Law Chee Kheong : 4.55% (direct)
8. Heah Theare Haw: 4.06% (direct)

Directors & Key Management Remuneration for FYE2024 
(from Revenue & other income 2023)
Total director remuneration: RM0.714 mil
key management remuneration: RM0.40 mil – RM0.55 mil
total (max): RM1.264 mil or 6.0%

Use of funds
1. Capital expenditure for a new cold storage facility: RM8.0 mil, 57.09%
2. Working capital: RM2.514 mil, 17.94%
3. Estimated listing expenses: RM3.5mil, 24.97%
***total RM14.014mil

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

Overall is low PAT% industry. Business still will have chances to continue grow. 

*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.