IPO (Rating 3.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/09/2016
Close to apply: 10/10/2016
Listing date: 24/10/2016
Fundamental
Market: Ace Market
Price: RM0.19 (par value:RM0.05)
EPS: RM0.0152 (9mth 2015 + 3mth 2016)
P/E: 12.5
Cash & fixed deposit after IPO: RM0.0293 per shares
NA after IPO: RM0.08
Debt ratio: 0.33 (Debt: RM16.196 mil, Asset: RM38.957 mil)
Dividend policy: Does not have any dividend policy
Core Services
Speed Queen self-service launderette, distibution of commercial laundry equitment & medical devices.
Source of Income (2015)
commercail laundry equitment: 55.6%
Medical devices: 44.4%
Past Financial Proformance (Revenue)
2012: RM19.063 mil (EPS: 0.0005)
2013: RM35.379 mil (EPS: 0.0048)
2014: RM51.027 mil (EPS: 0.0133)
2015: RM64.335 mil (EPS: 0.0145)
After IPO Sharesholding
Koh Lap Hing: 12.6%
Liaw Chong Lin: 11.9%
Lim Jit Wei: 11.2%
Chung Eng Lam: 11.9%
Hew Chun SUn: 12.6%
Director Salary (from gross profit 2015)
Datuk Chin Goo Chai: 50k-100k
Koh Lap Hing: 250k-300k
Liaw Chong Lin: 1.15mil-1.2mil
Lim Jit Wei: 1.15mil-1.2mil
Chung Eng Lam: 950k-1mil
Hew Chun SUn: 950k-1mil
Datin Latiffah binti Endot: 0-50k
Ng Kok Wah: 0-50k
***total director fee from gross profit 2015: 23.65%-25.75%
Use of fund
Set up 11 chain of self-service launderette outlets: 16.2%
Purchase of new commercial laundry equiment & medical devices: 48.1%
Working capital: 20.1%
Listing expenses: 15.6%
Conclusion
Good thing is:
1. PE still attractive, debt ratio still healthy.
2. continue revenue growth for 4 years.
3. After IPO major hold 70% of the company shares.
4. Major IPO fund use to expend business.
5. Business product (self-services laundry) is in growing stage in industry cycle for major city.
The bad things:
1. Director fee is expensive.
2. Listing expenses is expensive.
3. Their equipment is import & having weakness for USD stronger.
4. Listing in ACE market.
5. Co-founder Koh Lap Hing is 65 years old.
Conclusions
Is a good IPO, but just not good enough. Main consideration we have to take note is the director fee is too expensive & is not fair to investor in this section.
IPO Price at RM0.19
Good time : RM0.23 (PE15)
Bad time : RM0.13 (PE9)
Wednesday, September 28, 2016
Friday, September 16, 2016
Perak Transit Berhad
IPO (Rating 3.0 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 15/09/2016
Close to apply: 23/09/2016
Listing date: 06/10/2016
Fundamental
Market: Ace Market
Price: RM0.15 (par value:RM0.10)
EPS: RM0.00471 for 4 months (net RM0.006 in prospectus if before new shares to public issue)
P/E: 10.61
Cash & fixed deposit after IPO: RM0.0168 per shares
NA after IPO: RM0.16
Debt ratio: 0.41 (Debt: 127.027 RM mil, Asset: RM 309.743 mil)
Dividend policy: up to 25% of net profits
Core Services
Operate bus Terminal Amanjaya, public bus services, & several petrol stations.
Source of Income (2015)
Rental: 23.54%
Kiosks: 2.4%
Fee: 13.04%
others: 0.88%
Bus operation: 29.16%
Petro station & ADO incentive: 30.98%
Past Financial Proformance (Revenue)
2013: RM64.394 mil (EPS:0.008)
2014: RM77.578 mil (0.015)
2015: RM74.123 mil (0.0214)
FPE 2015: RM22.699 mil (0.0075, for 4 mths)
FPE 2016: RM25.443 mil (0.006, for 4 mths)
After IPO Sharesholding
Dato'Sri Cheong Kong Fitt: 23.16%
Datin Sri Lim Sow Keng: 32.22%
Director Salary (from gross profit 2015)
Chang Ko Youn: 36k-100k
Cheong Kong Fitt: 350k-380k
Cheong Peak Sooi: 280-330
Wan Asmadi Bin Wan Ahmad: 36k-100k
Mohd Annas Bin Md Isa: 36k-100k
Ng Wai Luen: 36k-100k
***total director fee from gross profit 2015: 2.3%-3.37%
Use of fund
Business Expansion: 54.42% (to build terminal Kampar)
Repayment of hire purchase facilities: 5.74%
Working capital: 28.52%
Listing expenses: 11.32%
Conclusion
Good thing is:
