DXN HOLDINGS BHD

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opinion and reader should take their own risk in investment decision.

Open to apply: 28 Mar 2023
Close to apply: 09 May 2023
Balloting: 11 May 2023
Listing date: 19 May 2023

Share Capital
Market cap: RM mil (depend on institutional final price)
Total Shares: 4,985 mil shares

Industry CARG (2016-2026F)
Retail sales via direct selling CARG 2016-2026F: 4.6%
Industry competitors comparison (net profit%)

DXN: PE15.6
Amway (M): PE11.48 (@ 29/04/2023)
USANA: PE17.24 (@ 29/04/2023)
Herbalife: PE4.41 (@ 29/04/2023)

Business (FYE 2022)
Global health-oriented and wellness direct selling company. 
- manufacture in-house and a distribution. 
- 48 countries, 79 sale branches (member & partners), 12 external distribution agencies. 
Revenue by Geo
Malaysia: 7.1%
Other countries: 92.9%

Fundamental
1.Market: Main Market
2.Price: RM0.76 (might have price determination after institutional offer at IPO stage)
3.Forecast P/E:  15.6 @ RM0.0487
4.ROE(Pro Forma IV):  18.2%
5.ROE: 30.24%(FYE2022), 31.9%(FYE2021), 35.92%(FYE2020)
6.Net asset: RM0.21
7.Total debt to current asset: 0.71 (Debt: 635.194mil, Non-Current Asset: 775.080mil, Current asset: 896.159mil)
8.Dividend policy: target 30%-50% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PATAMI%)
2022 (FPE 31Oct, 9mths): RM1.043 bil (Eps: 0.0361),PATAMI: 17.2%
2022 (FYE 28Feb): RM1.242 bil (Eps: 0.0487),PATAMI: 19.5%
2021 (FYE 28Feb): RM1.050 bil (Eps: 0.0384),PATAMI: 18.2%
2020 (FYE 28Feb): RM1.104 bil (Eps: 0.0485),PATAMI: 21.9%

Operating cashflow vs PBT
2022 (FPE Oct2022): 69.37% 
2022: 71.65%
2021: 87.17%
2020: 88.37%

Major customer (2021)
No major customer. 

Major Sharesholders
1.LSJ Global/Malaysia: 65.2% (direct)
2.Gano Global (Singapore): 13.3% (direct)
3.Datuk Lim Siow Jin (Malaysian): 65.2% (indirect)

Directors & Key Management Remuneration for FYE2024 (from Revenue & other income 2022)
Total director remuneration: RM4.571mil
key management remuneration: RM2.350 mil – RM2.600mil
total (max): RM7.171 mil or 0.71%

Use of funds
1.Repayment of bank borrowings: 65.8%
2.Working capital: 14.4%
3.Estimated listing expenses: 19.8%

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 suitable for dividend investment counter. Grow rate likely will be limited. The price offer also averagely a bit expensive compare to competitors in same industry. 
If want to invest for dividend (into this counter, the best way might need to wait it drop below IPO to PE range 15 or wait the revenue grow match to PE15. 

*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.

RADIUM DEVELOPMENT BERHAD

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opinion and reader should take their own risk in investment decision.

Open to apply: 27/04/2023
Close to apply: 16/05/2023
Balloting: 19/05/2023
Listing date: 31/05/2023

Share Capital
Market cap: RM1.734 bil
Total Shares: 3.468 bil shares

Industry CARG (2019-2022)

Value of high-rise residential property transactions: 12.03% (KL),  9.35% (Selangor)
Number of high-rise residential property transactions: 9.02% (KL), 7.78% (Selangor)
Average prices of high-rise residential property transactions: 2.87%(KL), 1.72% (Selangor)
Total supply of high-rise residential properties: 595,317 (KL), 637.227 (Selangor)
Number of overhang high-rise residential units: 9,333 (KL),  5,650 (Selangor)
Industry competitors comparison
Radium Group: 17.06
IJM Corporation Berhad: PE42.16
Sunway Berhad: PE11.59
Mah Sing: PE8.16
WCT Holding Berhad: PE5.14
UEM Sunrise: PE15.71
UOADEV: PE19.39
Maxim Global Berhad: PE7.34
Binastra Land Sdn Bhd: nil
SkyWorld Development Sdn Bhd: nil
 
Business
Property developer
1. development of high-rise residential properties (mainly in KL)
2. Affordable housing. 

