Initial Public Offering (IPO)

Sunday, September 8, 2024

SOLAR DISTRICT COOLING GROUP BERHAD

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Open to apply: 28 Aug 2024
Close to apply: 06 Sep 2024
Balloting: 10 Sep 2024
Listing date: 19 Sep 2024

Share Capital
Market cap: RM161.052 mil
Total Shares: 423.822 mil shares

Industry CARG
Existing supply of purpose-built offices: 0.5%
Existing supply of serviced apartments: 10.0%
Existing supply of hotels: 1.0%

Industry competitors comparison (net profit%)
1. SDCG: 23.8%
2. ADF Technologies S/B: 48.3%
3. Pegasus Automation S/B: 18.5%
4. Solar-mate S/B: 8.7%
5. Others: losses to 4.1%

Business (FPE 2024)
Involved in the provision and maintenance of BMS, solar thermal systems and energy saving services. We also provide maintenance services for other systems and equipment.
Revenue by segment
1. BMS: 63.78%
2. Solar thermal systems and energy saving services: 23.88%
3. Maintenance of other systems and equipment: 12.34%
Revenue by Geo
1. Malaysia: 99.82%
2. Others: 0.18%
Recurrent and non-recurrent revenue
1. Non-recurrent: 67.37%
2. Recurrent: 32.63%

Fundamental
1.Market: Ace Market
2.Price: RM0.38
3.Forecast P/E: 25.38
4.ROE(Pro forma): 6.99%
5.ROE: 20.3%(FPE2024), 32.37%(FYE2023), 33.98%(FYE2022), 25.76%(FYE2021), 13.99%(FYE2020)
6.Net asset: 0.15
7.Total debt to current asset: 0.04 (Debt: 2.509mil, Non-Current Asset: 4.407mil, Current asset: 60.311mil)
8.Dividend policy: Doesn’t have formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2024 (FPE 31 May): RM8.948 mil (Eps: 0.0103),PAT: 20.24%
2023 (FYE 31Dec): RM26.622 mil (Eps: 0.0150),PAT: 23.83%
2022 (FYE 31Dec): RM18.648 mil (Eps: 0.0123),PAT: 27.80%
2021 (FYE 31Dec): RM17.594 mil (Eps: 0.0099),PAT: 24.01%
2020 (FYE 31Dec): RM14.709 mil (Eps: 0.0047),PAT: 13.49%

Order Book
1. FY2024: 16.468mil
2. FY2025: 6.122 mil
3. FY2026: 0.194 mil

Major customer (FP2024)
1. One Medicare Sdn Bhd: 18.36%
2. Megatara Sdn Bhd: 11.97%
3. Customer F: 11.41%
4. Evergrow Ventures Sdn Bhd: 8.55%
5. Pembinaan Mitrajaya Sdn Bhd: 7.81%
***total 58.10%

Major Sharesholders
1. Edison Kong: 64.8% (direct), 7.2% (indirect)
2. Eileen Liuk: 7.20% (direct), 64.80% (indirect)
Directors & Key Management Remuneration for FY2024
(from Revenue & other income 2023)

Total director remuneration: RM0.93 mil
key management remuneration: RM0.55 mil – RM0.75 mil
total (max): RM1.71 mil or 11.91%

Use of funds
1. Expand Headquarters: 1.9mil, 4.21%
2. Tender bonds and/or performance bonds for future projects: 5 mil, 11.09%
3. Purchase of materials for BMS segment, and solar thermal systems and energy saving services segment: 18.7mil, 41.47%
4. General working capital: 12.673mil, 28.1%
5. Capital Expenditure: 2.522mil, 5.59%
6. Estimated listing expenses: 4.3mil, 9.54%

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 and mid-high grow return opportunities in this 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.

