IPO (Rating 3.5 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/03/16
Close to apply: 05/04/16
Listing date: 19/04/16
Fundamental
Market: Main Market
Price: RM1.42 (par value:RM0.50)
EPS: RM0.092
P/E: 15.434x
Cash & fixed deposit after IPO: RM0.34 per shares (Cash 65mil, Debt 20.9mil)
NA after IPO: RM0.80
Debt ratio: 0.147 (Debt: RM25.92 mil, Asset: RM176.58 mil)
Dividend policy: 40% PAT
Business
PLeather 100%: Car seat cover, automotive leather, car door trim cover...
PAviation 60%: Aircraft leather seat...
EEmpire 100%: Retail outlet (smart fit, quick fit, car accessory cover)
Main Revenue
Malaysia: 88.71%
Overseas: 11.29% (Netherlands, Australia, Singapore,USA, New Zealand & other less than 1%)
Business Shares
***Based on number of installed-leather-upholstery passenger vehicle units for OEM & PDI market segment
2011: 36.3%
2012: 38.4%
2013: 57.8%
2014: 65.2%
2015: 67.7%
Major Customer: Toyota 34.33%, Fuji 22.99%, Tan Chong 12.46%, Proton 3.86%, Mitsubishi 2.48%
Past Financial Proformance
2012: RM62.1 mil (EPS: RM0.03)
2013: RM66.1 mil (EPS:RM0.0561)
2014: RM99.5 mil (EPS FPE 14:RM0.0671)
2015: RM129.5 mil (EPS FPE15:RM0.0920)
After IPO Sharesholding
Datuk Teoh Hwa Cheng (founder) & Datin Sam Yin Thing : 45.58% (under MRZ)
Director Salary (2016)
Dato' Mohamed Suffian : 50K-100K
Datuk Toeh Hwa Cheng: 550K-600K
Datin Sam Yin Thing : 200K-250K
Tan jin Sun : 350k-400k
Sam Chee Keng : 300k-350k
Dato' Dr Norraesah : 50k-100k
Leong Kam Weng : 50k-100k
***summary salary from Revenue: 1.19%-1.31% (FYE 2015)
Use of fund
Working Capital: 39.74% (Normal)
Repayment debt: 25.20% (Bad)
Puchase machineries: 11.12% (Good)
Contruction add production floor: 7.37% (Good)
Open Retail Outlet: 5.52% (Good)
Establisment business at Thailand: 2.21% (Good)
Expansion of PAviation's business: 1.47% (Good)
Listing Expenses: 7.37% (Normal)
Conclusion
Good thing is:
1. Cash is more than debt after IPO (nett cash company), & debt ratio is low.
2. Founder still is the director of Pecca & now he only 48 years old.
3. Revenue increase every year since 2012 & EPS as well.
4. Largest market shares in Malaysia.
The bad things:
1. PE15.43 consider not expensive not cheap.
2. 25.2% IPO fund use to pay debt.
3. Director fee around 1% from total revenue (expensive).
Conclusions
Overall, it is good company. With the PE15.43 is not expensive but also not cheap, but after add in the potential of growing of business it should be more valuable in future.
Price at RM1.42 should be fair.
Good timing: RM1.64 (add 15%, PE17.8)
Bad timing: RM1.065 (discount 25%, PE11.57)
Tuesday, March 29, 2016
Friday, March 4, 2016
Bison Consolidated Berhad
IPO (Rating 3.0 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/03/16
Close to apply: 14/03/16
Listing date: 29/03/16
Fundamental
Market: Main Market
Price: RM1.10 (par value:RM0.20)
EPS: RM0.0589
P/E: 18.67x (SEM 7-eleven PE30.48)
Cash & fixed deposit after IPO: RM0.33 per shares (RM38.324 mil, mil shares)
NA after IPO: RM0.44
Debt ratio: 0.442 (Debt: RM43.95 mil, Asset: RM137.731 mil)
Dividend policy: no formal dividend
IPO Price
***Public/Retail IPO price is RM1.10, however if institutional IPO price is lesser than retail price, it will refund the difference to retail.
