MN Holding BERHAD

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Open to apply: 08/04/2022
Close to apply: 15/04/2022
Balloting: 18/04/2022
Listing date: 28/04/2022

Share Capital
Market cap: RM85.8375 mil
Total Shares:  408.750mil shares
 
Industry & Competitor (PAT%)
Capital expenditure (receurring power: generate, transmission & distrubite) in Msia: CAGR 12.4% 
(i) underground utilities engineering services and solutions: Indutry player Profit after tax range -0.1% to 12.8% (MN holding is 5.8%)
(ii) substation engineering services and solutions: Indutry player Profit after tax range -10% to 14% (MN holding is 14%) 

Business (2021)
Principally involved in the provision of infrastructure utilities construction services and solutions. Customers range in the power, gas, sewerage and telecommunications industries in Malaysia. 

Fundamental
1.Market: Ace Market
2.Price: RM0.21
3.P/E: 10.55
4.ROE(Pro Forma III): 15.87% (FPE2022 after IPO)
5.ROE: 20.7% (FYE2021), 17.6%(FYE2020), 23.25%(FYE2019), 33.38% (FYE2018)
6.NA after IPO: RM0.14
7.Total debt to current asset after IPO: 0.56 (Debt: 60.899mil, Non-Current Asset: 9.524mil, Current asset: 108.933mil)
8.Dividend policy: didn't have formal dividend policy. 

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE 31oct): RM33.981 mil (Eps: 0.0074),PAT: 8.96%
2021 (FYE 30Jun): RM115.200 mil (Eps: 0.0199),PAT: 7.06%
2020 (FYE 30Jun): RM86.008 mil (Eps: 0.0139),PAT: 8.33%
2019 (FYE 30Jun): RM65.676 mil (Eps: 0.0156),PAT: 9.69%
2018 (FYE 30Jun): RM51.754 mil (Eps: 0.0180),PAT: 14.23%

Order Book 
2022: RM41.980mil
2023: RM92.654mil
2024: RM26.604mil
2025: RM10.953mil

After IPO Sharesholding
1. Loy Siong Hay:28.66%
2. Dato' Toh: 28.66%
3. Dang Siong Diang: 12.68%
4. others 5 directors: 0.9%

Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM1.354 mil
key management remuneration: RM0.2 mil - RM0.3 mil
total (max): RM1.654 mil or 6.6%  

Use of fund
1.Capital Expenditure: 34.02%
2.Repayment of bank borrowings: 23.27%
3. Working capital: 25.24%
4. Lisiting expenses: 17.47%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is a normal IPO. PE10.55 still acceptable. 

*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.

CENGILD MEDICAL BERHAD

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Open to apply: 30/03/2022
Close to apply: 05/04/2022
Balloting: 08/04/2022
Listing date: 18/04/2022

Share Capital
Market Cap: RM mil (will depend on institution price demand)
Total Shares: 818.8 mil shares

Industry & Competitor (PAT%)
Life necessity industrial. 
Cengild Medical: 9.9%
IHH: 11.4%
KPJ: 7.5%
Beacon hospital S/B: 18.1%
Thomsom Hospital: 10%
Others: -5% to 7.7% 
*refer prospecture book pg146. 

Business (2021)
Medical centre specialising in the diagnosis and treatment of gastrointestinal, liver diseases and obesity.
Consultant services: 37%
Nursing services: 30.1&%
Clinical support services: 31.90%

Fundamental
1.Market: Ace Market
2.Price: RM0.33 (IF Institution price lower then 0.33 will received the bal refund).
3.P/E: 27.01
4.ROE(Pro Forma III): 11.79% (FPE2021 after IPO)
5.ROE: 72.6% (FYE2021), 40%(FYE2020), 25.3%(FYE2019), losses(FYE2018)
6.NA after IPO: RM0.10
7.Total debt to current asset after IPO: 0.37 (Debt: 31.433mil, Non-Current Asset: 31.768mil, Current asset: 84.482mil)
8.Dividend policy: estimated 25% PAT as dividend policy. 