1. Founder Cheong Kong Fitt still as director after IPO.
2. PE still attractive.
3. Debt ratio sill healthy.
4. Director fee is on market standard.
5. Public transport will always get support by gov.
The bad things:
1. ACE market counter
2. 2015 Revenue is drop.
3. Compertitor had increase the quality of services (KTMB- ETS tran)
4. Drop in diesel price 2015, but revenue is drop.
5. New car price is getting lower.
Conclusions
Price is attractive but is a risky choice for long term investment.
IPO Price at RM0.15
Good time : RM0.21 (PE15)
Bad time : RM0.09 (PE7)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 15/09/2016
Close to apply: 23/09/2016
Listing date: 06/10/2016
Fundamental
Market: Ace Market
Price: RM0.15 (par value:RM0.10)
EPS: RM0.00471 for 4 months (net RM0.006 in prospectus if before new shares to public issue)
P/E: 10.61
Cash & fixed deposit after IPO: RM0.0168 per shares
NA after IPO: RM0.16
Debt ratio: 0.41 (Debt: 127.027 RM mil, Asset: RM 309.743 mil)
Dividend policy: up to 25% of net profits
Core Services
Operate bus Terminal Amanjaya, public bus services, & several petrol stations.
Source of Income (2015)
Rental: 23.54%
Kiosks: 2.4%
Fee: 13.04%
others: 0.88%
Bus operation: 29.16%
Petro station & ADO incentive: 30.98%
Past Financial Proformance (Revenue)
2013: RM64.394 mil (EPS:0.008)
2014: RM77.578 mil (0.015)
2015: RM74.123 mil (0.0214)
FPE 2015: RM22.699 mil (0.0075, for 4 mths)
FPE 2016: RM25.443 mil (0.006, for 4 mths)
After IPO Sharesholding
Dato'Sri Cheong Kong Fitt: 23.16%
Datin Sri Lim Sow Keng: 32.22%
Director Salary (from gross profit 2015)
Chang Ko Youn: 36k-100k
Cheong Kong Fitt: 350k-380k
Cheong Peak Sooi: 280-330
Wan Asmadi Bin Wan Ahmad: 36k-100k
Mohd Annas Bin Md Isa: 36k-100k
Ng Wai Luen: 36k-100k
***total director fee from gross profit 2015: 2.3%-3.37%
Use of fund
Business Expansion: 54.42% (to build terminal Kampar)
Repayment of hire purchase facilities: 5.74%
Working capital: 28.52%
Listing expenses: 11.32%
Conclusion
Good thing is:
1. Founder Cheong Kong Fitt still as director after IPO.
2. PE still attractive.
3. Debt ratio sill healthy.
4. Director fee is on market standard.
5. Public transport will always get support by gov.
The bad things:
1. ACE market counter
2. 2015 Revenue is drop.
3. Compertitor had increase the quality of services (KTMB- ETS tran)
4. Drop in diesel price 2015, but revenue is drop.
5. New car price is getting lower.
Conclusions
Price is attractive but is a risky choice for long term investment.
IPO Price at RM0.15
Good time : RM0.21 (PE15)
Bad time : RM0.09 (PE7)
Wednesday, June 29, 2016
HSS Engineers Berhad
IPO (Rating 2.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/06/2016
Close to apply: 22/07/2016
Listing date: 10/08/2016
Fundamental
Market: Ace Market
Price: RM0.50 (par value:RM0.10)
EPS: RM0.0317
P/E: 15.77
Cash & fixed deposit after IPO: RM0.58 per shares (Cash RM 37.033 mil, Debt RM 37.362 mil)
NA after IPO: RM0.20
Debt ratio: 0.37 (Debt: 37.362 RM mil, Asset: RM 102.010 mil)
Dividend policy: Interim & final dividend basic.