Thursday, August 29, 2024

SOLAR DISTRICT COOLING GROUP BERHAD

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

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Open to apply: 28 Aug 2024
Close to apply: 06 Sep 2024
Balloting: 10 Sep 2024
Listing date: 19 Sep 2024

Friday, August 16, 2024

STEEL HAWK BERHAD

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Open to apply: 16 Aug 2024
Close to apply: 23 Aug 2024
Balloting: 27 Aug 2024
Listing date: 05 Sep 2024

Share Capital
Market cap: RM73.5 mil
Total Shares: 490 mil shares

Industry CARG
Compound annual growth rate (“CAGR”)(2024-2028)(base year of 2023): 1.34%
Industry competitors comparison (net profit%)
1. SKHAWK: 9.9% (PE10)
2. Dayang: 21.13% (PE12.4)
3. Dialog: 17.35% (PE24)
4. Petra Energy: 9.52% (PE8.5)
5. Carimin: 8.98% (PE6.2)
6. Others: losses to 8.04%

Business (FYE 2024)
Involved in the provision of onshore and offshore support services for the O&G industry.

Revenue by segments
1. EPCC services and facilities improvement / maintenance: 80.51%
2. Installation and maintenance of oilfield equipment: 12.11%
3. Supply of oilfield equipment: 7.38%

Fundamental
1.Market: Ace Market (The company is transfer from LEAP market to ACE market by IPO)
2.Price: RM0.15
3.Forecast P/E: 10
4.ROE(Pro forma II): 24.06%
5.ROE: 35.28%(FPE2024), 33.92%(FYE2023), 38.89%(FYE2022), 21.32%(FYE2021)
6.Net asset: 0.07
7.Total debt to current asset: 0.559 (Debt: 34.876mil, Non-Current Asset: 8.39mil, Current asset: 62.434mil)
8.Dividend policy: 30% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2024 (FPE 31Mar): RM19.736 mil (Eps: 0.0066), PAT: 16.39%
2023 (FYE 31Dec): RM72.537 mil (Eps: 0.0147), PAT: 9.95%
2022 (FYE 31Dec): RM66.326 mil (Eps: 0.0119), PAT: 8.76 %
2021 (FYE 31Dec): RM24.845 mil (Eps: 0.0042), PAT: 8.37%

Order Book (2023)
1. 2024 : RM19.69 mil

Major customer (FPE 2024)
1. PETRONAS group: 61.39%
2. PBH Engineering Sdn Bhd: 18.97%
3. Customer F: 16.79%
4. Sigma Water Engineering (M) Sdn Bhd: 1.22%
5. Customer E: 0.98%
***total 99.35%

Major Sharesholders
1. Radiant Capital: 36.40% (direct)
2. Salimi Bin Khairuddin: 36.4% (indirect)
3. Khairul Nazri Bin Kamarudin: 36.40 % (indirect)
4. Dato' Sharman : 9.99% (direct)
5. Datin Annie A/P V Sinniah: 9.99% (direct)

Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM1.111 mil
key management remuneration: RM1.0 mil – RM1.25 mil
total (max): RM2.361 mil or 11.33%

Use of funds
1. Construction of the Proposed Teluk Kalung Facility 2: 7mil, 51.85%
2. Working capital: 2 mil, 14.81%
3. Repayment of bank borrowings: 1 mil, 7.41%
4. Estimated listing expenses: 3.5 mil, 25.93%

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 mid grow return opportunities of investment.

Thursday, August 15, 2024

99 SPEED MART RETAIL HOLDINGS BERHAD

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Open to apply: 15 Aug 2024
Close to apply: 23 Aug 2024
Price Determination Date: 27 Aug 2024
Balloting: 29 Aug 2024
Listing date: 09 Sep 2024

Share Capital (might differ depend on final determination price)
Market cap: RM13.860 bil
Total Shares: 8.40 bil shares
1st day listing tradable shares: 1.428 bil shares

Industry CARG
Grocery-based Retail Industry in Malaysia, 2022–2028F (sales value)
Hypermarket: 5.3%
Supermarket: 6.4%
Mini-market: 5.4%
Convenience stores: 10.9%
Other grocery –based retailers: 4.0%

Industry competitors comparison (profit before tax margin %)
1. 99 Speedmart: 5.8%
2. 7-Eleven : 0.8%
3. KK supermart: 10.4%
4. Mynews: -1.0%
5. Others: -2.2% to 6.0%