Fundamental
1.Market: Main Market
2.Price: RM0.50 
3.Forecast P/E:  17.06 @ RM0.0293
4.ROE(Pro Forma III):  11.39
5.ROE:  29.49%(FYE2021), 38.24%(FYE2020), 84.19%(FYE2019)
6.Net asset: RM0.23
7.Total debt to current asset IPO: 01967  (Debt: 193.797mil, Non-Current Asset:  17.001mil, Current asset: 985.056mil)
8.Dividend policy: 30% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE31oct): RM302.011 mil (Eps: 0.0258), PAT: 30.49%
2021 (FYE 31Dec): RM563.691 mil (Eps: 0.0293),PAT: 19.33%
2020 (FYE 31Dec): RM588.067 mil (Eps: 0.0253),PAT: 16.83%
2019 (FYE 31Dec): RM472.806 mil (Eps: 0.0369),PAT: 28.47%

Operating cashflow vs PBT
FPE2022: 1.01%
2021: 107.06%
2020: 31.19%
2019: 25.01%

Major customer (2021)
Did not have major customer (customer is individual buyer or companies buy on one unit or small number of unit). 

Major Sharesholders

1.Gan Kah Siong: 15.74% (direct), 37.49% (indirect)

2.Gan Tiong Kian: 7.5% (direct), 2.25% (indirect)

3.Gan Kok Peng: 7.5% (direct)

4.Cengal 2020 Sdn Bhd: 37.49% (direct)

5.Java Citarasa Sdn Bhd: 2.25%

6.Tambun Team Sdn Bhd: 1.12%

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)

Total director remuneration: RM2.723mil

key management remuneration: RM1.1mil – RM1.3mil

total (max): RM 4.023mil or  2.26%

Use of funds

1.Acquisition of landbank and/or development expenditure: 39.4%

2.Repayment of bank borrowings: 21.63%

3.Hotel construction: 25.18%

4.Working capital: 9.18%

5.Estimated listing expenses: 4.61%

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

Overall the industry itself is expected not going to have high growth within 1-3 years. Is consider an overvalued IPO. 

*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.

Autocount Dotcom Berhad (Like & follow facebook link)

New IPO: Autocount Dotcom Berhad

Let's we play some game this round.

1. If our facebook like & follow break 1,000 follower, we will publish immediately the IPO detail.

2. if not able to break 1,000 follower & like, then will publish at final date of IPO application.

AUTOCOUNT DOTCOM BERHAD

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opinion and reader should take their own risk in investment decision.

Open to apply: 14 Apr 2023
Close to apply: 25 Apr 2023
Balloting: 27 Apr 2023
Listing date: 09 May 2023

Share Capital
Market cap: RM181.665mil
Total Shares: 550.500mil shares

Industry CARG (2019-2021)
Accounting software licences CAGR: 14.84%
POS system: 9.27%
Payroll system: 13.8%
Competitor Comparison (Profit after Tax PAT%)
AutoCount: 35.75%
Access Software Sdn Bhd: 21.54%
E Stream MSC Sdn Bhd: 49.54%
Smart-Acc Solution Sdn Bhd: 7.22%
Asian Business Software Solution Sdn Bhd: 5.04%
QNE Software Sdn Bhd: 13.25%
Intuit Inc: 16.26%

Xero Limited: -0.91%

Business (FYE 2021)
Development and distribution of financial management software comprising accounting, POS and payroll under “AutoCount” brand.
Revenue by Geo
Malaysia: 80.65%
Singapore: 18.72%
Others: 0.63%

