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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: 21/10/2024
Close to apply: 28/10/2024
Balloting: 30/10/2024
Listing date: 11/11/2024
Balloting: 30/10/2024
Listing date: 11/11/2024
Share Capital
Market cap: RM566.16 mil
Total Shares: 844.97248 mil shares
Market cap: RM566.16 mil
Total Shares: 844.97248 mil shares
Industry CARG
Global merchandise exports and imports (2019-23): 5.8%
Global container port throughput (2018-22) : 2.2%
Industry competitors comparison (net profit%)
1. Mega Fortris Group: 13.0%
2. Acme Seals (Malaysia) S/B: 2.9%
3. Envotech Network S/B: 32.3%
4. Wesglow Industries S/B: 13.8%
5. Unisto Identification Systems S/B: 0.3%
Global merchandise exports and imports (2019-23): 5.8%
Global container port throughput (2018-22) : 2.2%
Industry competitors comparison (net profit%)
1. Mega Fortris Group: 13.0%
2. Acme Seals (Malaysia) S/B: 2.9%
3. Envotech Network S/B: 32.3%
4. Wesglow Industries S/B: 13.8%
5. Unisto Identification Systems S/B: 0.3%
Business (FYE 2024)
Design and manufacturing of security seals, and trading of related products and services.
Revenue by Distribution
1. Transportation and logistics: 16.03%
2. Petrochemicals and manufacturing: 16.03%
3. F&B and agriculture: 16.27%
4.Retail: 7.55%
5. Leisure, hospitality and gaming: 9.29%
6. Government: 2.91%
7. Others: 13.24%
8. Resellers: 25.85%
Revenue by segment
a. Design and manufacturing
(i) Plastic seals: 39.28%
(ii) Container seals: 13.34%
(iii) Cable seals: 18.04%
(iv) Security bags: 2.50%
b. Trading and related services
(i) Load securement products : 15.8%
(ii) Other related products and services: 11.04%
Revenue by Geo
1. Asia Pacific: 37.84%
2. Americas: 26.99%
3. Europe: 29.74%
4. Middle East: 5.43%
Design and manufacturing of security seals, and trading of related products and services.
Revenue by Distribution
1. Transportation and logistics: 16.03%
2. Petrochemicals and manufacturing: 16.03%
3. F&B and agriculture: 16.27%
4.Retail: 7.55%
5. Leisure, hospitality and gaming: 9.29%
6. Government: 2.91%
7. Others: 13.24%
8. Resellers: 25.85%
Revenue by segment
a. Design and manufacturing
(i) Plastic seals: 39.28%
(ii) Container seals: 13.34%
(iii) Cable seals: 18.04%
(iv) Security bags: 2.50%
b. Trading and related services
(i) Load securement products : 15.8%
(ii) Other related products and services: 11.04%
Revenue by Geo
1. Asia Pacific: 37.84%
2. Americas: 26.99%
3. Europe: 29.74%
4. Middle East: 5.43%
Fundamental
1.Market: Main Market
2.Forecast Price: RM0.67
3.Forecast P/E: 29.13 (PE range is possible overvalued zone)
4.ROE(Pro forma II): 9.16%
5.ROE: 15.57% (FYE2024), 13.16%(FYE2023), 7.34%(FYE2022), 12.68%(FYE2021)
6.Net asset: 0.25
7.Total debt to current asset: 0.53 (Debt: 124.664mil, Non-Current Asset: 103.944mil, Current asset: 234.207mil)
8.Dividend policy: up to 30% PAT dividend policy.
9. Shariah status: -
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2024 (FYE 30 Jun): RM166.712 mil (Eps: 0.0225), PAT: 12.96%
2023 (FYE 30 Jun): RM161.303 mil (Eps: 0.0148), PAT: 9.86%
2022 (FYE 30 Jun): RM155.211 mil (Eps: 0.0052), PAT: 4.49%
2021 (FYE 30 Jun): RM135.098 mil (Eps: 0.0071),PAT: 3.37%
Major customer (FYE 2024)
1. Interseal S.A. de C.V.: 4.42%
2. MFIB: 3.23%
3. Mega Fortris Philippines Inc: 2.85%
4. United States Postal Service: 2.54%
5. Flink S.A.C : 2.14%
***total 15.18%
1. Interseal S.A. de C.V.: 4.42%
2. MFIB: 3.23%
3. Mega Fortris Philippines Inc: 2.85%
4. United States Postal Service: 2.54%
5. Flink S.A.C : 2.14%
***total 15.18%
Major Sharesholders
1. Mega Fortris Global: 65% (direct)
2. Dato’ Nick Ng (Dato’ Ng Meng Kee): 65% (indirect)
3. Datuk Adrian Ng (Datuk Ng Meng Poh): 65% (indirect)
4. Mega Fortis Capital: 65% (indirect)
5. Ng Brothers Estate: 65% (indirect)
1. Mega Fortris Global: 65% (direct)
2. Dato’ Nick Ng (Dato’ Ng Meng Kee): 65% (indirect)
3. Datuk Adrian Ng (Datuk Ng Meng Poh): 65% (indirect)
4. Mega Fortis Capital: 65% (indirect)
5. Ng Brothers Estate: 65% (indirect)
Directors & Key Management Remuneration for FYE2025
(from Revenue & other income 2024)
Total director remuneration: RM0.493 mil
key management remuneration: RM1.50 mil – RM1.65 mil
total (max): RM1.993 mil or 2.63%
(from Revenue & other income 2024)
Total director remuneration: RM0.493 mil
key management remuneration: RM1.50 mil – RM1.65 mil
total (max): RM1.993 mil or 2.63%
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)
Avoid this IPO. Overall is high risk & low grow return 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.