VANZO HOLDINGS 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: 27/11/2024
Close to apply: 04/12/2024
Balloting: 09/12/2024
Listing date: 17/12/2024

Share Capital 
Market cap: RM70 mil
Total Shares: 466.7511 mil shares

Industry CARG  
Air fragrance industry size in Malaysia (2021-2023): 10.7%
Air fragrance industry size in Malaysia (2024f-2026f): 9.0% 
Industry competitors comparison (net profit%)
1. Vanzo Group: 12.5%
2. The Procter & Gamble Company: 17.8%
3. Kobayashi Pharmaceutical Co., Ltd: 12.1%
4. Reckitt Benckiser Group plc: 11.3%
5. Farcent Enterprise Co., Ltd: 9.9%
6. Others: losses to 7.7%

Business (FYE 2024)  
Design, marketing and sale of air fragrance and fragrance-related products.
Revenue by segment
1. Car fragrances: 77.6%
2. Indoor fragrances: 21.3%
3. Personal and household care products: 1.0%
4. Accessories and others: 0.1%

Revenue by Geo
1. Malaysia: 98.9%
2. Overseas: 1.1%

Fundamental   
1.Market: Ace Market
2.Price: RM0.15
3.Forecast P/E: 14.29
4.ROE(Pro forma): 21.78%
5.ROE: 39.6%(FPE2024), 55.7%(FYE2023),  58.9%(FYE2022), 76.4%(FYE2021)
6.Net asset: 0.05
7.Total debt to current asset: 0.395  (Debt: 9.647 mil, Non-Current Asset: 7.587mil, Current asset: 24.444mil)
8.Dividend policy:  didn’t have formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)   
2024 (FPE 30Jun, 9mths): RM36.775 (Eps: 0.0078), PAT: 9.9%
2023 (FYE 30Sep): RM40.855 mil (Eps: 0.0109), PAT: 12.5%
2022 (FYE 30Sep): RM33.970 mil (Eps: 0.0092),PAT: 12.4%
2021 (FYE 30Sep): RM22.791 mil (Eps: 0.0065),PAT: 9.5%

Major customer (FPE 2024)   
1. Watson’s Personal Care Stores Sdn Bhd: 25.3%
2. Luxury Accessories Enterprise: 4.7%
3. Mr. D.I.Y. Trading Sdn Bhd: 4.0%
4. Lotuss Stores (Malaysia) Sdn Bhd: 3.9%
5. MM One Stop Station Enterprise: 3.3%
***total 41.2%

Major Sharesholders  
1. Allan Wong Liang Tzer: 54% (indirect)
2. Fragrance Century: 54% (direct)
3. Lim Chee Lip: 16% (direct), 0.1% (indirect)
4. Choe Sook Ling: 0.1% (direct), 16% (indirect) 

Directors & Key Management Remuneration for FYE2024 (from Revenue & other income 2023)
Total director remuneration: RM0.6565 mil
key management remuneration: RM0.60 mil – RM0.75 mil
total (max): RM1.4065 mil or 7.38%

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 mid risk investment, and also come with mid-high 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.