Fundamental
1.Market: Ace Market
2.Price: RM0.33
3.P/E: 13.15 @ RM0.0251
4.ROE(Pro Forma III): 27.54%
5.ROE: 63.89%(FYE2022), 125.25%(FYE2021), 35.64%(FYE2020), 40.51%(FYE2019)
6.Net asset: RM0.09
7.Total debt to current asset after IPO: 0.30 (Debt: 15.639mil, Non-Current Asset: 14.078mil, Current asset: 51.824mil)
8.Dividend policy: Didn't have formal dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE 31Dec): RM38.717 mil (Eps: 0.0251),PAT: 35.75%
2021 (FYE 31Dec): RM29.483 mil (Eps: 0.0182),PAT: 34.02%
2020 (FYE 31Dec): RM19.638 mil (Eps: 0.0104),PAT: 29.11%
2019 (FYE 31Dec): RM18.891 mil (Eps: 0.0076),PAT: 22.14%

Operating cashflow vs PBT
2022: 93.51%
2021: 95.25%
2020: 127.46%
2019: 87.14%

Major customer (2023)
1. Ingenious Business Software Pte Ltd: 5.30%
2. Creative eWorld Pte Ltd: 2.39%
3. Accountsoft Enterprise Sdn Bhd: 2.38%
4. Asiacare Service & Marketing Sdn Bhd: 2.20%
5. SC Biz Solutions (Sabah) Sdn Bhd: 1.98%
***total 14.25%

Major Sharesholders
1. Choo Chin Peng: 30.76%
2. Choo Yan Tiee: 30.76%
3. Lim KIm Seng: 4.37%
4. Ng Boon Thye: 4.37%

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)
Total director remuneration: RM1.943mil
key management remuneration: RM0.90mil - RM1.050mil
total (max): RM2.993mil or 9.67%

Use of funds
1. Regional expansion: 56.19%
2. R&D: 16.86%
3. Working capital: 14.32%
4. Listing Expenses: 12.63%

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 high growth business and discounted offer price to go IPO. 

*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.

OPPSTAR BERHAD

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

Open to apply: 22 Feb 2023
Close to apply: 03 Mar 2023
Balloting: 07 Mar 2023
Listing date: 15 Mar 2023

Share Capital
Market cap: RM400.806mil
Total Shares: 636.200mil shares

Industry CARG (2017-2022)
Semiconductor sales (Global), 2016-2022(e): 9.37%
IC design sales (Global), 2016-2022(e): 8.83%
Industry competitors comparison (net profit%)
Oppstar Group: 32.89%
UST Global (Malaysia) Sdn Bhd (part of UST group of companies):10.94%
Key ASIC Berhad: -63.58%
Infinecs Systems Sdn Bhd: 14.22%
Symmid Corporation Sdn Bhd: -51.23%
Aricent Technologies Malaysia Sdn Bhd (part of Capgemini group of companies): -0.63%
IC Microsystems Sdn Bhd: -92.18%
Other global industry player: 0.62% to 15.28%

Business (FYE 2021)
IC design services covering front-end design, back-end design and complete turnkey solutions.
- mainly focus on the design of ICs such as ASICs, SoCs, CPUs and FPGAs.
- Post-silicon validation services, training and consultancy services
Revenue by Geo
Local: 23.59%
Oversea: 76.41%

Fundamental
1.Market: Ace Market
2.Price: RM0.63
3.P/E: 19.33 @ RM0.0163 (FYE2023, 6mths)
4.ROE(Pro Forma III): 8.19%
5.ROE: 83.35%(FYE2023), 115%(FYE2022), 254%(FYE2021), 31.28%(FYE2020)
6.Net asset: RM0.43
7.Total debt to current asset after IPO: 0.058 (Debt: 7.925mil, Non-Current Asset: 3.039mil, Current asset: 134.846mil)
8.Dividend policy: PAT 25% dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 30Sep, 6mths): RM28.815 mil (Eps: 0.0163),PAT: 36.08%
2022 (FYE 31Mar): RM50.561 mil (Eps: 0.0261),PAT: 32.89%
2021 (FYE 31Mar): RM29.262 mil (Eps: 0.0123),PAT: 26.65%
2020 (FYE 31Mar): RM15.965 mil (Eps: 0.0007),PAT: 2.64%

Operating cashflow vs PBT
2023: 83%
2022: 75%
2021: 100%
2020: 113%

Order Book
FYE 2023: RM13.064 mil  
FYE 2024: RM21.228 mil 

Major customer (2023)
1. Xiamen KirinCore: 62.67%
2. Customer A group of companies: 12.33%
3. Customer E group of companies: 9.98%
4. Customer B: 7.17%
5. Synkom Co.Ltd: 3.09%
***total 95.24%

