Gagasan Nadi Cergas Berhad

IPO Rating ( 2.25 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 13/12/2018
Close to apply: 24/12/2018
Listing date: 08/01/2019

Share Capital
Market Cap: RM225.900 mil
Shares Issue to sell: 200 mil shares (IPO 140mil, private placement 60mil)
Enlarged Issued Shares: 753 mil shares

Business
Building construction, management services for hostel & related facilities, Cooling system, property development.

Fundamental
Market: Ace Market
Price: RM0.30 (eps: RM0.061)
P/E & ROE: PE4.54, ROE 11.45% (estimated by FPE18 earning)
Cash & fixed deposit after IPO: RM0.1425 per shares
NA after IPO: RM0.53
Total debt to current asset after IPO: 0.55  (Debt: 505.499 mil, Non-Current Asset: 192.787 mil, Current asset: 717.309 mil)
Dividend policy: suggest up to 30% on Net profit.

Financial Ratio
Trade receivable: 64 days
Trade Payable: 84 days

Order Book Revenue by Completion Date
2018: RM 11.88 mil
2019: RM 38.06 mil
2020: RM272.60 mil
2021: RM360.32 mil

Past Financial Proformance (Revenue, EPS)
FPE 2018: RM121.646 mil (6mths eps: 0.0231)
2017: RM212.511 mil (eps: 0.0661)
2016: RM227.854 mil (eps: 0.0978)
2015: RM206.344 mil (eps: 0.0502)
2014: RM324.028 mil (eps: 0.0738)

Net Profit Margin
FPE 2018: 14.29% (6mths)
2017: 23.42%
2016: 32.32%
2015: 18.31%
2014: 17.15%

After IPO Sharesholding
Hj Wan Azman: 66.65%
Dato' Sri Subahan: 6.78%
Ir. Dr. Muhamad Fuad: 0.07%
Siti Naaishah: 0.07%
Chng Boon Huat: 0.07%

Director Remuneration for FYE2019 (from gross profit 2017)
Hj Wan Azman: RM1.640 mil
Dato' Sri Subahan: RM0.840 mil
Ir. Dr. Muhamad Fuad: RM0.131 mil
Siti Naaishah: RM0.120 mil
Chng Boon Huat: RM0.125 mil
Total director remuneration from gross profit: 3.6%

Use of fund
AFF Mixed Development: 33.3%
Capital expenditure on product: 15.5%
Working capital: 39.3%
Listing expenses: 11.9%

Conclusion
Good thing is:
1. IPO price RM0.30 below net asset RM0.55 (NA after deduct for trade receivable RM615.99 that billed monthly basic until 2034 & 2037, NA is RM0.39)
2. Have clear dividend policy.
3. Pricing IPO at low (PE4.54) match back to the slow market situation for property & construction.
4. 2020 & 2021 revenue will grow better.
5. Director fees range at acceptable level compare the company gross profit.
6. 88.1% IPO fund use for business expansion.

The bad things:
1. Contrusction business & property development industry estimated will not growing for coming 2 years.
2. Estimated 2018 & 2019 revenue will drop based on estimation using existing order book.
3. ROE% only 11.45
4. Previous revenue difficult to use as forecast for futures performance under new government.
5. Listing status is Ace market (however the industrial rebound it will have opportunities to go main market based on current revenue)

Conclusions
1. Is a above average IPO. Overall able to see the honesty of the IPO. The IPO price pricing at fair level compare to the company business situation.
2. PE4.54 is based on 2017 revenue. If based on forecast revenue on 2018 PE should be PE6.49
3. The timing is not encourage the company to get a good price (current property & construction industry), however with the potential revenue estimated hope to sell it able to transfer into main market after 3 years. Invest in this company need to be patient & hold for more than 3 years to see good return.
4. Rating should be 3.25 out of 5 start. However consider on the overall property & construction situation, I have no choice to rate at 2.25. 

IPO Price: RM0.30
Good time: RM0.42 (PE9)
Bad time: RM0.23 (PE5)

DPI Holdings Berhad

IPO Rating (1.75 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 27/11/2018
Close to apply: 18/12/2018
Listing date: 07/01/2019

Share Capital
Market Cap: RM121.683 mil
Shares Issue to sell: 126.560 mil shares
Enlarged Issued Shares: 486.731 mil shares

Business
Manufaczture Aeosol product- DPI, Achor, Kromoto
Private label manufacturing services.