Business (Investment Holding)
Press & Convenience Retailing
-myNEWS.com, newplus, MAGBIT, THE FRONT PAGE, WHSmith.
Main Revenue
Mainly in Malaysia.
Revenue Segment
Tobacco: 35.1%
Food & beverage: 37.2%
Print media: 9.6%
Non-food: 4.8%
Consumer Service:1.4%
Advertising: 8.5%
Sale of related companies: 0.9%
Past Financial Proformance
2013: RM157.9 mil (EPS:RM0.0778)
2014: RM182.4 mil (EPS:RM0.0542)
2015: RM217.5 mil (EPS:RM0.0589)
After IPO Sharesholding
DANG TAI WEN, DANG TAI HOCK, DANG TAI LUK: 68.8%
Director Salary (2016)
DTL: 500K-550K (Revenue: 0.25%, PAT: 4%)
DTW: 450K-500K (Revenue: 0.22%, PAT: 3.7%)
DTH: 200K-250K (Revenue: 0.11%, PAT: 1.85%)
Use of fund
Capital Expenditure: 56.4%
Working Capital: 36.3%
Listing Expenses: 7.3%
Conclusion
Good thing is:
1. No IPO use to pay debt, all IPO fund use to it business.
2. Founder still as the major sharesholder (DTL).
3. Debt ratio is in healthy level.
4. Competitor PE30 (7-Eleven, SEM), Malaysia country PE15.5
5. Revenue is increase over the 3 years, however EPS growth rate is slowing down.
The bad things:
1. PE18 is consider high PE, however compare to its competitor 7-eleven (SEM), Bison is more attractive.
2. Having 35.1% revenue come from tobacco (tobacco in Malaysia is always be more expensive over the time).
3. NTA is only 40% from the IPO price.
Conclusions
Overall, this is consider a bit expensive company on the company IPO price. Fair value should be RM0.91
over the years, it main business myNEWS.com have growth fast in major city, & it will expected to slow down. If take consideration on future growth of the company, PE18 consider fair (as smart investor, we should always buy company that undervalued, but not just fair).
Price at PE15.5x : RM0.91
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/03/16
Close to apply: 14/03/16
Listing date: 29/03/16
Fundamental
Market: Main Market
Price: RM1.10 (par value:RM0.20)
EPS: RM0.0589
P/E: 18.67x (SEM 7-eleven PE30.48)
Cash & fixed deposit after IPO: RM0.33 per shares (RM38.324 mil, mil shares)
NA after IPO: RM0.44
Debt ratio: 0.442 (Debt: RM43.95 mil, Asset: RM137.731 mil)
Dividend policy: no formal dividend
IPO Price
***Public/Retail IPO price is RM1.10, however if institutional IPO price is lesser than retail price, it will refund the difference to retail.
Business (Investment Holding)
Press & Convenience Retailing
-myNEWS.com, newplus, MAGBIT, THE FRONT PAGE, WHSmith.
Main Revenue
Mainly in Malaysia.
Revenue Segment
Tobacco: 35.1%
Food & beverage: 37.2%
Print media: 9.6%
Non-food: 4.8%
Consumer Service:1.4%
Advertising: 8.5%
Sale of related companies: 0.9%
Past Financial Proformance
2013: RM157.9 mil (EPS:RM0.0778)
2014: RM182.4 mil (EPS:RM0.0542)
2015: RM217.5 mil (EPS:RM0.0589)
After IPO Sharesholding
DANG TAI WEN, DANG TAI HOCK, DANG TAI LUK: 68.8%
Director Salary (2016)
DTL: 500K-550K (Revenue: 0.25%, PAT: 4%)
DTW: 450K-500K (Revenue: 0.22%, PAT: 3.7%)
DTH: 200K-250K (Revenue: 0.11%, PAT: 1.85%)
Use of fund
Capital Expenditure: 56.4%
Working Capital: 36.3%
Listing Expenses: 7.3%
Conclusion
Good thing is:
1. No IPO use to pay debt, all IPO fund use to it business.
2. Founder still as the major sharesholder (DTL).
3. Debt ratio is in healthy level.
4. Competitor PE30 (7-Eleven, SEM), Malaysia country PE15.5
5. Revenue is increase over the 3 years, however EPS growth rate is slowing down.
The bad things:
1. PE18 is consider high PE, however compare to its competitor 7-eleven (SEM), Bison is more attractive.
2. Having 35.1% revenue come from tobacco (tobacco in Malaysia is always be more expensive over the time).
3. NTA is only 40% from the IPO price.
Conclusions
Overall, this is consider a bit expensive company on the company IPO price. Fair value should be RM0.91
over the years, it main business myNEWS.com have growth fast in major city, & it will expected to slow down. If take consideration on future growth of the company, PE18 consider fair (as smart investor, we should always buy company that undervalued, but not just fair).
