IPO

Wednesday, October 9, 2024

3REN 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: 09/10/2024
Close to apply: 23/10/2024
Balloting: 25/10/2024
Listing date: 06/11/2024
 
Share Capital
Market cap: RM182 mil
Total Shares: 650 mil shares
1st day listing tradable shares: 232.78 mil shares

Industry CARG
1. Product engineering service revenue (M’sia, 2020-2022): 20.6%
2. Global product engineering services industry (2020-2023): 15.5%
3. Industry size for IC assembly and test services in Malaysia (2020-2023): 8.6% 
4. Global industry size for IC assembly and test services (2020-2023): 4.0%
Industry competitors comparison (net profit%)
1.    3REN Group: 12.2%   
2.    Infinecs System Sdn Bhd (inc IC test): 9.4%
3.    Nityo Infotech Services Sdn Bhd (inc IC test): 7.3%
4.    Oppstar (enginerring services): 27.3%
5.    ECA (automated equipment) : 30.3%
6.    Genetec (automated equipment): 23%
7.    Penta (automated equipment): 20.3%
8.    Others: losses to 85.4%
 
Business (FPE 2024)  
Automation solutions and engineering services provider semiconductor and electronics industry.
Revenue by segment
(a) Product engineering services: 37.22%
(b) Engineering support services for IC assembly and testing: 35.55%
(c) Design, development and sale of digitalised solutions: 18.90%
(d) Design, development and sale of automated equipment: 8.33%
Revenue by Geo
(a) Malaysia : 96.48%
(b) Overseas : 3.52%
 
Fundamental
1.Market: Ace Market
2.Price: RM0.28
3.Forecast P/E: 18.92 (FPE2024, EPS RM0.0074,
***we decided not to follow prospectus PE)
4.ROE(Pro Forma III): 10.55%
5.ROE: 14.98% (FYE2024), 19.65% (FYE2023), 20.96%(FYE2022), 32.18%(FYE2021), 32.49%(FYE2020)
6.Net asset: 0.14
7.Total debt to current asset: 0.20  (Debt: 16.695mil, Non-Current Asset: 24.2mil, Current asset: 83.09mil)
8.Dividend policy: didn’t have formal dividend policy.
9. Shariah status: YES
 
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2024 (FYE 30Jun): RM45.518 mil (Eps: 0.0074), PAT: 10.5%
2023 (FYE 31Dec): RM94.891 mil (Eps: 0.0178), PAT: 12.22%
2022 (FYE 31Dec): RM103.598 mil (Eps: 0.0185), PAT: 11.62%
2021 (FYE 31Dec): RM74.164 mil (Eps: 0.0247), PAT: 21.67%
2020 (FYE 31Dec): RM63.020 mil (Eps: 0.0173), PAT: 17.85%
 
Major customer (FPE024)
1.      Intel group of companies: 69.58%
2.      KellyOCG: 15.79%
3.      Customer C: 2.46%
4.      Customer F group of companies: 2.45%
5.      Customer A: 2.20%
***total 92.48%
 
Major Sharesholders  
1.    Koh Dim Kuan : 4.31% (direct), 40% (indirect)
2.    Lee Chee Hoo : 19.88% (direct), 40% (indirect)
3.    Malaysian Technology Development Corporation Sdn Bhd (MTDC): 4.99% (direct)
4.    Low Chee Onn : 4.82% (direct)
5.    R3 Capital: 40% (direct)
6.    Khazanah: 4.99% (indirect)

Directors & Key Management Remuneration for FYE2024  
(from Revenue & other income 2023)
Total director remuneration: RM0.919 mil
key management remuneration: RM1.20 mil – RM1.45 mil
total (max): RM2.369 mil or 8.61%

Use of Fund 

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 of investment. 

*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.