Market sizes (2013-2017 CAGR)
Msia: 8.1% (ave one year 1.6% per yr)
Japan: 3.9%
Australia: 4.1%
New Zealand: 4.0%
Indonesia: 3.2%
Vietnam: 3.2%
Myanmar:4.2%

Revenue on Geo (2018)
Msia: 81.74%
Outside Msia: 18.26%

Fundamental
Market: Ace Market
Price: RM0.25 (eps: RM0.0163)
P/E & ROE: PE15.34, ROE9.3%
Cash & fixed deposit after IPO: RM0.097 per shares
NA after IPO: RM0.13
Total debt to current asset after IPO: 0.12  (Debt: 7.881 mil, Non-Current Asset: 5.724 mil, Current asset: 65.656 mil)
Dividend policy: -

Financial
Trade Receivable: 58 days
Trade payable: 69 days

Past Financial Proformance (Revenue, EPS)
2018: RM50.294 mil (eps: 0.0163)
2017: RM49.360 mil (eps: 0.0258)
2016: RM46.923 mil (eps: 0.0206)

Net Profit Margin
2018: 11.86% (after exclude one-off asset dispose gain)
2017: 18.82%
2016: 15.81%

After IPO Sharesholding
Peter Chai: 56.98%
Adam Chai: 17.02%
Datuk Seri Nurmala: 0.04%
Fong Yoo Kaw: 0.04%
Lau Kok Hiyong: 0.04%

Director Remuneration for FYE2019 (from gross profit 2018)
Peter Chai: 806k
Adam Chai: 262k
Datuk Seri Nurmala: 60k
Fong Yoo Kaw: 60k
Lau Kok Hiyong: 60k
Total director remuneration from gross profit: 7.33%

Operation Capicity
2017: 72.32%
2018: 77.84%

Use of fund
Capital expenditure & expansion: 74.4%
Sales, Marketing & Advertising: 9.48%
Product development: 4.11%
Estimated listing expenses: 12.01%

Conclusion
Good thing is:
1. Low debt company.
2. Revenue is growing, but EPS not growing.
3. Almost all IPO funds use to expand business.

The bad things:
1. Ace market with PE15 is consider a bit expensive.
2. Market demand (market size sold by cans) on CAGR is very low.
3. No claer dividend policy.
4. Director remuneration is expensive.

Conclusions
Is a average IPO. The market demand CAGR rate of the product showing the business not likely to grow too fast.

IPO Price: RM0.25
Good time: RM0.25 (PE15)
Bad time: RM0.13 (PE8)

Techbond Group Berhad

IPO Rating (3.5 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 13/11/2018
Close to apply: 23/11/2018
Listing date: 05/12/2018

Share Capital
Market Cap: RM151.8 mil
Shares Issue to sell: 60.105 mil shares
Enlarged Issued Shares: 230.00 mil shares

Business
Produce manufacturing product
1.Water-Based Adhesives: use in woodworking,paper & packaging, contruction, automotive application.
2.Hot Melt Adhesives: use in woodworking, matteress, paper & packaging.
3.Sealants: use in OEM industrial, Repellent & cleaner.

Revenue on Geo (2018)
Msia: 20.37%
Vietnam: 53.92%
Indonesia: 11.67%
China: 6.9%
Others: 7.14%

Adheisves export from Msia (include competitor)
2013: RM226 mil
2014: RM253 mil
2015: RM307 mil
2016: RM371 mil
2017: RM474 mil
CAGR 13-17: 20.3%

Adheisves import in Vietnam (include competitor)
2012: USD83 mil
2013: USD92 mil
2014: USD99 mil
2015: USD102 mil
2016: USD107 mil
CAGR 12-16: 6.2%

Fundamental
Market: Main Market
Price: RM0.66 (eps: RM0.06)
P/E & ROE: PE11, ROE11.23%
Cash & fixed deposit after IPO: RM0.16 per shares
NA after IPO: RM0.52
Total debt to current asset after IPO: 0.0858  (Debt: 11.217 mil, Non-Current Asset: 50.942 mil, Current asset: 79.721 mil)
Dividend policy: -

Financial
Trade Receivable: 63 days
Trade payable: 37 days

Past Financial Proformance (Revenue, EPS)
2018: RM86.811 mil (eps: 0.5835)
2017: RM82.363 mil (eps: 1.1341)
2016: RM75.861 mil (eps: 7.5463)
2015: RM63.626 mil (eps: 6.1198)

Public Listed Competitors (PAT Margin)
3M Company: 0.84%
Henkel: 6.65%
Sika AG: 12.02%
H.B. Fuller: 2.32%
Techbond Gorup: 15.46%