Price at PE15.5x : RM0.91
Wednesday, February 17, 2016
CHIN HIN BERHAD
IPO (Rating 3.5 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 18/02/16
Close to apply: 25/02/16
Listing date: 08/03/16
Fundamental
Market: Main Market
Price: RM0.65
EPS: RM0.0395 (at 31/08/2015)
P/E: 10.96x
Cash & fixed deposit after IPO: RM0.33 per shares (RM171.543 mil, 505mil shares)
NA after IPO: RM0.57
Debt ratio: 0.6677 (Debt: RM579.092 mil, Asset: RM867.177 mil)
Dividend policy: no formal dividend
Business (Distribution & Manufacturing)
Distribution: Supplier of Building Materials, Mixed Conrete, Bricks & others.
Manufacturing: Wire Mesh, AAC blocks, jacking pipes, & others.
Main Revenue
Mainly in Malaysia.
Past Financial Proformance
2011: RM1.014 bil (EPS:RM0.0378)
2012: RM1.046 bil (EPS:RM0.0684)
2013: RM1.220 bil (EPS:RM0.0582)
2014: RM1.219 bil (EPS:RM0.0597)
2015: RM0.816 bil (EPS:RM0.0395, ***As until 31/08/2015)
After IPO Sharesholding
Chiau Beng Teik, Chiau Haw Choon, Wong Mee Leng (3 of them use Divine Invention to hold Chin Hin shares) : indirect holding 60%
Director Salary (2016)
***For estimation only for full year revenue to calculate director salary, Revenue 2015 estimate RM1.225 bil, Profit after tax 2015 Rm30mil)
Datuk Chiau Beng Teik: RM150k-200k (Revenue:0.00016%, PAT: 0.0067%)
Chiau Haw Choon: RM1.15mil-1.2mil (R:0.00098%, PAT:4%)
Lee hai Peng: RM500k-550k (R:0.00045%, PAT:0.0183%)
Datuk Dr Nik Norzul Thani: RM100-150k (R:0.00012%, PAT:0.005%)
Yeoh chin Hoe: RM0-50k (R: 0.00004%, PAT:0.00013%)
Datuk Cheng Lai Hock: RM0-50k (R: 0.00004%, PAT:0.00013%)
Use of fund
Purchase new plant, equipment & machineries: 36.5%
Pay Debt: 36.5%
Working Capital: 17.2%
Listing Expenses: 9.8%
Conclusion
Good thing is:
1. Director hold 60% of the company shares & director is the founder of the company.
2. After IPO cash in hand is RM0.33
3. Debt ratio still in healhty level, PE is 10.96x, & NA after IPO 0.57 near to IPO price 0.65.
4. Listing in main board.
The bad things:
1. 36.5% IPO fund use to pay debt.
2. Slow down of property, might slow down the company business.
3. Income mainly from Malaysia (have some income from Singapore & Hong Kong, but not much).
4. EPS from 2011-2015 is stable now without good improvement (slow down from 2013-2015, might because of slow down in property industry).
Conclusions
Overall, this is not a expensive company, since our country PE is 15.6x, & in the enviroment of property slow down in 2015 still able to mainatin PE10.96x, which is good.
One sad point is using IPO fund to pay debt.