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FPE 31oct): RM20.524 mil (Eps: 0.0037),PAT:10.7%
2021 (FPE 30Jun): RM63.470 mil (Eps: 0.0167),PAT:15.8%
2020 (FYE 30Jun): RM39.180 mil (Eps: 0.0066),PAT:10.1%
2019 (FYE 30Jun): RM28.183 mil (Eps: 0.0025),PAT:5.2%%
2018 (FYE 30Jun): RM11.679 mil (Eps: -0.0069),PAT:Losses

After IPO Sharesholding
1. Dato' Dr Tan Huck Joo: 16.67%
2. Emeritus Professor Dato’ Dr Goh Khean Lee: 7.35%
3. Dr Mohamed Akhtar Bin Mohamed Ditali Qureshi: 7.01%

Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM5.462 mil
key management remuneration: RM5.1mil - RM5.35mil
total (max): RM10.812mil or  20.05%  

Use of fund
1.Expansion of existing medical centre: 18%
2.Estabilishing new medical centres: 51.38%
3. Working capital: 24.11%
4. Lisiting expenses: 6.51%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Is a good & attractive IPO with high growth record of business activities. PE27 is not expensive with the expand of another 2 new medical centre to boost income. 

*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.

PAPPAJACK BERHAD

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Open to apply: 11/03/2022
Close to apply: 18/03/2022
Balloting: 23/03/2022
Listing date: 01/04/2022

Share Capital
Market Cap: RM200.4 mil
Total Shares: 668 mil shares

Industry & Competitor
Pawbroking industry in Malaysia CARG: 4.79%
Ar-Rahnu CARG: -9.77%
Industry market shares: 2.15% (2020, included Ar-Rahnu).

Business (2021)
Pawnbroking in Malaysia (Pajak Gadai) with interest rate 1.3%-2% pawn loan (per month).
Pawnbroking: 56.37%
Sale of unredeemed or bid pledges: 43.63%

Fundamental
1.Market: Ace Market
2.Price: RM0.30 
3.P/E: 24.39
4.ROE(Pro Forma III): 4.02% (FPE2021)
5.ROE: 7.54%(FYE2020), 3.03%(FYE2019), 2.86%(FYE2018)
6.NA after IPO: RM0.24
7.Total debt to current asset after IPO: 0.11  (Debt: 18.883mil, Non-Current Asset: 10.487mil, Current asset: 169.337mil)
8.Dividend policy: no formal dividend policy. 

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FPE 30Sep): RM25.407 mil (Eps: 0.0081),PAT:21.36%
2020 (FYE 31Dec): RM30.769 mil (Eps: 0.0123),PAT:26.67%
2019 (FYE 31Dec): RM19.207 mil (Eps: 0.0029),PAT:10.22%
2018 (FYE 31Dec): RM10.010 mil (Eps: 0.0024),PAT:15.69%

After IPO Sharesholding
1. TSE Sejahtera: 47.85%
2. Lim Boon Hua: 50.17% (indirect) 
3. Law Book Ching: 47.85% (indirect) 
4. Lim Siew Fang: 47.85% (indirect) 
5. Lee Kooi Lan: 47.85% (indirect) 

Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM0.441mil
key management remuneration: RM0.305mil
total (max): RM0.746mil or 5.4%  

Use of fund
1.Expansion of pawnbroking outlets: 38.36%
2. Cash capital for existing 20 pawnbroking outlets: 54.05% 
3. Listing expenses: 7.59%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Is a attractive IPO on the high interest return business but also come with high risk (category as high risk high return 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.