Core Services
Engineering Design:38.1%
Contruction supervision: 35.1%
Project Management: 23.5%
BIM services: 3.3%
Market Discipline
Railway & Transit: 57%
Highway: 18%
Building & township: 12%
Port: 7%
Property: 3%
Mechinical & Engineering: 2%
Power & water: 1%
Sources of Project Funding
Gov: 71%
Private Developer: 3%
PFI/PPP/BOT: 26%
Major Customer
Prasarana Msia Bhd: 29%
Mass Rapid: 22%
Unit Perancang Ekonomi Negeri Penang: 7.7%
PLUS Berhad: 4.5%
Wesrports: 4.0%
Geographical Market (2015)
Malaysia: 97.5%
India, Brunie, Middle East: 2.5%
Past Financial Proformance (Revenue)
2013: RM101.449 mil (EPS:0.021)
2014: RM104.575 mil (0.0286)
2015: RM121.503 mil (0.0317)
Unbilled order book: RM365.9 mil (2-5 years)
After IPO Sharesholding
Datuk Ir.Kunasingam: 31.3%
Vanessa A/P Santhakumar: 31.3%
Director Salary (from gross profit 2015)
Dato' Mohd Zakhir Siddiqy: RM50,001 - RM100k
Datuk Ir. Kunasingam: RM2 mil - RM2.05 mil
Dato' Ir. Nitchiananthan: RM1.115 mil - RM1.2 mil
Dato' Ir. Khairudin: RM50,001 - RM100k
Mohan A/L Ramalingam: RM50,001 - RM100k
Foo lee Khean: RM50,001 - RM100k
Ir.Sharifah Azlina: RM700k - RM750k
***summary total directors salary from gross profit & other income: 9.94% - 10.8%
Use of fund
Expansion: 75.2% (into India 47%)
Repay Debt: 12.6%
Working Capital: 2.2%
Listing expenses: 10.0%
Conclusion
Good thing is:
1. Co-founder still with the company (Datuk Ir.Kunasingam)
2. Expand into India (reduce too depend on M'sia gov for project)
3. Debt ratio still healthy.
4. Over 3 year revenue increasing.
The bad things:
1. PE15.77 is consider just Fair.
2. Business too depend on Gov.
3. Listing in ACE market (less regulated, & less strict to listing compare to main board)
4. 12.6% use to pay debt.
5. Director fee is expensive.
Conclusions
Overall is a normal IPO. Price is at fair value. Is good effort to the company expend into India to reduce over depend on local gov project.
For fist day IPO, it might have opportunities to make profit.
IPO Price at RM0.50
Good time : RM0.57 (PE18)
Bad time : RM0.32 (PE10)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 29/06/2016
Close to apply: 22/07/2016
Listing date: 10/08/2016
Fundamental
Market: Ace Market
Price: RM0.50 (par value:RM0.10)
EPS: RM0.0317
P/E: 15.77
Cash & fixed deposit after IPO: RM0.58 per shares (Cash RM 37.033 mil, Debt RM 37.362 mil)
NA after IPO: RM0.20
Debt ratio: 0.37 (Debt: 37.362 RM mil, Asset: RM 102.010 mil)
Dividend policy: Interim & final dividend basic.