Price at PE15.6x : RM0.92
Discount 20%-25% to PE15.6x: RM0.0.69-RM0.74 (do not buy any price above this level)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 18/02/16
Close to apply: 25/02/16
Listing date: 08/03/16
Fundamental
Market: Main Market
Price: RM0.65
EPS: RM0.0395 (at 31/08/2015)
P/E: 10.96x
Cash & fixed deposit after IPO: RM0.33 per shares (RM171.543 mil, 505mil shares)
NA after IPO: RM0.57
Debt ratio: 0.6677 (Debt: RM579.092 mil, Asset: RM867.177 mil)
Dividend policy: no formal dividend
Business (Distribution & Manufacturing)
Distribution: Supplier of Building Materials, Mixed Conrete, Bricks & others.
Manufacturing: Wire Mesh, AAC blocks, jacking pipes, & others.
Main Revenue
Mainly in Malaysia.
Past Financial Proformance
2011: RM1.014 bil (EPS:RM0.0378)
2012: RM1.046 bil (EPS:RM0.0684)
2013: RM1.220 bil (EPS:RM0.0582)
2014: RM1.219 bil (EPS:RM0.0597)
2015: RM0.816 bil (EPS:RM0.0395, ***As until 31/08/2015)
After IPO Sharesholding
Chiau Beng Teik, Chiau Haw Choon, Wong Mee Leng (3 of them use Divine Invention to hold Chin Hin shares) : indirect holding 60%
Director Salary (2016)
***For estimation only for full year revenue to calculate director salary, Revenue 2015 estimate RM1.225 bil, Profit after tax 2015 Rm30mil)
Datuk Chiau Beng Teik: RM150k-200k (Revenue:0.00016%, PAT: 0.0067%)
Chiau Haw Choon: RM1.15mil-1.2mil (R:0.00098%, PAT:4%)
Lee hai Peng: RM500k-550k (R:0.00045%, PAT:0.0183%)
Datuk Dr Nik Norzul Thani: RM100-150k (R:0.00012%, PAT:0.005%)
Yeoh chin Hoe: RM0-50k (R: 0.00004%, PAT:0.00013%)
Datuk Cheng Lai Hock: RM0-50k (R: 0.00004%, PAT:0.00013%)
Use of fund
Purchase new plant, equipment & machineries: 36.5%
Pay Debt: 36.5%
Working Capital: 17.2%
Listing Expenses: 9.8%
Conclusion
Good thing is:
1. Director hold 60% of the company shares & director is the founder of the company.
2. After IPO cash in hand is RM0.33
3. Debt ratio still in healhty level, PE is 10.96x, & NA after IPO 0.57 near to IPO price 0.65.
4. Listing in main board.
The bad things:
1. 36.5% IPO fund use to pay debt.
2. Slow down of property, might slow down the company business.
3. Income mainly from Malaysia (have some income from Singapore & Hong Kong, but not much).
4. EPS from 2011-2015 is stable now without good improvement (slow down from 2013-2015, might because of slow down in property industry).
Conclusions
Overall, this is not a expensive company, since our country PE is 15.6x, & in the enviroment of property slow down in 2015 still able to mainatin PE10.96x, which is good.
One sad point is using IPO fund to pay debt.
Price at PE15.6x : RM0.92
Discount 20%-25% to PE15.6x: RM0.0.69-RM0.74 (do not buy any price above this level)
Monday, January 4, 2016
RANHILL HOLDING BERHAD
IPO (Rating 2 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 31/12/15
Close to apply: 29/01/16
Listing date: 18/02/16
Fundamental
Market: Main Market
Price: RM1.70 (RM1.70 is retail price, if later institutional price less than retail price, bal will refund)
EPS: RM0.10
P/E: 17X
NA after IPO: RM0.85
Debt ratio: 0.753 (Debt: RM3.071 bil, Asset: RM4.077 bil)
Dividend policy: 70% dividend if company profitable
Business (Power & Water)
Power generation, water supply services (operate water & wastewater treatment, water utility assets)
Main Revenue
Power:22.7%
Environment: 77.3%
Past Financial Proformance
2012: RM1.158 bil (EPS:RM0.10)
2013: RM1.199 bil (EPS:RM0.09)
2014: RM1.294 bil (EPS:RM0.10)
2015 (6 mth): RM0.628 bil (EPS:RM0.05)
After IPO Sharesholding
Tan Sri Hamdan: 31.6%
Tan Sri Azman: 5%
Use of fund
Repayment of RPI's outstanding : 34.51%
Repayment of Sukuk: 15.69%
Settlement of RWT (cayman) Acquisition: 19.61%
Working Capital: 18.43%
Investment into RWT (Cayman) water business in China: 11.76%
Conclusion
Good thing is:
1. 77.3% of the comapany income come from enviroment (water section), which is less sensitive to raw material cost. This will provide partial stable income to the company.