Business (FPE 2024)
“99 Speedmart” chain of mini-market outlets involved in the retailing of daily necessities, with 2,542 outlets located nationwide.
Subsidiaries
1. 99SM : Retail of consumable merchandise and other household products via its network of “mini-market” outlets
2. 99EM: Retail of consumable merchandise and other household products via its network of “mini-market” outlets
3. Yiwu J-Jade Trading: Investment holding
4. Yiwu SM Import and Export: Exporting of consumable merchandise and household products

Fundamental
1.Market: Main Market
2.Price: RM1.65 (final price will determine at 27/08/2024)
3.Forecast P/E: 34.7
4.ROE(Pro Forma III): 43.81%
5.ROE: 78.93% (FPE2024), 73.9% (FYE2023) , 51.70%(FYE2022), 56.87%(FYE2021)
6.Net asset (Pro forma III): 0.14
7.Total debt to current asset: 1.048 (Debt: 2.036bil, Non-Current Asset: 1.309 bil, Current asset: 1.943 bil)
8.Dividend policy: 50% PAT dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 31 Mar, 3mth): RM2.424 bil (Eps: 0.016), PAT: 5.5%
2023 (FYE 31Dec): RM9,240 bil (Eps: 0.048), PAT: 4.3%
2022 (FYE 31Dec): RM8.075 bil (Eps: 0.039), PAT: 4.0%
2021 (FYE 31Dec): RM7.836 bil (Eps: 0.050),PAT: 5.3%

Major customer
Business model retail consumer. There is no single major customer.

Major Sharesholders
1. Lee LYG Holdings: 51.5% (direct)
2. Lee Thiam Wah: 25.7% (direct), 51.5% (indirect)

Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM3.335 mil
key management remuneration: RM2.20 mil – RM2.60 mil
total (max): RM5.935 mil or 0.70%

Use of funds
1. Expansion of network of outlets: 389 mil, 58.9%
2. Establishment of new DCs: 100 mil, 15.2%
3. Purchase of delivery trucks: 55 mil, 8.3%
4. Upgrading of existing outlets: 47.6 mil, 7.2%
5. Repayment of existing bank borrowings: 45 mil, 6.8%
6. Estimated listing expenses: 23.4 mil, 3.6%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is more to low risk business, but also come with low grow 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.

Thursday, August 8, 2024

VETECE HOLDINGS BERHAD

***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: 08 Aug 2024
Close to apply: 14 Aug 2024
Balloting: 16 Aug 2024
Listing date: 28 Aug 2024

Share Capital
Market cap: RM98 mil
Total Shares: 392 mil shares

Industry CARG
Historical market size (revenue) and growth forecast for the Enterprice IT services industry in Malaysia (2020-2028): 5.36%
Industry competitors comparison (net profit%)
1.Vetece : 28.4%
2.Ramssol Group Berhad: 19.8% (PE18.9)
3.Microlink Solution Berhad: 10.5% (recent Q4 24 losses)
4.Tentacle Technologies MSC Sdn Bhd: 17.4%
5.Infomina Berhad: 15.9% (PE22)
6.Others: 0.7% to 17.90%

Business (FPE 2024)
Provide implementation services, as well as maintenance, support and professional services and the resale of hardware and software.
Revenue by Segment
Implementation services: 51.29%
Maintenance, support and professional services: 44.85%
Resale of hardware and software: 3.86%
Revenue by Geo
Malaysia: 97.05%
Singapore: 1.08%
Hong Kong: 1.87%

Fundamental
1.Market: Ace Market
2.Price: RM0.25
3.Forecast P/E: 19.23 (we disagree prospectus book pg25 @ PE14.93)
4.ROE(Pro forma): 13.07%
5.ROE: 26.43%(FPE2024), 42.39%(FYE2023), 46.44%(FYE2022), 17.51%(FYE2021)
6.Net asset: RM0.10
7.Total debt to current asset: 0.068 (Debt: 2.349mil, Non-Current Asset: 7.319mil, Current asset: 34.27mil)
8.Dividend policy: didn’t have formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2024 (FPE 31 Mar): RM11.265 mil (Eps: 0.0076), PAT: 26.49%
2023 (FYE 31 Aug): RM23.133 mil (Eps: 0.0167), PAT: 28.38%
2022 (FYE 31 Aug): RM20.842 mil (Eps: 0.0106), PAT: 19.92%
2021 (FYE 31 Aug): RM20.045 mil (Eps: 0.0080), PAT: 15.66%