Core Services
Engineering Design:38.1%
Contruction supervision: 35.1%
Project Management: 23.5%
BIM services: 3.3%
Market Discipline
Railway & Transit: 57%
Highway: 18%
Building & township: 12%
Port: 7%
Property: 3%
Mechinical & Engineering: 2%
Power & water: 1%
Sources of Project Funding
Gov: 71%
Private Developer: 3%
PFI/PPP/BOT: 26%
Major Customer
Prasarana Msia Bhd: 29%
Mass Rapid: 22%
Unit Perancang Ekonomi Negeri Penang: 7.7%
PLUS Berhad: 4.5%
Wesrports: 4.0%
Geographical Market (2015)
Malaysia: 97.5%
India, Brunie, Middle East: 2.5%
Past Financial Proformance (Revenue)
2013: RM101.449 mil (EPS:0.021)
2014: RM104.575 mil (0.0286)
2015: RM121.503 mil (0.0317)
Unbilled order book: RM365.9 mil (2-5 years)
After IPO Sharesholding
Datuk Ir.Kunasingam: 31.3%
Vanessa A/P Santhakumar: 31.3%
Director Salary (from gross profit 2015)
Dato' Mohd Zakhir Siddiqy: RM50,001 - RM100k
Datuk Ir. Kunasingam: RM2 mil - RM2.05 mil
Dato' Ir. Nitchiananthan: RM1.115 mil - RM1.2 mil
Dato' Ir. Khairudin: RM50,001 - RM100k
Mohan A/L Ramalingam: RM50,001 - RM100k
Foo lee Khean: RM50,001 - RM100k
Ir.Sharifah Azlina: RM700k - RM750k
***summary total directors salary from gross profit & other income: 9.94% - 10.8%
Use of fund
Expansion: 75.2% (into India 47%)
Repay Debt: 12.6%
Working Capital: 2.2%
Listing expenses: 10.0%
Conclusion
Good thing is:
1. Co-founder still with the company (Datuk Ir.Kunasingam)
2. Expand into India (reduce too depend on M'sia gov for project)
3. Debt ratio still healthy.
4. Over 3 year revenue increasing.
The bad things:
1. PE15.77 is consider just Fair.
2. Business too depend on Gov.
3. Listing in ACE market (less regulated, & less strict to listing compare to main board)
4. 12.6% use to pay debt.
5. Director fee is expensive.
Conclusions
Overall is a normal IPO. Price is at fair value. Is good effort to the company expend into India to reduce over depend on local gov project.
For fist day IPO, it might have opportunities to make profit.
IPO Price at RM0.50
Good time : RM0.57 (PE18)
Bad time : RM0.32 (PE10)
Thursday, June 23, 2016
Dancomech Holdings Berhad
IPO (Rating 2.50 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 23/06/2016
Close to apply: 12/07/2016
Listing date: 21/07/2016
Fundamental
Market: Main Market
Price: RM0.75 (par value:RM0.40)
EPS: RM0.09 (2015)
P/E: 8.33
Cash & fixed deposit after IPO: RM0.218 per shares (Cash RM32.548 mil, Debt RM19.259 mil)
NA after IPO: RM0.61
Debt ratio: 0.175 (Debt: RM19.259 mil, Asset: RM109.999 mil)
Dividend policy: 30% of annual net profit (not fixed)
Business
Trading & distribution of third party brands & own brands of PCE, MPTE, measurement intrusment of water & sewrage industry.
Major Customer & Supplier
Major Cutomers: KNM (5.73%), Desmet Ballaestra (9.49%)
Majot Supplier: Neway Valve (12.99%), Laser GmbH % Co. (10.43%), British Rototherm (10.34%)
Main Revenue
Palm Oil & Oleochemicals: 59.13%
Oil & Gas, and Petrochemicals: 13.7%
Water Treastment & sewerage: 4.97%
Others: 22.2%
Geographical Market
Malaysia: 78.86%
Indonesia: 19.71%
Others: 1.43%
Past Financial Proformance (Revenue)
2012: 65.566 mil
2013: 83.190 mil
2014: 79.001 mil
2015: 68.253 mil
After IPO Sharesholding
Aik Swee Tong & Aik Cwo Shing (both through ABC equity): 41.57%
Aik family: 18.33%
Director Salary (2016)
Datuk Zainal Abidin Bin Ujud: Up to RM50k
Aik Swee Tong : RM600k - RM650k
Aik Cwo Shing: RM650k - RM700k
Gonf wooi Teik: up to RM50k
Marzuki bin Abd Rahman: up to RM50k
Lee Chen Yow: up to RM50k
Sharon Lee Ching Yee: up to RM50k
***summary total directors salary from gross profit & other income: 5.30% - 6.78%
Use of fund
Pay Debt: RM4.557 mil (25.32%)
Purchase of office cum store: RM6.5 mil (36.11%)
Purchase of equipment: RM1 mill (5.55%)
Working Capital: RM2.743 mil (15.24%)
Listing Expenses: RM3.2 mil (17.78%)
Conclusion
Good thing is:
1. PE is 8.33
2. Debt ratio is healthy.
3. Co-founder still manage the company.
4. Product is niche market.
5. IPO price is near to net asset.
The bad things:
1. Lisitng Expenses is too expensive.
2. 25.32% is use to pay debt.