2. Debt ratio still consider healthy. Not more than their assets.
3. The concept of the company business is to provide a recession prove income (utilities).
4. After the IPO, Tan Sri Hamdam still holding 31.6% of the company shares.
The bad things:
1. 69.81% is repayment of outstanding (in other similar meaning is debt).
2. The PE17 is consider high, because our country PE is only PE16.
Conclusions
IPO to pay debt is always not a good thing for investor. Try to AVOID is IPO. However, if the IPO able to drop until PE13 (RM1.30) we can consider to buy some to invest, who's know one day might become like tenaga.
The IPO price RM1.70 is consider very expensive, because we don't want our money to help them pay debt. RM1.30 is just fair.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 31/12/15
Close to apply: 29/01/16
Listing date: 18/02/16
Fundamental
Market: Main Market
Price: RM1.70 (RM1.70 is retail price, if later institutional price less than retail price, bal will refund)
EPS: RM0.10
P/E: 17X
NA after IPO: RM0.85
Debt ratio: 0.753 (Debt: RM3.071 bil, Asset: RM4.077 bil)
Dividend policy: 70% dividend if company profitable
Business (Power & Water)
Power generation, water supply services (operate water & wastewater treatment, water utility assets)
Main Revenue
Power:22.7%
Environment: 77.3%
Past Financial Proformance
2012: RM1.158 bil (EPS:RM0.10)
2013: RM1.199 bil (EPS:RM0.09)
2014: RM1.294 bil (EPS:RM0.10)
2015 (6 mth): RM0.628 bil (EPS:RM0.05)
After IPO Sharesholding
Tan Sri Hamdan: 31.6%
Tan Sri Azman: 5%
Use of fund
Repayment of RPI's outstanding : 34.51%
Repayment of Sukuk: 15.69%
Settlement of RWT (cayman) Acquisition: 19.61%
Working Capital: 18.43%
Investment into RWT (Cayman) water business in China: 11.76%
Conclusion
Good thing is:
1. 77.3% of the comapany income come from enviroment (water section), which is less sensitive to raw material cost. This will provide partial stable income to the company.
2. Debt ratio still consider healthy. Not more than their assets.
3. The concept of the company business is to provide a recession prove income (utilities).
4. After the IPO, Tan Sri Hamdam still holding 31.6% of the company shares.
The bad things:
1. 69.81% is repayment of outstanding (in other similar meaning is debt).
2. The PE17 is consider high, because our country PE is only PE16.
Conclusions
IPO to pay debt is always not a good thing for investor. Try to AVOID is IPO. However, if the IPO able to drop until PE13 (RM1.30) we can consider to buy some to invest, who's know one day might become like tenaga.
The IPO price RM1.70 is consider very expensive, because we don't want our money to help them pay debt. RM1.30 is just fair.
Thursday, November 19, 2015
RED SENA BERHAD
IPO (Rating 2 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 18/11/15
Close to apply: 27/11/15
Listing date: 10/12/15
The counter
1 successful subscribed free 1 warrant
Fundamental
Market: Main Market
Price: RM0.50
EPS: -
P/E: -
Dividend policy: no dividend (Until finish acquisition)
Business
F&B business (brading & marketing, Manufacturing, Wholesale distribution)
Target Acquisition Market
Thailand, Vietnam, Philippines, Malaysia, Singapore, Indonesia.
After IPO Sharesholding
Raintree: 20%
IPO Investor: 80%
Director
Tunku Dato' Mu'Tamir: Chicken Rice Shop, Ayam Brand, Mafipro...
Dato' Tan And Meng: previous F&N CEO, Creador Senior Advisor...
Tan Eng Guan: Tchong motor(22 yrs), F&N...
Mohd. Shah Bin Hashim: Nestle legar manager...