Major Sharesholders
1. Ng Meng Thai: 20.06% (direct)
2. Cheah Hun Wah: 21.09% (direct)
3. Tan Chun Chiat: 13.40% (direct)
4. Bigcore Techonology: 3.34% (direct)

Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM2.176mil
key management remuneration: RM1.20mil - RM1.35mil
total (max): RM3.526mil or 20.76% amend typo to 11.70%

Use of funds
1. Business expansion through expansion of workforce: 47.96%
2. Establishment of new offices : 23.98%
3. R&D expenditure: 11.51%
4. Working capital: 12.14%
5. Listing Expenses: 4.41%

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 fair IPO with high growth opporunities. But investor need take note on the high depend of single China company which contribute 62.67% of their revenue. 

*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.

CAPE EMS BERHAD

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

Open to apply: 16/02/2023
Close to apply: 27/02/2023 Amend typo 24/02/2023 (retail)
Price determination: 27/02/2023 
Balloting: 01/03/2023
Listing date: 10/03/2023

Share Capital
Market cap: RM830.7mil
Total Shares: 923mil shares

Industry CARG (2017-2021)
Global exports of E&E products: 7.5%
Global import of E&E products: 7.2%
Industry competitors comparison (net profit%)
Cape Group: 7.6% (PE25.28 is use FYE2022 PAT)
JHM: 11.5% (PE14.66)
Plexus Manufacturing S/B: 11.1%
Benchmark Electronics (M) S/B: 12.8%
NationGate Holdings Bhd: 7.8% (PE21.22)
SKP Resources Bhd: 7.5% (PE14.34)
P.I.E. Industrial Bhd: 5.9% (PE18.62)

Others: -4.6% to 5.7%

Business (FYE 2021)
EMS provider on contract manufacturing services for end-to-end manufacturing services which entail parts and components sourcing and procurement, production, assembly, testing, packaging up to direct shipment fulfilment

Revenue by Segment
1. Industrial electronic products: 58.8%
2. Consumer electronic products: 38.0%
3. Supporting services: 3.2%
Revenue by Geo
1. Asia Pacific: 37.8% (Singapore: 30.7%)
2. USA: 55.1%
3. Europe: 7.1%

Fundamental
1.Market: Main Market
2.Price: RM0.90 (will follow final insti price@27/02/2023)
3.P/E: 25.28 @ RM0.0285 (prospecture pg27 use FYE21 PE31.6, we use EPS RM0.0356 @ FYE22)
4.ROE(Pro Forma III): 10.06%
5.ROE: 18.07%(FYE2022), 15.49%(FYE2021), 24.86%(FYE2020), 18.17%(FYE2019)
6.Net asset: RM0.35
7.Total debt to current asset after IPO: 0.75 (Debt: 282.094mil, Non-Current Asset: 230.615mil, Current asset: 377.704mil)
8.Dividend policy: 30% PAT dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE 30sep, 6mths): RM319.750 mil (Eps: 0.0267),PAT: 7.7%
2021 (FYE 31Dec): RM344.334 mil (Eps: 0.0285),PAT: 7.6%
2020 (FYE 31Dec): RM168.261 mil (Eps: 0.0219),PAT: 12.0%
2019 (FYE 31Dec): RM43.157 mil (Eps: 0.0041),PAT: 8.8%

Operating cashflow (before tax) vs PBT
2022: 14.66% (trade receivable: RM122mil)
2021: 135% (trade receivable: RM82mil)
2020: -7.74% (trade receivable: RM80mil)
2019: 405% (trade receivable:RM54mil)

Major customer (2022)
Customer A (USA): 27.1%
Tastar Electronics (SG): 19.8%
Airspan group of companies: (USA & UK): 18.4%
NextCentury (USA): 12.6%
K&Q (SG): 10.9%
***total 88.8%

Major Sharesholders
Tee Kim Chin: 40.6% (direct)
Tee Kim Yok: 13.8% (direct)
Fortress: 16.6% (direct)

Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM5.098mil
key management remuneration: RM1.250mil - RM1.450mil
total (max): RM7.998mil or 19.09%

Use of funds
1. Construction of New Senai 226 Warehouse and installation of automated storage facilities: 34.1%
2. Setting-up of new cleanroom facility and purchase of new automated production lines for EMS operations: 40.3%
3. Installation of energy saving cooling system: 2.4%
4. Purchase of new machinery and equipment for die cast manufacturing related services: 3%
5. Working capital: 13.2%
5. Listing Expenses: 7.0%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall slightly expensive IPO with the PE above industry average. However, with the new production line will encourage the grow of their revenue.