3. Revenue past 3 years continue to drop.
4. Direcetor fee is expensive.
Conclusions
Overall is only an average company.
IPO Price at RM0.75
Good time : RM1.08 (PE12)
Bad time : RM0.54 (PE6)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 23/06/2016
Close to apply: 12/07/2016
Listing date: 21/07/2016
Fundamental
Market: Main Market
Price: RM0.75 (par value:RM0.40)
EPS: RM0.09 (2015)
P/E: 8.33
Cash & fixed deposit after IPO: RM0.218 per shares (Cash RM32.548 mil, Debt RM19.259 mil)
NA after IPO: RM0.61
Debt ratio: 0.175 (Debt: RM19.259 mil, Asset: RM109.999 mil)
Dividend policy: 30% of annual net profit (not fixed)
Business
Trading & distribution of third party brands & own brands of PCE, MPTE, measurement intrusment of water & sewrage industry.
Major Customer & Supplier
Major Cutomers: KNM (5.73%), Desmet Ballaestra (9.49%)
Majot Supplier: Neway Valve (12.99%), Laser GmbH % Co. (10.43%), British Rototherm (10.34%)
Main Revenue
Palm Oil & Oleochemicals: 59.13%
Oil & Gas, and Petrochemicals: 13.7%
Water Treastment & sewerage: 4.97%
Others: 22.2%
Geographical Market
Malaysia: 78.86%
Indonesia: 19.71%
Others: 1.43%
Past Financial Proformance (Revenue)
2012: 65.566 mil
2013: 83.190 mil
2014: 79.001 mil
2015: 68.253 mil
After IPO Sharesholding
Aik Swee Tong & Aik Cwo Shing (both through ABC equity): 41.57%
Aik family: 18.33%
Director Salary (2016)
Datuk Zainal Abidin Bin Ujud: Up to RM50k
Aik Swee Tong : RM600k - RM650k
Aik Cwo Shing: RM650k - RM700k
Gonf wooi Teik: up to RM50k
Marzuki bin Abd Rahman: up to RM50k
Lee Chen Yow: up to RM50k
Sharon Lee Ching Yee: up to RM50k
***summary total directors salary from gross profit & other income: 5.30% - 6.78%
Use of fund
Pay Debt: RM4.557 mil (25.32%)
Purchase of office cum store: RM6.5 mil (36.11%)
Purchase of equipment: RM1 mill (5.55%)
Working Capital: RM2.743 mil (15.24%)
Listing Expenses: RM3.2 mil (17.78%)
Conclusion
Good thing is:
1. PE is 8.33
2. Debt ratio is healthy.
3. Co-founder still manage the company.
4. Product is niche market.
5. IPO price is near to net asset.
The bad things:
1. Lisitng Expenses is too expensive.
2. 25.32% is use to pay debt.
3. Revenue past 3 years continue to drop.
4. Direcetor fee is expensive.
Conclusions
Overall is only an average company.
IPO Price at RM0.75
Good time : RM1.08 (PE12)
Bad time : RM0.54 (PE6)
Thursday, April 28, 2016
Salutica Berhad
IPO (Rating 2.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/04/16
Close to apply: 06/05/16
Listing date: 18/05/16
Fundamental
Market: Ace Market
Price: RM0.80 (par value:RM0.10)
EPS: RM0.051 (7 mth)
P/E: 9.72x (EPS full year is cal by EPS2015 90% +7mth divided by 19mth)
Cash & fixed deposit after IPO: RM0.13 per shares (Cash 50.745mil, Debt 39.202 mil)
NA after IPO: RM0.37
Debt ratio: 0.346 (Debt: RM39.202 mil, Asset: RM143.913 mil)
Dividend policy: 30% of annual net profit
Business
Manufacture of Bluetooth devices
Manufacture of other electronic & preision
Major Customer & Supplier
Major Cutomers: 89.9% (Plantronic 42.4%, Jaybird 43.6%, Sony 21.4%, Canin Opto 0.4%)
Majot Supplier: 45.5% (Cotron Corp 19.9%, WPG Soutth Asia 13.8%, SDKM 11.8%), mostly import.