Ng Ing Peng: CIMB group (director financial department, 12yrs)
Use of fund
Qualifying Acquisition (36 mth): 89.76%
Working Capital (36mth): 3.82%
Listing Expenses (30days): 3.99%
Remuneration of management team (36mth): 2.43%
Value Per Shares
No of shares: 1bil
IPO & Raintree fund: RM410 mil
Value per share before aquasition: RM0.39
Value per Warrant
Warrant exercise price: RM0.50
**warrant will be is premium (out-of-cash), if shares price below RM0.50
**warrant will be in-cash, if shares price above RM0.50
Conclusion
Good thing is:
1. F&B is a stable industry & safe haven at economic crisis.
2. Creador (Brahmal Vasudevan) invest in Red Sena. Creador is a private fund that having good record in investment (e.g. previous record is invets in IFCaMSC, GHLsys...before the counter move).
The bad things:
1. Is a SPAC counter, no fundamental can be measure.
2. Heavily depend on the exprience of director to get the acquisition.
Conclusions
Is a good high risk counter. But I believe price can be lower than IPO price. SPAC acquisition is impossible to complete in one or two day. Because is a risky counter, try not to hold warrant. Buy only the mother shares.
If success to take the IPO, sell the warrant at morning market open. If you not able to get the IPO, try buy at below RM0.50 ( the share come with warrant, high possibility price will below RM0.50 because of dillution of warrant).
***I see opportunities on this counter, but risk is high. Buy with cash that you willing to lose.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 18/11/15
Close to apply: 27/11/15
Listing date: 10/12/15
The counter
1 successful subscribed free 1 warrant
Fundamental
Market: Main Market
Price: RM0.50
EPS: -
P/E: -
Dividend policy: no dividend (Until finish acquisition)
Business
F&B business (brading & marketing, Manufacturing, Wholesale distribution)
Target Acquisition Market
Thailand, Vietnam, Philippines, Malaysia, Singapore, Indonesia.
After IPO Sharesholding
Raintree: 20%
IPO Investor: 80%
Director
Tunku Dato' Mu'Tamir: Chicken Rice Shop, Ayam Brand, Mafipro...
Dato' Tan And Meng: previous F&N CEO, Creador Senior Advisor...
Tan Eng Guan: Tchong motor(22 yrs), F&N...
Mohd. Shah Bin Hashim: Nestle legar manager...
Ng Ing Peng: CIMB group (director financial department, 12yrs)
Use of fund
Qualifying Acquisition (36 mth): 89.76%
Working Capital (36mth): 3.82%
Listing Expenses (30days): 3.99%
Remuneration of management team (36mth): 2.43%
Value Per Shares
No of shares: 1bil
IPO & Raintree fund: RM410 mil
Value per share before aquasition: RM0.39
Value per Warrant
Warrant exercise price: RM0.50
**warrant will be is premium (out-of-cash), if shares price below RM0.50
**warrant will be in-cash, if shares price above RM0.50
Conclusion
Good thing is:
1. F&B is a stable industry & safe haven at economic crisis.
2. Creador (Brahmal Vasudevan) invest in Red Sena. Creador is a private fund that having good record in investment (e.g. previous record is invets in IFCaMSC, GHLsys...before the counter move).
The bad things:
1. Is a SPAC counter, no fundamental can be measure.
2. Heavily depend on the exprience of director to get the acquisition.
Conclusions
Is a good high risk counter. But I believe price can be lower than IPO price. SPAC acquisition is impossible to complete in one or two day. Because is a risky counter, try not to hold warrant. Buy only the mother shares.
If success to take the IPO, sell the warrant at morning market open. If you not able to get the IPO, try buy at below RM0.50 ( the share come with warrant, high possibility price will below RM0.50 because of dillution of warrant).
***I see opportunities on this counter, but risk is high. Buy with cash that you willing to lose.
Wednesday, October 28, 2015
KIM TECK CONSOLIDATED BERHAD
IPO (Rating 3.75 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/10/15
Close to apply: 12/11/15
Listing date: 25/11/15
Fundamental
Market: ACE Market
Price: RM0.15
EPS: RM0.0133
P/E: 11.28x
NA after IPO: RM0.14
Debt ratio: 0.595 (Debt: RM136.747 mil, Asset: RM229.921 mil)
Dividend policy: no formal dividend
Business (distribution & warehousing)
F&B products, Personal care products,household products, baby care products, OTC Drug & Health supplememnts.