Net Profit Margin
2018: 15.46%
2017: 17.67%
2016: 15.41%
2015: 14.90%

After IPO Sharesholding
Lee Seng Thye: 73.65%
Dato' Hamzah: 0.04%
Tan Siew Geak: -%
Ooi Guan Hoe: 0.04%
Selma Enolil: 0.04%

Director Remuneration for FYE2019 (from gross profit 2018)
Lee Seng Thye: 5.58%
Dato' Hamzah: 0.35%
Tan Siew Geak: 1.7%
Ooi Guan Hoe: 0.31%
Selma Enolil: 0.31%
Total director remuneration from gross profit: 8.25%

Use of fund
Factory Construction (Vietnam): 25.2%
Purchase of machineries & equipment (Vietnam Factory): 32.12%
Working capital (Vietnam): 15.22%
Purchase of machineries & equipment (Shah Alam Factory): 11.35%
Working capital (M'sia Expansion): 3.51%
Listing expenses: 12.6%

Conclusion
Good thing is:
1. 87.4% IPO fund use to expand business.
2. Market demand of company products increasing each year Msia export CAGR 20.3% & Viet import CAGR 6.2%.
3. Net cash company (Cash more than debt)
4. PE11 still attractive & have one of the highest Net profit margin (15.46%) in public listed company.
5. Cashflow is healthy.

The bad things:
1. ROE only 11.23%.
2. Directors fees 8.25% is consider expensive.
3. Products is having many competitors supply.
4. No clear dividend policy.

Conclusions
Overall is good IPO. Worth for invest. We should able to see the growth of the business after March 2020 (completed the factory construction in Vietnam).

IPO Price: RM0.66
Good time: RM0.96 (PE16)
Bad time: RM0.54 (PE9)

Securemetric Berhad

IPO Rating ( 2.5 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 23/10/2018
Close to apply: 30/10/2018
Listing date: 13/11/2018

Share Capital
Market Cap: RM60.900 mil
Shares Issue to sell: 68 mil shares
Enlarged Issued Shares: 243.6 mil shares

Business
Digital Security Solution (software licensing protection) & Electric Identification Product under Softkey Malaysia.

Revenue on Geo (2017)
M'sia: 12.2%
Oversea: 87.8%

Fundamental
Market: Ace Market
Price: RM0.25 (eps: RM0.0.025)
P/E & ROE: PE10.1, ROE19.84%
Cash & fixed deposit after IPO: RM0.0886 per shares
NA after IPO: RM0.125
Total debt to current asset after IPO: 0.25 (Debt: 8.487 mil, Non-Current Asset: 5.579 mil, Current asset: 33.556 mil)
Dividend policy: -

Financial
Trade Receivable: 172.8 days
Trade payable: 243.5 days

Past Financial Proformance (Revenue, EPS)
2017: RM44.767 mil (eps: 0.025)
2016: RM24.753 mil (eps: 0.018)
2015: RM16.978 mil (eps: 0.012)

Competitors (revenue)
Mimos Berhad: 34.2 mil
Securemetric: 44.77 mil
Pacific Intech: 16.73 mil
Eighth Intuition: 11.14 mil
Blue Fortress: 8.72 mil

Net Profit Margin
2017: 13.59%
2016: 17.53%
2015: 17.24%

After IPO Sharesholding
Law Seeh Key: 51.87%
Nioo Yu Siong: 9.27%
Yong Kim Fui: 6.02%
Li Jianjun: 4.93%

Director Remuneration (from gross profit 2017)
Law Seeh Key: 600k
Yong Kim Fui: 423k
Clifton Heath Fernandez: 42k
Shireen Chia Yin Ting: 36k
Mohamad Rizatuddin: 36k
Total director remuneration from gross profit: 10.18%

Use of fund
Business Expansion: 10%
Development of new digital security solution: 33.5%
Pay debt: 11.4%
Working capital: 30.4%
Listing expenses: 14.7%

Conclusion
Good thing is:
1. Software protection industry is a sunrise industry.
2. Revenue not depend solely from Malaysia. Have the abilities to received order in Asean countries include S'pore (revenue 2017, 17.7%).
3. Net profit margin 2017 13.59%, ROE19.84%, PE10, & debt 0.25. All these is healthy & good number.
4. SOBA 2016 award.

The bad things:
1. Director fee is expensive (10.18% from gross profit).
2. Trade receivable is quite long period (however of the nature of the business need maintainence for after sell service).
3. Vaxuco project completed Oct 2017, RM19.1 revenue. The company expecxt to decrease in revenue for 2018 revenue.
4. Starting 5 May 2018 the company had finish tax exemption benefit on MSC status (after 10 years business), income will need to add 24% tax.
5. Listing is in ACE market.