Main Revenue
North America: 90.85%
Europe: 2.55%
Australia & New Zealand: 0.05%
Asia: 6.02%
Africa: 0.015%
Malaysia: 0.515%
Past Financial Proformance (Revenue)
2013: RM78.559 mil (EPS RM-0.835)
2014: RM234.212 mil (EPS RM0.047)
2015: RM192.518 mil (EPS RM0.088)
2016(7month): RM145.654 mil (EPS RM0.051)
After IPO Sharesholding
James Lim, Joshua Lim, Joel Lim: 67.7%
Director Salary (2016)
Chia Chee Hoong: RM0-50k
James Lim: RM1.5mil-1.55mil
Joshua Lim: RM0-50k
Low Teng Lum: RM0-50k
Leow Chan Khiang: RM0-50k
***summary total directors salary from gross profit & other income: 5.5%-6.4%
Use of fund
Repayment debt: 13.6% (Bad)
Capital Expenditure: 40.1% (Good)
R & D: 13.1% (Normal)
Working Capital: 26.8% (Normal)
Listing Expenses: 6.4% (below average)
Conclusion
Good thing is:
1. EPS growing pass 3 years.
2. Benefit from USD (if USD strengthen).
3. Estimated PE is 9.72 (good earning for EPS)
4. Debt ratio still in healthy level.
5. 80% IPO fund use to business growth.
The bad things:
1. CEO not Co-founder.
2. Listing in ACE market (requirement listing is more easy than main market, mean more risk involve).
3. Total director salary is only average, but CEO salary is super high.
4. Margin earning will reduce if USD is weaken.
5. Heavily focus on major customer.
6. 13.6% IPO fund use to pay debt.
Conclusions
Overall is above average/normal company. Having good earning with PE9.72x is attractive, however investor should take consideration on USD weaken effect.
2015 sales is lower than 2014, but earning per shares in increased, which mean we should take consideration on USD at weaken period how this company is sulvive. By using the USD rate 2014 (before USD go up) PE is 17.
IPO Price at RM0.80
Good time : RM1.056 (PE15 discount 20%)
Bad time : RM0.56 (PE15 discount 20%)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 28/04/16
Close to apply: 06/05/16
Listing date: 18/05/16
Fundamental
Market: Ace Market
Price: RM0.80 (par value:RM0.10)
EPS: RM0.051 (7 mth)
P/E: 9.72x (EPS full year is cal by EPS2015 90% +7mth divided by 19mth)
Cash & fixed deposit after IPO: RM0.13 per shares (Cash 50.745mil, Debt 39.202 mil)
NA after IPO: RM0.37
Debt ratio: 0.346 (Debt: RM39.202 mil, Asset: RM143.913 mil)
Dividend policy: 30% of annual net profit
Business
Manufacture of Bluetooth devices
Manufacture of other electronic & preision
Major Customer & Supplier
Major Cutomers: 89.9% (Plantronic 42.4%, Jaybird 43.6%, Sony 21.4%, Canin Opto 0.4%)
Majot Supplier: 45.5% (Cotron Corp 19.9%, WPG Soutth Asia 13.8%, SDKM 11.8%), mostly import.