Main Revenue
Sabah : 90.80%
Labuan: 4.69%
Sarawak: 4.51%
Past Financial Proformance
2012: RM200 mil (EPS:RM0.0058)
2013: RM222 mil (EPS:RM0.0173)
2014: RM229 mil (EPS:RM0.0082)
2015: RM299 mil (EPS:RM0.0105)
After IPO Sharesholding
72.17% : Datin Lim, Lindfay Lau, Benedick Lau (all hold by KTC)
Use of fund
Acquasition of Warehouse in Sibu, Miri, Kuching: 42.26%
Construction of warehouse facilities: 9.39%
Purchase of equipment for warehouse: 14.07%
Working Capital: 22.07%
Listing Expenditure: 12.21%
Conclusion
Good thing is:
1. Revenue continue growing each years.
2. P/E 11.28x still consider at good price.
3. Net asset near to IPO price NA RM0.14
4. Debt ratio still consider healthy.
5. 87.79% IPO fund use to growth the business.
6. Large portion of shares hold by KTC, showing the good confidence level on their own company.
The bad things:
1. 101 bad thing to the company is will listing under ACE market.
2. Mother company KTC holding listed as public company before, & convert back into private limited company at 06/06/2014, this make investor worry after the new IPO will privatise again. This might also the reason the IPO at small & list in ACE market.
3. No formal dividend policy, however they are suggest to pay 20% of earning to sharesholders.
Conclusions
This is what we want!! IPO with honest, use IPO fund to expand business but not pay company debt.
However, it is very sad that this company will listing in ACE market. In overall, this is a good IPO.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/10/15
Close to apply: 12/11/15
Listing date: 25/11/15
Fundamental
Market: ACE Market
Price: RM0.15
EPS: RM0.0133
P/E: 11.28x
NA after IPO: RM0.14
Debt ratio: 0.595 (Debt: RM136.747 mil, Asset: RM229.921 mil)
Dividend policy: no formal dividend
Business (distribution & warehousing)
F&B products, Personal care products,household products, baby care products, OTC Drug & Health supplememnts.
Main Revenue
Sabah : 90.80%
Labuan: 4.69%
Sarawak: 4.51%
Past Financial Proformance
2012: RM200 mil (EPS:RM0.0058)
2013: RM222 mil (EPS:RM0.0173)
2014: RM229 mil (EPS:RM0.0082)
2015: RM299 mil (EPS:RM0.0105)
After IPO Sharesholding
72.17% : Datin Lim, Lindfay Lau, Benedick Lau (all hold by KTC)
Use of fund
Acquasition of Warehouse in Sibu, Miri, Kuching: 42.26%
Construction of warehouse facilities: 9.39%
Purchase of equipment for warehouse: 14.07%
Working Capital: 22.07%
Listing Expenditure: 12.21%
Conclusion
Good thing is:
1. Revenue continue growing each years.
2. P/E 11.28x still consider at good price.
3. Net asset near to IPO price NA RM0.14
4. Debt ratio still consider healthy.
5. 87.79% IPO fund use to growth the business.
6. Large portion of shares hold by KTC, showing the good confidence level on their own company.
The bad things:
1. 101 bad thing to the company is will listing under ACE market.
2. Mother company KTC holding listed as public company before, & convert back into private limited company at 06/06/2014, this make investor worry after the new IPO will privatise again. This might also the reason the IPO at small & list in ACE market.
3. No formal dividend policy, however they are suggest to pay 20% of earning to sharesholders.
Conclusions
This is what we want!! IPO with honest, use IPO fund to expand business but not pay company debt.
However, it is very sad that this company will listing in ACE market. In overall, this is a good IPO.
