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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: 27/09/2024
Close to apply: 15/10/2024
Balloting: 18/10/2024
Listing date: 29/10/2024
Close to apply: 15/10/2024
Balloting: 18/10/2024
Listing date: 29/10/2024
Share Capital
Market cap: RM93.99 mil
Total Shares: 391.627 mil shares
1st day listing tradable shares: 118.7 mil shares
Industry CARG
Fortified F&B industry size (Malaysia), 2018 – 2023: 6.87%
Dietary supplements industry in Malaysia 2018-2023: 11.57%
Industry competitors comparison (net profit%)
1. OB Holdings Berhad 10.81%
2. Nova Wellness Group Berhad: 32.93% (PE17.76)
3. High Valley Contract Manufacturing (GMP) Sdn Bhd: 18.96%
4. Len Fa Medical Supplies (M) Sdn Bhd: 11.97%
5. Excel Herbal Industries Sdn Bhd: 8.70%
6. Others: losses to 8.51%
Business (FYE 2024)
i. Provision of manufacturing services of fortified F&B and dietary supplements to third party brand owners.
ii. Manufacturing, sales and marketing of fortified F&B and dietary supplements under our house brands
Revenue by Segment
i. Provision of manufacturing services: 62.37%
ii. Sales of house brands’ products: 23.86%
iii. Trading of milk powder and other activities: 13.77%
Revenue by Geo
i. Malaysia: 90.83%
ii. Others: 9.17%
i. Provision of manufacturing services of fortified F&B and dietary supplements to third party brand owners.
ii. Manufacturing, sales and marketing of fortified F&B and dietary supplements under our house brands
Revenue by Segment
i. Provision of manufacturing services: 62.37%
ii. Sales of house brands’ products: 23.86%
iii. Trading of milk powder and other activities: 13.77%
Revenue by Geo
i. Malaysia: 90.83%
ii. Others: 9.17%
Fundamental
1.Market: Ace Market
2.Price: RM0.24
3.Forecast P/E: 17.14
4.ROE(Pro forma): 9.3%
5.ROE: 17.0% (FYE2024) , 35.71%(FYE2023), 30.32%(FYE2022), 23.44%(FYE2021)
6.Net asset: 0.15
7.Total debt to current asset: 0.389 (Debt: 20.169mil, Non-Current Asset: 27.153mil, Current asset: 51.880mil)
8.Dividend policy: didn’t have formal dividend policy.
9. Shariah status: Yes
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2024 (FYE 31May): RM50.886 mil (Eps: 0.0140), PAT: 10.81%
2023 (FYE 31May): RM46.449 mil (Eps: 0.0244), PAT: 20.61%
2022 (FYE 31May): RM43.558 mil (Eps: 0.0210), PAT: 18.88%
2021 (FYE 31May): RM29.719 mil (Eps: 0.0120),PAT: 15.85%
Major customer (FYE2024)
1. Der Abakus: 25.49%
2. DND World Sdn Bhd: 5.78%
3. Dutch Dairy (Thailand) Co.Ltd : 5.36%
4. Nxtvsion Sdn Bhd: 4.02%
5. Nature One Dairy (Hong Kong) Limited : 2.71%
***total 43.36%
Major Sharesholders
1. Teoh Eng Sia: 19.68% (direct), 49.68 (indirect)
2. Wong Chung Theng: 19.68% (direct), 49.68 (indirect)
3. Lee Bao Yu: 0.27% (direct)
4. Goodone: 30% (direct)
Directors & Key Management Remuneration for FYE2025
(from Revenue & other income 2024)
Total director remuneration: RM0.956 mil
key management remuneration: RM0.6 mil – RM0.9mil
total (max): RM1.856 mil or 8.55%
Use of funds
1. Repayment of bank borrowings: 14.9 mil, 51.74%
2. Purchase of machines: 5.0 mil, 17.36%
3. Product development expenditure: 0.9mil, 3.12%
4. Marketing and advertisement: 1.0 mil, 3.47%
5. Working capital: 3.0 mil, 10.42%
6. Estimated listing expenses: 4.0 mil, 13.89%
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 risk and middle growth business.
*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 is low risk and middle growth business.
*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.