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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: 25/11/2024
Close to apply: 29/11/2024
Price determination: 29/11/2024
Balloting: 03/12/2024
Listing date: 12/12/2024
Close to apply: 29/11/2024
Price determination: 29/11/2024
Balloting: 03/12/2024
Listing date: 12/12/2024
Share Capital
Market cap: RM1.75 bil
Total Shares: 1 bil shares
Industry CARG
1. Consumption of inorganic chemicals, Malaysia, 2019 – 2023: 5.51%
2. Number of manufacturing establishments in Malaysia that are users of inorganic chemicals, 2023: 72.22% (39,741 from 55,029)
3. Consumption of inorganic chemicals, Vietnam, 2019 – 2023: 3.46%
4. Consumption of inorganic chemicals, Singapore, 2019 – 2023: 5.95%
Industry competitors comparison (net profit%)
1.TMK: 7%
2.Malay-Sino Chemical Industries Sdn Bhd: 18.63%
3.Chemical Company of Malaysia Berhad: 11.36%
4.Kong Long Huat Chemicals Sdn Berhad: 7.82%
5.Others: Losses to 2.42%
Business (FPE 2024)
Chemical management comprising sourcing, processing and distribution of inorganic chemicals and value-added services, as well as the provision of chemical terminal services which encompasses bulk storage services.
Revenue by Segment
1. Provision of total chemical management: 99.2%
2. Provision of chemical terminal services: 0.8%
Revenue by Geo
1. Malaysia: 54.3%
2. Vietnam: 21.3%
3. Singapore: 20.7%
4. Others: 3.7%
Fundamental
1.Market: Main Market
2.Price: RM1.75 (will follow institutional price if lower)
3.Forecast P/E: 19.1
4.ROE(Pro forma II): 17.69%
5.ROE: 39.21%(FPE2024), 17.54%(FYE2023), 31.21%(FYE2022), 30.87%(FYE2012)
6.Net asset: RM0.68
7.Total debt to current asset: 0.821 (Debt: 712.957mil, Non-Current Asset: 520.404mil, Current asset: 868.473mil)
8.Dividend policy: 30%-50% PAT dividend policy.
9. Shariah status: Yes
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2024 (FPE 30Jun, 6mths)): RM659.434 mil (Eps: 0.0600), PAT: 9.1%
2023 (FYE 31Dec): RM1,306.096 mil (Eps: 0.0920), PAT: 7.0%
2022 (FYE 31Dec): RM1,484.338 mil (Eps: 0.1500), PAT: 10.1%
2021 (FYE 31Dec): RM1,126.844 mil (Eps: 0.1230), PAT: 10.9%
Major customer (FPE 2024)
1.Customer A: 11.2%
2.Customer B: 5.3%
3.Customer D: 4.6%
4.Customer C: 3.9%
5.Customer F: 2.6%
***total 27.6%
Major Sharesholders
1.Dato’ Lee Soon Hian: 39.5% (direct)
2.Leong Chao Seong: 9.5% (direct), 2.1% (indirect)
3.Wong Kin Wah: 4.6% (direct)
4.Lee Oi Loon: 6.5% (direct)
Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM2.3734 mil
key management remuneration: RM3.25 mil – RM3.40 mil
total (max): RM5.77 mil or 2.75%
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is high risk investment, and also come with middle grow return 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.