LIFE WATER 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: 22/10/2024
Close to apply: 30/10/2024
Balloting: 04/11/2024
Listing date: 13/11/2024

Share Capital    
Market cap: RM mil
Total Shares:  473.1795 mil shares
1st day listing tradable shares: 125.953 mil shares 

Industry CARG (2019-2023)  
Sales volume of manufactured soft drinks in Malaysia : 0.9%
Sales volume of manufactured bottled water in Malaysia: 2.3%
Import of beverages in Sabah: 7.4%
Export of beverages in Sabah:  6.9%

Industry competitors comparison (net profit%)
1. Life water group: 16.9%
2. F&N Beverages Manufacturing S/B: 5.0%
3. Spritzer: 12.53% (PE13.61)
4. R O Water S/B: 18%
5. Others: losses to 7.0%

Business (FYE 2024)  
Manufacturer of beverages namely drinking water and carbonated drinks. 
Revenue by segment
Drinking water: 83.3%
Carbonated drinks: 16.49%
Other product: 0.21%
Revenue by Geo
Sabah: 98.55%
Other markets: 1.45%

Fundamental 
1.Market: Main Market
2.Price: RM0.65
3.Forecast P/E: 10.94
4.ROE(Pro forma): 15.82%
5.ROE: 23% (FYE2024) , 21.96%(FYE2023), 21.22%(FYE2022), 29.62%(FYE2021)
6.Net asset: 0.38
7.Total debt to current asset: 0.95 (Debt: 121.065mil, Non-Current Asset: 171.854mil, Current asset: 126.997mil)
8.Dividend policy:  Min 20% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)  
2024 (FYE 30 Jun): RM166.532 mil (Eps: 0.0594), PAT: 16.89%
2023 (FPE 30 Jun): RM150.962 mil (Eps: 0.0436), PAT: 13.66%
2022 (FYE 30 Jun): RM121.400 mil (Eps: 0.0333), PAT: 12.96%
2021 (FYE 30 Jun): RM103.525 mil (Eps: 0.0373), PAT: 17.06%

Major customer (FYE2024)  
1. Bataras Group: 4.99%
2. Eco Water: 2.82%
3. Mu Group: 2.26%
4. Sabanah Group: 1.77%
5. Servay Group: 1.65%
***total 13.49%

Major Sharesholders    
1. Scarecrow Holding: 36.68% (direct)
2. Liew Hen Kong: 36.68% (indirect)
3. Chin Lee Ling: 36.68% (indirect)
4. Tan Hwng Kuen: 18.35% (direct)
5. Lim Young Piau: 18.35% (direct) 

Directors & Key Management Remuneration for FYE2025  
(from Revenue & other income 2024)
Total director remuneration: RM7.630 mil
key management remuneration: RM0.90 mil – RM1.050 mil
total (max): RM8.68 mil or 10.8%

Use of funds 

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

Overall, is a low risk business model, and low-to-mid level of grow 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.