Farm Fresh Berhad

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Open to apply: 28/02/2022
Close to apply: 08/03/2022
Balloting: 11/03/2022
Listing date: 22/03/2022

Share Capital
Market Cap: RM mil (will based on final instutional price for cal)
Total Shares: 1,857,954,837 shares

 

Industry Competitor
Farm fresh: PE34.6, PAT margin 6.7% (est without the tax penalty PAT 13.4%)
Nestle: PE55.76, PAT margin 10.21%
Dlady: PE8.39, PAT margin 6.67%

Business (2021)
Farming, manufacturing, and distribution of various dairy product and plant based product. 
Malaysia: 84.6% (revenue)
Australia: 11.5%
Singapore: 3.8%
Brunei: 0.1%

Fundamental
1.Market: Main Market
2.Price: RM1.35 (if instutional price is lower, then retail price will refund the difference)
3.P/E: 34.6 (EPS:0.039, prospecture book assume without the tax penalty)
4.ROE(Pro Forma III): 8.7% (FPE2021)
5.ROE: 13.62%(FYE2021), 17.38%(FYE2020), 16.8%(FYE2019)
6.NA after IPO: RM0.31
7.Total debt to current asset after IPO: 0.7676 (Debt: 404.579mil, Non-Current Asset: 445.904mil, Current asset: 527.087mil)
8.Dividend policy: 24% PAT dividend policy. 

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FPE Sep): RM257.187 mil (Eps: 0.031),PAT:19.2%
2021 (FYE 31Mar): RM490.498 mil (Eps: 0.022),PAT:6.7%
2020 (FYE 31Mar): RM303.067 mil (Eps: 0.021),PAT:11.3%
2019 (FYE 31Mar): RM178.227 mil (Eps: 0.026),PAT:15.4%

After IPO Sharesholding

1. Loi Tuan Ee: 44.52% (indirect)
2. Rainforest: 30.73%
3. Farmchoice: 13.79%
4. Agrifood: 11.8%
5. Khazanah: 11.8% (indirect)
6. Loi Foon Kion: 30.73% (indirect)

Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM2.588mil
key management remuneration: RM3.5mil - 3.75mil
total (max): RM6.338mil or 4.50%  

Use of fund
1.New manufacturing hub, dairy farm, & integrated processing facilities: 46.5%
2.Expansion production faiciliy in Australia: 19.9%
3.Regional expansin outside of Malaysia: 13.3%
4. Working capital: 13.6%
5. Listing expenses: 6.7%

Highlight
1. Use 79.7% IPO fund to expand business (will increase production > increase revenue) 24mths to completed. 
2. Expand Autralia production. 
3. Expand to Southeast Asia region within 24 months. 
4. UPM facilitiy commence operations in March 2022. 

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

Is a good IPO but with a bit expensive offering price. 

*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.

Siab Holdings Berhad

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Open to apply: 28/01/2022
Close to apply: 16/02/2022
Balloting: 18/02/2022
Listing date: 28/02/2022

Share Capital
Market Cap: RM146.890 mil
Total Shares: 489.634 mil shares
 
Industry Competitor (revenue)
Siab: PAT4%, PE13.33, ROE11.97
Inta Bina: PAT2.9%, PE13.52, ROE7.38
Nestcon: PAT4.2, PE42.21, ROE6.16 
Pesona Metro: PAT-2.1%, PE37.16, ROE2.66
TCS: PAT6.7%, PE11.68, ROE13.57

Business (2021)
Building construction services
 - Residential: 43.51%
 - Non-Residential: 56.37%
ICT soloutions and services.
 - others: 0.12%

Fundamental
1.Market: Ace Market
2.Price: RM0.30
3.P/E: 13.33 (EPS:0.0225)
4.ROE(Pro Forma III): 11.97% (forecast using 7mth FPE2021)
5.ROE: 30.07%(FYE2020), 24.22%(FYE2019), 24.19%(FYE2018)
6.NA after IPO: RM0.15
7.Total debt to current asset after IPO: 0.64 (Debt: 102.555mil, Non-Current Asset: 12.654mil, Current asset: 161.259mil)
8.Dividend policy: no formal dividend policy. 
 
