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Open to apply: 13/03/2025
Close to apply: 25/03/2025
Balloting: 28/03/2025
Listing date: 09/04/2025
Close to apply: 25/03/2025
Balloting: 28/03/2025
Listing date: 09/04/2025
Share Capital
Market cap: RM346.464 mil
Total Shares: 1.4436 bil shares
1st day listing tradable shares: 453.028 mil shares
Industry CARG (2022-2024)
1. Sales value* of chemicals and chemical products in Malaysia: 1.6%
2. Import value of additives and preparations* for mineral oils or similar purpose liquids in Malaysia: 0.9%
3. Export value of additives and preparations* for mineral oils or similar purpose liquids in Malaysia: 10.0%
4. Production of O&G in Malaysia, Crude oil and condensates: -2.4%
5. Production of O&G in Malaysia, Natural gas: 2.5%
6. Production of O&G in Malaysia, Petroleum products: -0.3%
Oil well drilled
1. Number of wells completed in Saudi Arabia (2019-2023): -7.9%
2. Number of wells drilled in Thailand (2019-2023): 4.6%
3. Number of Wells Drilled in Indonesia (2020-2024): 37.7%
4. Number of wells drilled and evaluated in Oman (2019-2023): -4.6%
Industry competitors comparison (net profit%)
1. Sumisaujana Group: 15.4%
2. Hextar Kimia S/B: 17.2%
3. Innochems Technologies S/B: 12.3%
4. Amtech Chemical S/B: 9.8%
5. Ova Chem S/B: 7.8%
6. Others: losses to 5.7%
Business (FPE 2024)
Involved in manufacturing of O&G specialty chemicals, trading of O&G specialty and industrial chemicals, and provision of related support services
(i) Manufacturing segment
1. Drilling fluid chemicals: 79.84%
2. Production and refinery chemicals: 6.49%
3. Others: -
(ii) Trading and related support services segment
1. Supply of O&G specialty and industrial chemicals: 9.37% (Catalyst, Sulfiding agent, fuel additives, other)
2. Provision of technical related support services: 4.30%
Revenue by Geo
1. Asia Pacific: 75.02%
2. Middle East: 14.87%
3. Other regions: 10.11%
Fundamental
1.Market: Ace Market
2.Price: RM0.24
3.Forecast P/E: 24.74
4.ROE(Pro forma): 9.24%
5.ROE: 43.23%(FYE2023), 26.99%(FYE2022), 17.34%(FYE2021)
6.Net asset: 0.10
7.Total debt to current asset: 0.426 (Debt: 46.646mil, Non-Current Asset: 88.796mil, Current asset: 109.384mil)
8.Dividend policy: 30% PAT dividend policy.
9. Shariah status: Yes
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 30Sep, 9mths): RM130.706 mil (Eps: 0.0073), PAT: 8.03%
2023 (FYE 31Dec): RM198.783 mil (Eps: 0.0212), PAT: 15.4%
2022 (FYE 31Dec): RM145.817 mil (Eps: 0.0116), PAT: 11.51%
2021 (FYE 31Dec): RM95.725 mil (Eps: 0.0063), PAT: 9.5%
Major customer (FPE2024)
1. Baker Hughes Group: 31.07%
2. Customer A: 21.06%
3. Customer B: 15.02%
4. Petronas Group: 11.02%
5. TCM Chemicals Inc: 9.62%
***total 87.79%
Major Sharesholders
1. Atreon: 64.59% (direct)
2. Norazlam Bin Norbi: 1.54% (direct), 65.2% (indirect)
3. Toh Chee Seng: 1.54% (direct), 64.95% (indirect)
4. Ramli Bin Mohamad: 0.34% (direct)
Directors & Key Management Remuneration for FPE2024
(from Revenue & other income 2023)
Total director remuneration: RM5.473 mil
key management remuneration: RM3.1 mil – RM3.3 mil
total (max): RM8.773 mil or 12.93%
Use of funds
Overall is high risk investment, and also come with low 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.