CREST GROUP BERHAD

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

Open to apply: 18/09/2024  
Close to apply: 25/09/2024
Balloting: 30/09/2024
Listing date: 09/10/2024

Share Capital  
Market cap: RM302.9593 mil 
Total Shares: 865.598 mil shares

Industry CARG 
Imaging, analysis and testing industry size, Malaysia, 2019 – 2023: 8.37%
E&E industry size, Malaysia, 2019 – 2023: 9.0%
Semiconductor industry size, Malaysia, 2019 – 2023: 11.77%
Industry competitors comparison (net profit%)
1. Crest Group: 10.71%
2. CLMO technology Sdn Bhd: 15.99% 
3. MTSC Solution Sdn Bhd: 17.92%
4. QES Group Berhad: 7.96% (PE28.95)
5. Others: 0.73% to 3.64%

Business (FPE 2024) 
Provision of imaging, analytical and test solutions used primarily for quality inspection, sample analysis and R&D. (for industries like semiconductor, E&E, academic, automotive, oil and gas, aviation, life sciences and healthcare.)
Revenue by segment
1. Provision of imaging, analytical and test solutions: 81.06%
2. Provision of after-sales services: 18.94%
Revenue by Geo
1. Malaysia: 51.3%
2. Thailand: 17.4%
3. PRC: 19.3%
4. Singapore: 5.2%
5. Others: 6.8%

Fundamental
1.Market: Ace Market
2.Price: RM0.35
3.Forecast P/E: 16.59
4.ROE(Pro Forma): 19.5% (forecast)
5.ROE:  34.06%(FYE2023),  33.14%(FYE2022), 30.21%(FYE2021), 22.29% (FYE2020)
6.Net asset: 0.11
7.Total debt to current asset:  0.327 (Debt: 45.956mil, Non-Current Asset: 6.677mil, Current asset: 140.713mil)
8.Dividend policy: 30% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)  
2024 (FPE, 30Apr, 4mths): RM49.523 mil (Eps: 0.0035), PAT: 5.90%
2023 (FPE 31Dec): RM187.619 mil (Eps: 0.0238), PAT: 10.7%
2022 (FYE 31Dec): RM170.202 mil (Eps: 0.0208), PAT: 10.6%
2021 (FYE 31Dec): RM148.410 mil (Eps: 0.0202),PAT: 11.7%
2020 (FYE 31Dec): RM124.425 mil (Eps: 0.0154),PAT: 10.9%
***Prospectuses book didn’t use enlarged shares after IPO for EPS calculation, hence we apply our own calculation for EPS result).

Major customer (FPE2024)  
1. Customer group E: 9.61%
2. Customer group I: 4.44%
3. Customer group J: 4.11%
4. Chulabhorn Research Institute: 4.09%
5. Thai Tohken Thermo Co Ltd: 3.69%
***total 25.94%

Major Sharesholders  
1. Climan: 55.00% (direct)
2. Lim Siong Wai: 5.98% (direct), 55% (Indirect)
3. Au Chun Mun: 5.65% (direct), 55% (Indirect)
4. Yap Kian Meng: 5.65% (direct), 55% (Indirect)

Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM2.914 mil
key management remuneration: RM1.15 mil – RM1.35 mil
total (max): RM4.264 mil or 7.97%

Use of funds  
1. Setup of a new centralised headquarters: 15.762mil, 34.45%
2. Business expansion: 14.517mil, 31.73%
3. Purchase of additional demonstration equipment:  5.868mil, 12.83%
4. Expansion of technical support and maintenance team: 3.6mil, 7.87%
5. Estimated listing expenses: 6mil, 13.12%

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 to high risk investment, and also come with grow opportunities. 

*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.