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (7mths): RM104.498 mil (Eps: 0.0102),PAT:4.77%
2020: RM273.388 mil (Eps: 0.0225),PAT:4.04%
2019: RM242.888 mil (Eps: 0.0142),PAT:2.86%
2018: RM145.419 mil (Eps: 0.0083),PAT:3.62%
 
After IPO Sharesholding
Tan Sri Dato' Sri Mohamad Fuzi bin Harun: 0.06%
Ng Wai Hoe: 18.5%
Lim Mei Hwee: 12.75%
Tan Sok Moi: 9.5%
Datuk Lim Tong Lee: 0.06%
Dato' Sri Shahril bin Mokhtar: 0.06%
Andrea Huong Jia Mei: 0.06%

Directors & Key Management Remuneration for FYE2022 (from gross profit 2020)
Total director remuneration: RM2.211mil
key management remuneration: RM0.50 mil - 0.65mil
total (max): RM2.861 mil or 26.3%  
 
Use of fund
Purchase of land & construction of storage facility: 16.61%
Purchase of machinery & equipment: 35.74%
Purchase of BIM system software: 8.35%
Upgrade software & system: 2.21%
Office expansion: 0.82%
Working capital: 25.32%
Listing expenses: 10.95%
 
Highlight
-no

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is a normal IPO. The industry of the business it self is not attractive, because the low net profit margin environment. 

*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.

Senheng New Retail Berhad

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Open to apply: 29/12/2021
Close to apply: 10/01/2022
Balloting: 12/01/2022
Listing date: 25/01/2022
Share Capital
Market Cap: RM427.856 mil
Total Shares: 1.50 bil shares
 
Industry Competitor (revenue)
E&E retail sales CAGR 3.99%
Senheng: RM1.294 bil
Elitetrax: RM0.663 bil (Harvey Norman)
Courts: RM0.407 bil
Singer: RM0.241 bil
Homepro: RM0.155 bil
Onking: RM96.01 mil
***unable to compare PAT or PE due to limited info. 

Business (2021)
Retailer of consumer electrical and electronic products.

Revenue by Geo (2021)
Msia: 100%

Fundamental
1.Market: Main Market
2.Price: RM1.07
3.P/E: 28.84 (EPS: 0.0371)
4.ROE(Pro Forma III): 10.36% (forecast using 6mth FPE2021)
5.ROE: 33.47%(FYE2020), 40.34%(FYE2019), 71.39%(FYE2018)
6.NA after IPO: RM0.30
7.Total debt to current asset after IPO: 0.75 (Debt: 455.252 mil, Non-Current Asset: 301.038 mil, Current asset: 604.206 mil)
8.Dividend policy: PAT 30% dividend policy. 
 
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (6mths): RM673.911 mil (Eps:0.0155),PAT: 3.5%
2020: RM1.294 bil (Eps:0.0371),PAT: 4.3%
2019: RM1.144 bil (Eps:0.0330),PAT: 4.3%
2018: RM1.172 bil (Eps:0.0407),PAT: 5.2%
***above EPS calculate use diluted EPS 1.50 bil shares (enlarged shares unit).
***Prospecture book EPS page 224 using diluted EPS 1.25bil shares (above EPS did not follow prospecture book EPS).
 
After IPO Sharesholding
SQ Capital: 57.97%
Lim Kim Heng: 58.01% (indirect)
Lim Kim Chieng: 58.01% (indirect)
Lim Kim Yew: 57.97% (indirect)

Directors & Key Management Remuneration for FYE2021 (from gross profit 2020)
Total director remuneration: RM3.417mil
key management remuneration: RM3.25mil - 3.65mil
total (max): RM7.067 mil or 2.6%  
 
Use of fund
Upgrade & expand chain of retail stores: 60%
Repayment of bank borrowing: 17.2%
Develop new brand distribution: 8.22%
Expand & upgrade warehouse & logistics newtwork: 7.48%
Boost Digital infrastructure: 3.63%
Listing expenses: 3.47%

Highlight
1. To open new store
   A. Grand Senheng Elite: 11 store
   B. Grand Senheng: 37 store
   C. Grand senQ: 8 store
   D. senQ: 7 store

Good thing is:
1. Expend for new stores. 
2. Director & key management remuneration acceptable. 