Conclusions
Overall is average IPO. The company have strong growth, but the coming future the company having 24% tax & reduce of the Vaxuco revenue will slow down the company revenue growth.

IPO Price: RM0.25
Good time: RM0.325 (PE13)
Bad time: RM0.175 (PE7)

Nova Wellness Group Berhad

IPO Rating ( 3.25 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 28/06/2018
Close to apply: 09/07/2018
Listing date: 20/07/2018

Share Capital
Market Cap: RM174.759 mil
Shares Issue to sell: 81.66 mil shares
Enlarged Issued Shares: 317.743 mil shares

Business
Health care product (mostly distribution on pharmacies)

Revenue on Geo (2017)
M'sia: 96.1%
Others: 3.9%

Fundamental
Market: Ace Market
Price: RM0.55 (eps: RM0.0431)
P/E & ROE: PE12.76, ROE25.64%
Cash & fixed deposit after IPO: RM0.0416 per shares
NA after IPO: RM0.17
Total debt to current asset after IPO: 0.3435 (Debt: 12.703 mil, Non-Current Asset: 36.980 mil, Current asset: 29.187 mil)
Dividend policy: suggest 30% audited profit

Financial
Trade Receivable: 125 days
Trade payable: 24 days

Past Financial Proformance (Revenue, EPS)
FPE2017 (6mth): RM12.486 (eps: 0.05)
2017: RM24.541 mil (eps: 0.1466)
2016: RM24.270 mil (eps: 0.1448)
2015: RM22.847 mil (eps: 0.1313)

Competitor
Ahealth: PE16.51
Biohldg: PE17.05, 39.5% (gross profit margin)
CCMBIO: PE19.36
Herbal Science: 46.6% (gross profit margin)
BioFact: 30.4% (gross profit margin)

Net Profit Margin
2017: 55.9%
2016: 55.8%
2015: 53.7%

After IPO Sharesholding
Dr Abdul Manaf: 0.09%
Phang Nyie Lin: 7.95%
Tan Sok Mooi: 42.50%
Phang Yeen Nung: 7.95%
Phang Yeen Aun: 7.95%

Director Remuneration (from gross profit 2017)
Dr Abdul Manaf: 36k
Phang Nyie Lin: 111k
Phang Yeen Nung: 140k
Phang Yeen Aun: 140k
Dr Munavvar: 36k
Sulaiman: 36k
Sim Seng Loong: 36k
Tan Mio Har: 36k
Total director remuneration from gross profit: 3.25%

Use of fund
New GMP-Compliant Production Facility: 36.7%
R&D: 25.8%
Expand retail market: 11.2%
Working capital: 20.5%
Lisitng Expenses: 5.8%

Conclusion
Good thing is:
1. PE still in acceptable level & Debt in healthy level.
2. ROE is attractive & net margin profit is attractive.
3. Have clear dividend poslicy.
4. Director fee is acceptable level.
5. Three year revenue is increasing.

The bad things:
1. Listing in Ace Market.
2. Trade receivable is 125days (4 month) instead of 2 month company policy credit term.
3. High depend on local market.
4. High competitive enviroment.
5. Having import business (USD stronger now USD4.03 will increase the company cost).

Conclusions
Overall is a good IPO. However IPO timing might not too encourage as USD is stronger which will increase the company cost in short-term. However it should be a good investment for long term investment.

IPO Price: RM0.55
Good time: RM0.73(PE17)
Bad time: RM0.345 (PE8)

Radiant Globaltech Berhad

IPO Rating ( 1.25 star  out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 28/06/2018
Close to apply: 10/07/2018
Listing date: 24/07/2018

Share Capital
Market Cap: RM120 mil
Shares Issue to sell: 128.080 mil shares
Enlarged Issued Shares: 525.200 mil shares

Business
Retail business system (Processing payment POS, inventory management, CMS for supermarket, hypermarket, Grocery store & other)

Revenue on Geo (2017)
M'sia: 82.44%
Oversea: 17.56%

Fundamental
Market: Ace Market
Price: RM0.23 (eps: RM0.0.0179)
P/E & ROE: PE12.85, ROE12.93%
Cash & fixed deposit after IPO: RM0.022 per shares
NA after IPO: RM0.10
Total debt to current asset after IPO: 0.44 (Debt: 25.446 mil, Non-Current Asset: 22.439 mil, Current asset: 57.282 mil)
Dividend policy: -

Financial
Trade Receivable: 103 days
Trade payable: 93 days

Past Financial Proformance (Revenue, EPS)
2017: RM80.783 mil (eps: 0.0179)
2016: RM76.847 mil (eps: 0.0238)
2015: RM66.402 mil (eps: 0.016)

Competitors
At least 32 difference competitor with revenue range 1.348mil-1.166bil.
Radiant will be consider small company in this industry.