Friday, September 4, 2015
AL-SALAM REAL ESTATE INVESTMENT TRUST
IPO (Rating 3 star out of 5 )
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/09/15
Close to apply: 15/09/15
Listing date: 29/09/15
Fundamental
Market: Main Market
Price: RM1.00
Distribution: RM0.0641 (2016: 99.9% rate), RM0.0181 (2015 9mth: 99.9% rate)
P/E: 32x (base on 2015 estimate), 15x (2016)
NA after IPO: RM0.98
Debt ratio: 0.377 (Debt: RM345 mil, Asset: RM916 mil) & debt policy should not more than 50% financing
Dividend policy: Min 90% from distributable income & half year basic
Asset valuation: every 3 years
Syariah Status: Yes
Business
Rental income, parking income, advertising, & others.
Main Revenue (until June 2015 in Nett)
Komtar JBCC: RM2.528 mil
Menara Komtar: RM1.75 mil
@mart Kempas: RM1.842 mil
KFCH College:RM1.097 mil
QSR Properties: RM18 mil p.a. (27 properties of KFC & Pizza hut restaurant)
Fees
Trustee's Fee: 0.02% p.a.
Management Fee: 0.25%-1%
Aquisition Fee: 1%
Divestment Fee: 0.5%
Others: -
Use of fund
Payment of Puchase: 96.24%
Listing Expenses: 3.76%
Conclusion
Good thing is:
1. IPO price (RM1.00) very near to net asset value (RM0.98).
2. REIT income focus/distribution rental, which is not a high risk counter.
3. Income from REIT in Malaysia is only tax able 10%.
4. Having Syariah status, which it will attractive to fund manager (e.g. Islamic unit trust) to purchase.
5. Debt ratio is still in healthy level 0.377.
6. Having forcase distribution income for 2016 is 6.41%
The bad things:
1. Estimated 9mth 2015 distribution income is RM10.5 mil, but in 2016 is RM37.229 mil. Sound good but already 3x times from 2015 income.
2. Having net property loss in 2014.
Overall, this is a normal IPO. 6.41% dividend yield is normal level for a REIT counter. The REIT IPO at current bad market enviroment, we might get opportunities to buy below it IPO price RM1.00 & 7% yield is around RM0.91
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 04/09/15
Close to apply: 15/09/15
Listing date: 29/09/15
Fundamental
Market: Main Market
Price: RM1.00
Distribution: RM0.0641 (2016: 99.9% rate), RM0.0181 (2015 9mth: 99.9% rate)
P/E: 32x (base on 2015 estimate), 15x (2016)
NA after IPO: RM0.98
Debt ratio: 0.377 (Debt: RM345 mil, Asset: RM916 mil) & debt policy should not more than 50% financing
Dividend policy: Min 90% from distributable income & half year basic
Asset valuation: every 3 years
Syariah Status: Yes
Business
Rental income, parking income, advertising, & others.
Main Revenue (until June 2015 in Nett)
Komtar JBCC: RM2.528 mil
Menara Komtar: RM1.75 mil
@mart Kempas: RM1.842 mil
KFCH College:RM1.097 mil
QSR Properties: RM18 mil p.a. (27 properties of KFC & Pizza hut restaurant)
Fees
Trustee's Fee: 0.02% p.a.
Management Fee: 0.25%-1%
Aquisition Fee: 1%
Divestment Fee: 0.5%
Others: -
Use of fund
Payment of Puchase: 96.24%
Listing Expenses: 3.76%
Conclusion
Good thing is:
1. IPO price (RM1.00) very near to net asset value (RM0.98).
2. REIT income focus/distribution rental, which is not a high risk counter.
3. Income from REIT in Malaysia is only tax able 10%.
4. Having Syariah status, which it will attractive to fund manager (e.g. Islamic unit trust) to purchase.
5. Debt ratio is still in healthy level 0.377.
6. Having forcase distribution income for 2016 is 6.41%
The bad things:
1. Estimated 9mth 2015 distribution income is RM10.5 mil, but in 2016 is RM37.229 mil. Sound good but already 3x times from 2015 income.
2. Having net property loss in 2014.
Overall, this is a normal IPO. 6.41% dividend yield is normal level for a REIT counter. The REIT IPO at current bad market enviroment, we might get opportunities to buy below it IPO price RM1.00 & 7% yield is around RM0.91
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