*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.

TT VISION HOLDINGS BERHAD

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

Open to apply: 29/12/2022
Close to apply: 06/01/2023
Balloting: 10/01/2023
Listing date: 18/01/2023

Share Capital
Market cap: RM159.12mil
Total Shares: 468mil shares

Industry CARG (2017-2021)
Global semiconductor sales CAGR: 7.8%
Global optoelectronic sales: 5.7%
Global solar cell and module production: 23.2%
Global semiconductor manufacturing equipment sales: 16%
Industry competitors comparison (net profit%)
TTVHB: 17.6% (PE15.19)
Vitrox: 24.9% (PE36.44)
Penta: 22.7% (PE39.33)
Mi: 16% (PE18)
Genetec: 26% (PE21.69)
AT: -163.7% (PE-0.59)
Aimflex: 6.2% (PE15.15)
Visdynamics: 20.1% (PE9.71)
MMSV: 21.7% (PE13.3)
QES: 14.5% (PE20.87)

Business (FYE 2021)
Development and manufacturing of machine vision equipment and provision of related products and services.
(Use of product: optoelectronics, solar cells, discrete components and ICs, as well as used in vision guided robotic equipment)
Revenue by Geo
Malaysia: 24.42%
China: 73.45%
Others: 2.13%

Fundamental
1.Market: Ace Market
2.Price: RM0.34
3.P/E: 15.19 @ RM0.0224
4.ROE(Pro Forma III): 12.45%
5.ROE: 17.99%(FYE2022), 15.88%(FYE2021), 41.05%(FYE2020), -10.11%(FYE2019)
6.Net asset: RM0.18
7.Total debt to current asset after IPO: 0.32 (Debt: 23.244mil, Non-Current Asset: 35.224mil, Current asset: 72.111mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE 30Jun, 6mths): RM27.358 mil (Eps: 0.0112),PAT: 19.00%
2021 (FYE 31Dec): RM47.264 mil (Eps: 0.0180),PAT: 17.64%
2020 (FYE 31Dec): RM24.927 mil (Eps: 0.0039),PAT: 6.08%
2019 (FYE 31Dec): RM20.660 mil (Eps: -0.0092),PAT: -20.91%
***EPS here used cal based on 468mil shares (prospecture book use 385mil shares, pg15)

Operating cashflow vs PBT
2022: -15.73%
2021: 27.6%
2020: 271%
2019: -92.37%

Major customer (2022)
1. Shenzhen Brightsemi Technology Co., Ltd./China: 43.1%
2. Customer B/China: 20.52%
3. Dominant Opto / Malaysia: 13.76%
4. Shanghai Xingyin Electronic Technology Co. Ltd./China: 5.56%
5. Customer group A/ China and Malaysia: 5.55%
***total 88.49%

Major Sharesholders
Goon Koon Yin: 21.51% (direct)
Wong Yih Hsow: 21.51% (direct)
Jennie Tan Yen-Li: 2.48% (direct)
Tan Oon Pheng: 2.48% (direct)

MTDC (Khazanah wholly-owned subsidairy): 23.47% (direct)

Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM1.522mil
key management remuneration: RM0.904mil - RM1.10mil
total (max): RM2.622mil or 13.32%

Use of funds
1. Repayment of bank borrowings: 20.88%
2. R&D expenditure: 27.85%
3. Marketing activities: 2.96%
4. Working capital requirements: 37.17%
5. Listing Expenses: 11.14%

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 sunrise industry IPO. However semicond industry is a cyclical industry, current situation is semicond turning into oversupply, the industry will get back to better after oversupply over turn into supply shortage. 

*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.