Order Book
1.FYE 2024: 2.465 mil
2.FYE 2025: 5.717 mil
3.FYE 2026: 1.064 mil

Major customer (FPE2024)
1. Telekom Malaysia Berhad Group: 53.54%
2. Client C: 7.91%
3. Client E: 5.82%
4. Client A Group : 8.98%
5. Client F: 3.84%
***total 100%

Major Sharesholders
1. Tee Chee Chiang: 61.32%
2. Chan Wai Hoong: 3.36%

Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM0.723 mil
key management remuneration: RM0.90 mil – RM1.10 mil
total (max): RM1.823 mil or 18.72%

Use of funds (MYR)
1. Roll out of new core products and services: 2.92mil, 8.95%
2. Strengthening of Singapore operations: 3.293mil, 13.44%
3. Establishment of a COE for software solutions: 3.795mil, 15.49%
4. Hardware and software licensing fees: 6.52mil, 26.61%
5. Loan repayments: 4.004mil, 16.34%
6. Estimated listing expenses: 4.696mil, 19.17%

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 high grow return opportunities.

Tuesday, August 6, 2024

ELRIDGE ENERGY HOLDINGS BERHAD

***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: 06 Aug 2024

Close to apply: 12 Aug 2024

Balloting: 14 Aug 2024

Listing date: 22 Aug 2024

Share Capital

Market cap: RM580 mil

Total Shares: 2.00 bil shares

Industry CARG (2019-2023)

Wood pellet industry size in Asia Pacific: 6.9%

Palm kernel shell industry size in Asia Pacific: 6.7%

Industry competitors comparison (net profit%)

1. EEHB : 7.0%

2. Rainbow Pellet Sdn Bhd: 27.4%

3. Kyoto Oils & Grains (M) Sdn Bhd: 12.1%

4. Top Energy Sdn Bhd: 7.7%

5. Maya Wood Pellets Sdn Bhd: 3.7%

6. Others: losses to 2.5%

Business (FPE 2024)

manufacturing and trading of biomass fuel products, particularly PKS and wood pellets.

Principal Activities

Manufacturing of PKS: 83.28%

Manufacturing and trading of wood pellets: 16.72%

Revenue by countries

Malaysia: 6.82%

Singapore: 47.59%

Indonesia: 31.54%

Japan: 14.05%

Fundamental

1.Market: Ace Market

2.Price: RM0.29

3.Forecast P/E: 24.61

4.ROE(forecast Pro forma III): 30.65%

5.ROE: 89.8% (FPE2024), 67.26% (FYE2023), 54.84%(FYE2022), 33.64%(FYE2021)

6.Net asset: RM0.05

7.Total debt to current asset: 0.40 (Debt: 76.521mil, Non-Current Asset: 32.287mil, Current asset: 190.745mil)

8.Dividend policy: No formal dividend policy.

9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)

2024 (FPE, 30Apr): RM117.657 mil (Eps: 0.0075), PAT: 12.72%

2023 (FPE 31Dec): RM335.251 mil (Eps: 0.0118), PAT: 7.03%

2022 (FYE 31Dec): RM144.440 mil (Eps: 0.0031), PAT: 4.35%

2021 (FYE 31Dec): RM115.114 mil (Eps: 0.0090),PAT: 1.51%

Major customer (FPE 2024)

1. PT. Apac Metal Indonesia: 31.54%

2. Z & Z SG Pte Ltd: 24.87%

3. Deus Ex Capital Pte Ltd.: 22.73%

4. JFE Shoji Corporation: 8.64%

5. Tokyo Sangyo Co., Ltd: 5.4%

***total 93.18%

Major Sharesholders

1. Yeo Hock Cheong: 5.01% (direct), 36.99% (indirect)

2. Kayavest: 16.37% (direct)

3. Mikro MSC: 20.62% (direct)

4. Bio Eneco Holding Sdn Bhd: 11.50% (direct)

5. Salihudin : 0.075% (direct)

Directors & Key Management Remuneration for FYE2024

(from Revenue & other income 2023)