The bad things:
1. Unable to maintain stable ROE. 
2. PE is 28. 
3. Revenu did not grow much for past 3 years. 
4. Profit after tax (PAT) margin is less than 5%. 
5. Use 17.2% IPO fund for repayment of borrowing. 

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is an expensive IPO with PE28 plus PAT below 5%. Although the company planed to expand more store to increase revenue, but is already price in into PE28. 

*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.

Coraza Integrated Technology Berhad

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Open to apply: 22/12/2021
Close to apply: 06/01/2022
Balloting: 10/01/2022
Listing date: 20/01/2022

Share Capital
Market Cap: RM119.932 mil
Total Shares: 428.331mil shares
 
Industry Competitor PAT
Coraza: 9.6% (PE19)
Alpha: -7.7%
Frencken: 6.1% (PE18, SGX Mrk)
Kobay: 17.2% (PE60)
Synturn: 17.4% 
UWC: 26.4% (PE68)

Business (2021)
Sheet metal fabrication, Percision machining, & sub-modular assembly. 
Semicoductor: 56.5%
Instrumentation: 17.9%
Life science & medical devices: 18.7%
Aerospace, telecommunication and E&E: 6.9%

Revenue by Geo (2021)
M'sia: 61.9%
S'pore: 28.3%
USA: 7.8%
Others: 0.4%
Euro: 1.6%

Fundamental
1.Market: Ace Market
2.Price: RM0.28
3.P/E: 19 (EPS:0.0147)
4.ROE(Pro Forma III): 16.97% (forecast using 6mth FPE2021)
5.ROE: 27.4%(FYE2020), 12.2%(FYE2019), 14%(FYE2018)
6.NA after IPO: RM0.15
7.Total debt to current asset after IPO: 0.969(Debt: 44.952 mil, Non-Current Asset: 62.337 mil, Current asset: 46.386 mil)
8.Dividend policy: no formal dividend policy. 
 
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (6mths): RM43.195 mil (Eps:0.0126),PAT: 12.5%
2020: RM83.686 mil (Eps:0.0147),PAT: 7.5%
2019: RM58.594 mil (Eps:0.0080),PAT: 5.8%
2018: RM56.023 mil (Eps:0.0081),PAT: 6.2%

After IPO Sharesholding
Paul Heng Weng Seng: 48.3%
Liew Sow Ying: 19.3%
Lim Teik Hoe: 19.3% (indirect)

Directors & Key Management Remuneration for FYE2022 (from gross profit 2020)
Total director remuneration: RM0.73 mil
key management remuneration: RM0.6mil - 0.85mil
total (max): RM1.58 mil or 7.4%  
 
Use of fund
Purchase of new machinery: 47%
Construction of factory: 19.5%
Implementation of ERP system: 3.6%
Extension of existing buidling: 4.6%
Repayment of bank borrowings: 13.9%
Listing expenses: 11.4%

Highlight
1. New factory will increase 25% capicity (estimated completed by Dec2023). 

Good thing is:
1. Semiconductor industry on growing stage, PE19 is acceptable. 
2. ROE still above 15%.
3. Revenue growing for past 3 years. 
4. Director & key management remuneration is not high. 
5. IPO for expand business capacity. 
 
The bad things:
1. The company having concentration risk on 2 customer (66%-77% trade receivable from 2018-2021).
2. Director averaging above age 60. 
3. Competitor in same industry have better performance. 

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is still a discount IPO compare to their competitor that get high PE in same industry. After IPO should able to back to acceptable PE30 & above. 

*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.