Main Revenue
North America: 90.85%
Europe: 2.55%
Australia & New Zealand: 0.05%
Asia: 6.02%
Africa: 0.015%
Malaysia: 0.515%
Past Financial Proformance (Revenue)
2013: RM78.559 mil (EPS RM-0.835)
2014: RM234.212 mil (EPS RM0.047)
2015: RM192.518 mil (EPS RM0.088)
2016(7month): RM145.654 mil (EPS RM0.051)
After IPO Sharesholding
James Lim, Joshua Lim, Joel Lim: 67.7%
Director Salary (2016)
Chia Chee Hoong: RM0-50k
James Lim: RM1.5mil-1.55mil
Joshua Lim: RM0-50k
Low Teng Lum: RM0-50k
Leow Chan Khiang: RM0-50k
***summary total directors salary from gross profit & other income: 5.5%-6.4%
Use of fund
Repayment debt: 13.6% (Bad)
Capital Expenditure: 40.1% (Good)
R & D: 13.1% (Normal)
Working Capital: 26.8% (Normal)
Listing Expenses: 6.4% (below average)
Conclusion
Good thing is:
1. EPS growing pass 3 years.
2. Benefit from USD (if USD strengthen).
3. Estimated PE is 9.72 (good earning for EPS)
4. Debt ratio still in healthy level.
5. 80% IPO fund use to business growth.
The bad things:
1. CEO not Co-founder.
2. Listing in ACE market (requirement listing is more easy than main market, mean more risk involve).
3. Total director salary is only average, but CEO salary is super high.
4. Margin earning will reduce if USD is weaken.
5. Heavily focus on major customer.
6. 13.6% IPO fund use to pay debt.
Conclusions
Overall is above average/normal company. Having good earning with PE9.72x is attractive, however investor should take consideration on USD weaken effect.
2015 sales is lower than 2014, but earning per shares in increased, which mean we should take consideration on USD at weaken period how this company is sulvive. By using the USD rate 2014 (before USD go up) PE is 17.
IPO Price at RM0.80
Good time : RM1.056 (PE15 discount 20%)
Bad time : RM0.56 (PE15 discount 20%)
Tuesday, April 26, 2016
LKL International Berhad
IPO (Rating 2.5 star out of 5.0)
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 26/04/16
Close to apply: 04/05/16
Listing date: 16/05/16
Fundamental
Market: Ace Market
Price: RM0.20 (par value:RM0.10)
EPS: RM0.0056 (6 mth)
P/E: 14.18x (EPS full year is cal by EPS2015 90% +6mth divided by 18mth)
Cash & fixed deposit after IPO: RM0.035 per shares (Cash 15.134mil, Debt 9.258mil)
NA after IPO: RM0.13
Debt ratio: 0.146 (Debt: RM9.258 mil, Asset: RM63.585 mil)
Dividend policy: no fixed dividend policy
Syariah Status: (I can't found the status in prospectus)
Business
Manufacturing Medical/Healthcare beds, medical peripherals & accessories.
Main Revenue
Malaysia:74.63%
Oversea: 25.37%
Business Shares (2014)
LKL: 40.5%
Others: 59.5%
Past Financial Proformance
2013: RM28.077 mil (EPS RM0.0141)
2014: RM38.893 mil (EPS RM0.0190)
2015: RM39.039 mil (EPS RM0.0189)
After IPO Sharesholding
Tan Sri Datuk Adzmi Bin Abdul Wahab: 0.08%
Lim Kon Lian & Mok Mei Lan: 41.47%
Tan Chuan Hock: 6.71%
Tevanaigam Randy Chitty: 0.08%
Selma Enolil Binti Mustapha Khalil: 0.08%
Director Salary (2016)
Tan Sri Datuk Adzmi Bin Abdul Wahab: RM0-50k
Lim Kon Lian:RM650k-700k (62 yrs old)
Mok Mei Lan: RM350k-400k (61 yrs old)
Tan Chuan Hock: RM0-50k
Tevanaigam Randy Chitty: RM0-50k
Selma Enolil Binti Mustapha Khalil: RM0-50k
***summary total directors salary from gross profit & other income: 6.296% - 8.18%
Use of fund
Capital Expenditure: 37.61%
Working Capital: 33.65% (Normal)
Repayment debt: 17.68% (Bad)
Listing Expenses: 11.06%
Conclusion
Good thing is:
1. Co-founder still with the company (Lim & Mok)
2. Yearly revenue is increasing but slow down.
3. Debt ratio is in helathy level, Net asset not too far from IPO price.
4. Have market shares 40.5% (how much portion total selling in Malaysia compare other competitor).
The bad things:
1. Director salary is expensive compare to its income.
2. Listing in ACE market.
3. 17.68% of IPO fund use to pay debt.