Total director remuneration: RM1.356 mil

key management remuneration: RM0.40 mil – RM0.55 mil

total (max): RM1.906 mil or 4.12%

Use of funds

1. Construction of new factory and warehouse in Kuantan: 47mil, 46.31%

2. Purchase of new machineries and equipment: 21.141 mil, 20.82%

3. Working capital: 27.059 mil, 26.66%

4. Estimated listing expenses: 6.3mil, 6.21%

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

Overall is low to middle risk of investment, and have potential to fast in business revenue upon the 3 new factory to be completed by Q2, 2025.

Friday, July 19, 2024

SIK CHEONG BERHAD

***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: 19 Jul 2024
Close to apply: 30 Jul 2024
Balloting: 02 Aug 2024
Listing date: 13 Aug 2024

Share Capital
Market cap: RM71.82 mil
Total Shares: 266 mil shares

Industry CARG
RBD palm olein oil repackaging industry size in Malaysia 2018-2023(e): 40.6%
RBD palm olein oil repackaging industry size in Malaysia 2024(f)-2026(f): 20.9%
Industry competitors comparison (net profit%)
1. Sik Cheong Group: 8%
2. CI Holdings Berhad: 3.1%
3. Continental Edible Oil Industries Sdn Bhd: 3.9%
4. Bukit Seribu Holdings Sdn Bhd: 3.6%
5. Others: losses to 2.6%

Business (FYE 2024)
1. Investment holding
2. Repackaging, marketing and distribution of edible oil and other food products
3. Distribution of lamp oil and other trading products.
Revenue by Segment
1. Wholesalers: 41.82%
2. Retailers: 31.28%
3. Food manufacturers: 15.07%
4. Hotel, restaurant and catering operators: 11.83%
Revenue by Geo
1. Selangor: 58.37%
2. KL : 39.29%
3. Others: 2.34%

Fundamental
1.Market: Ace Market
2.Price: RM0.27
3.Forecast P/E: 11.35
4.ROE(Pro Forma): 15.70%
5.ROE: 24.07%(FYE2024), 30.20%(FYE2023), 16.35%(FYE2022), 11.08%(FYE2021)
6.Net asset: RM0.12
7.Total debt to current asset: 0.23 (Debt: 5.53mil, Non-Current Asset: 21.845mil, Current asset: 23.998mil)
8.Dividend policy: Didn’t have dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2024 (FPE 31Mar): RM79.583 mil (Eps: 0.0238), PAT: 7.95%
2023 (FYE 31Mar): RM78.236 mil (Eps: 0.0227), PAT: 7.71%
2022 (FYE 31Mar): RM59.742 mil (Eps: 0.0123), PAT: 5.46%
2021 (FYE 31Mar): RM42.574 mil (Eps: 0.0070), PAT: 4.35%

Major customer (FYE 2024)
1. Sri Ternak Group of companies: 5.86%
2. Low Seat Hoong group of companies: 5.64%
3. TCRS Restaurants Sdn Bhd: 3.36%
4. NSK group of companies: 2.68%
5. Kitarasa Sdn Bhd: 2.26%
***total 19.8%

Major Sharesholders
1. Wong Hing Ngiap: 33.07% (direct)
2. Wong Hin Loong: 33.07% (direct)

Directors & Key Management Remuneration for FYE2025
(from Revenue & other income FYE2024)
Total director remuneration: RM0.963 mil
key management remuneration: RM0.65 mil – RM0.80 mil
total (max): RM1.763 mil or 13.85%

Use of funds
1. Expansion of packaging facility: 7.18mil, 40.29%
2. Purchase of new delivery trucks: 0.89mil, 5.00%
3. Working capital: 5.95mil, 33.39%
4. Estimated listing expenses: 3.8mil, 21.32%

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