Net Profit Margin
2017: 8.80%
2016: 12.32%
2015: 9.56%

After IPO Sharesholding
Yap Ban Foo (indirect): 32.13%
Yap Sin Sang (indirect): 26.08%
Yap Poh Keong (indirect): 7.56%

Director Remuneration (from gross profit 2017)
Yap Ban Foo: RM1.297 mil
Yap Sin Sang: RM1.163 mil
Yap Poh Keong: RM0.856 mil
Total director remuneration from gross profit: 9.89%

Use of fund
Business & capital expansion: 39.38%
Working capital: 16.15%
Expansion of retail software business: 10.18%
Pay debt: 22.41%
Listing expenses: 11.88%

Conclusion
Good thing is:
1. Three year revenue increase.
2. Debt ratio consider average.

The bad things:
1. Director fee is expensive.
2. Competitors in market is too many, & many is stroger then Radiant.
3. Use 22.41% IPO fund to pay debt.
4. Listing in Ace Market.
5. Technology changing too fast & easy to be replace by strong competitors.
6. Net profit margin is not attractive.
7. No fix dividend policy.

Conclusions
Overall is not a good IPO. Kindly avoid this IPO.

IPO Price: RM0.23
Good time: RM0.18 (PE10)
Bad time: RM0.085 (PE5)

Revenue Group Berhad

IPO Rating ( 1.75 star out of 5.0)
Copyright@http://lchipo.blogspot.com/

Date
Open to apply: 11/06/2018
Close to apply: 07/07/2018
Listing date: 18/07/2018

Share Capital
Market Cap: RM82.453 mil
Shares Issue to sell: 72.425 mil shares
Enlarged Issued Shares: 222.848 mil shares

Business
Cashless payment solution

Fundamental
Market: Ace Market
Price: RM0.37 (eps 6mth: RM0.0198)
P/E & ROE: PE9.34, ROE8.7%
Cash & fixed deposit after IPO: RM0.077 per shares
NA after IPO: RM0.0017
Total debt to current asset after IPO: 0.86 (Debt: 26.776  mil, Non-Current Asset: 33.754 mil, Current asset: 31.007 mil)
Dividend policy: -

Financial
Trade Receivable: 61.7 days
Trade payable: 78.7 days

Past Financial Proformance (Revenue, EPS)
FPE 2017: RM15.397 (eps 6mth: 0.0198)
2017: RM26.526 mil (eps: 0.0313)
2016: RM25.726 mil (eps: 0.0203)
2015: RM14.386 mil (eps: 0.0095)

RGB Net Profit Margin
FPE 2017: 21.8%
2017: 26.1%
2016: 17.5%
2015: 14.7%

Competitor PAT Margin %
RGB 26.1%
GHL 7.4%
Interbase 10.1%
IPAY88 21%
MOLPAY 16.9%

After IPO Sharesholding
Nor Azzam bin Abdul Jalil: 0.4%
Ng Chee Siong: 22.2%
Ng Shih Chiow: 21.5%
Ng shih Fang: 21.5%
Ooi Guan Hoe: 0.4%
Ng Chee Keong: 0.4%

Director Remuneration (from gross profit 2017)
Nor Azzam bin Abdul Jalil: RM66k
Ng Chee Siong: RM730k
Ng Shih Chiow: RM730k
Ng shih Fang: RM730k
Ooi Guan Hoe: RM48k
Ng Chee Keong: RM48k
Total director remuneration from gross profit: 14.94%

Use of fund
Capital Expenditure: 39.3%
Enchancement of recPay and expansion of IT team: 19.6%
Repayment Debt: 12.1%
Business expansion: 7.3%
Listing expenses: 13.1%
Working capital: 8.6% (Add missing part on posting date)

Conclusion
Good thing is:
1. In Sunrise industry, but in very competitive environment.
2. Revenue increasing over 3 year.
3. Directors still is major sharesholders.

The bad things:
1. Listing is on Ace market.
2. ROE% 8.7% is not attractive.
3. Director fee is 14.94% from gross profit, which is consider very expensive & it take big portion of company profit.
4. Use IPO fund 12.1% for debt repayment.
5. Debt to current asset is high 0.86.
6. No fix dividend policy.

Conclusions
Is consider a medium to high risk IPO. Suggest to avoid for long term investment.

IPO Price: RM0.37
Good time: RM0.43 (PE11)
Bad time: RM0.27 (PE7)