4. Co-founder at 62 yrs old.
Conclusions
Overall is a normal IPO. Still unable to consider is good IPO. With slow down in revenue & PE 14.18 not consider cheap (M'sia country PE16.6 @ 8/4/16).
Because the company total revenue not consider very huge amount, if the next half year result able to perform better, it will increase a lot the company EPS & PE will drop as well.
Dicertor salary is consider expensive as well.
Price at RM0.20 little bit expensive.
Good time: RM0.28 (PE21)
Bad time: RM0.14 (PE10)
***Reader must aware that RM0.20 IPO price is 'look' cheap, & first day of listing will have a lot of buy & sell, price might up at morning, BUT if you unable to subscribe the IPO, better not to buy at first day.
Copyright@http://lchipo.blogspot.com/
Date
Open to apply: 26/04/16
Close to apply: 04/05/16
Listing date: 16/05/16
Fundamental
Market: Ace Market
Price: RM0.20 (par value:RM0.10)
EPS: RM0.0056 (6 mth)
P/E: 14.18x (EPS full year is cal by EPS2015 90% +6mth divided by 18mth)
Cash & fixed deposit after IPO: RM0.035 per shares (Cash 15.134mil, Debt 9.258mil)
NA after IPO: RM0.13
Debt ratio: 0.146 (Debt: RM9.258 mil, Asset: RM63.585 mil)
Dividend policy: no fixed dividend policy
Syariah Status: (I can't found the status in prospectus)
Business
Manufacturing Medical/Healthcare beds, medical peripherals & accessories.
Main Revenue
Malaysia:74.63%
Oversea: 25.37%
Business Shares (2014)
LKL: 40.5%
Others: 59.5%
Past Financial Proformance
2013: RM28.077 mil (EPS RM0.0141)
2014: RM38.893 mil (EPS RM0.0190)
2015: RM39.039 mil (EPS RM0.0189)
After IPO Sharesholding
Tan Sri Datuk Adzmi Bin Abdul Wahab: 0.08%
Lim Kon Lian & Mok Mei Lan: 41.47%
Tan Chuan Hock: 6.71%
Tevanaigam Randy Chitty: 0.08%
Selma Enolil Binti Mustapha Khalil: 0.08%
Director Salary (2016)
Tan Sri Datuk Adzmi Bin Abdul Wahab: RM0-50k
Lim Kon Lian:RM650k-700k (62 yrs old)
Mok Mei Lan: RM350k-400k (61 yrs old)
Tan Chuan Hock: RM0-50k
Tevanaigam Randy Chitty: RM0-50k
Selma Enolil Binti Mustapha Khalil: RM0-50k
***summary total directors salary from gross profit & other income: 6.296% - 8.18%
Use of fund
Capital Expenditure: 37.61%
Working Capital: 33.65% (Normal)
Repayment debt: 17.68% (Bad)
Listing Expenses: 11.06%
Conclusion
Good thing is:
1. Co-founder still with the company (Lim & Mok)
2. Yearly revenue is increasing but slow down.
3. Debt ratio is in helathy level, Net asset not too far from IPO price.
4. Have market shares 40.5% (how much portion total selling in Malaysia compare other competitor).
The bad things:
1. Director salary is expensive compare to its income.
2. Listing in ACE market.
3. 17.68% of IPO fund use to pay debt.
4. Co-founder at 62 yrs old.
Conclusions
Overall is a normal IPO. Still unable to consider is good IPO. With slow down in revenue & PE 14.18 not consider cheap (M'sia country PE16.6 @ 8/4/16).
Because the company total revenue not consider very huge amount, if the next half year result able to perform better, it will increase a lot the company EPS & PE will drop as well.
Dicertor salary is consider expensive as well.
Price at RM0.20 little bit expensive.
Good time: RM0.28 (PE21)
Bad time: RM0.14 (PE10)
***Reader must aware that RM0.20 IPO price is 'look' cheap, & first day of listing will have a lot of buy & sell, price might up at morning, BUT if you unable to subscribe the IPO, better not to buy at first day.
Tuesday, March 29, 2016
PECCA GROUP Berhad
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)
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)
Subscribe to:
Posts (Atom)