CapitalA-LA Case study

In our investment journey, it is impossible to everytime buy now and immediately profit next second. Even if can, but how BIG amount we can confidence to buy in. Some investment we need take few years to see actual BIG profit, and this type of investment confidence that allow us to invest BIG, is FUNDAMENTAL study. Hold for years and one-off harvest BIG profit.

All this 3 years, was have a lot member ask : "Still can keep or not", "why it keep dropping"....actually i also don't how to answer....

In investment journey, only keep study and focus on fundamental will give us confidence to continue hold the shares until we can harvest the actual BIG profit. Congratulation to all members, even market drop you still make good profit.  

SUPREME CONSOLIDATED RESOURCES BERHAD

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Open to apply: 28/10/2024
Close to apply: 15/11/2024
Balloting: 19/11/2024
Listing date: 29/11/2024

Share Capital 
Market cap: RM107.5 mil
Total Shares: 430 mil shares
1st day listing tradable shares: 154.6 mil shares

Industry CARG
(i) 2018-2022
GDP of wholesale and retail trade, food and beverage and accommodation services in Sarawak: 1.9816%
Distribution of food, beverage and discretionary products in Sarawak: 1.9814%
(ii) 2019-2022
Average gross household income by district in Sarawak: 2.7%
Composition of monthly household expenditure in Sarawak: 4.4%
Industry competitors comparison (net profit%)
1. Supreme: 4.6%
2. Spritzer Berhad: 10.1% (not suitable for comparison purpose)
3. SDS Group Berhad: 10.0% (not suitable for comparison purpose)
4. Farm Fresh: 7.8% (not suitable for comparison purpose)
5. Others: -30.2% to 5.0%

Business (FYE 2024)  
Distribution of third-party brands as well as our own brands of Frozen and Chilled Food Products, Ambient F&B Products and Non-F&B Products. 
Revenue by Segment
Frozen and Chilled Food Products: 88.42%
Ambient F&B Products: 11.50%
Non-F&B Products: 0.08%
Revenue by Geo
Malaysia (Sarawak): 97.99%
Malaysia (Sabah): 0.41%
Mynmar: 1.6%

Fundamental 
1.Market: Ace Market
2.Price: RM0.25
3.Forecast P/E: 11.90
4.ROE(Pro forma III): 10.3%
5.ROE: 11.76% (FPE2024), 10.49%(FYE2023), 9.93%(FYE2022), 9.86%(FYE2021)
6.Net asset: nil
7.Total debt to current asset: 0.478 (Debt: 47.347mil, Non-Current Asset:  52.889mil, Current asset: 99.096mil)
8.Dividend policy: Didn’t have formal dividend policy.
9. Shariah status: Shariah

Past Financial Performance (Revenue, Earning Per shares, PAT%)   
2024 (FPE 30Apr, 7mths): RM132.695 mil (Eps: 0.0146), PAT: 4.74%
2023 (FYE 30Sep): RM199.643 mil (Eps: 0.0214), PAT: 4.62%
2022 (FYE 30Sep): RM209.953 mil (Eps: 0.0190), PAT: 3.89%
2021 (FYE 30Sep): RM187.502 mil (Eps: 0.0178), PAT: 4.08%
***Our reviewer refuse to follow Prospectus book using EPS @ 120mil shares (pg 301).
***Above suggested EPS based on 430 mil shares. 

Major customer (2024)   
1. Unaco Group: 7.64%
2. Emart Group: 5.39%
3. Group A: 2.69%
4. MFM Resources Sdn Bhd: 2.6%
5. Supreme Food Supply (Bintulu) Sdn Bhd: 2.35%
***total 20.67%

Major Sharesholders  
1. BNDM: 34.05% (direct)
2. Dato Richard Wee: 0.49% (direct), 34.24% (indirect)
3. Lim Ah Ted: 21.98% (direct)
4. Ting Ing Thai :  4.6% (direct)
5. Tan Chiew Ting: 6.28% (direct)

Directors & Key Management Remuneration for FYE2024  
(from Revenue & other income FYE2023)
Total director remuneration: RM1.561 mil
key management remuneration: RM1.90 mil – RM2.25 mil
total (max): RM3.811 mil or 15.97%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is middle risk investment with low grow rate business. 

*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.

METRO HEALTHCARE BERHAD

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Open to apply: 24/10/2024
Close to apply: 04/11/2024
Balloting: 07/11/2024
Listing date: 15/11/2024

Share Capital 
Market cap: RM293.6715 mil
Total Shares: 978.905 mil shares

Industry CARG  
Fertility, obstetrics and gynaecology services industry size in Malaysia (2018-2023): 14.2% 
Industry competitors comparison (net profit%)
1. Metro Group: 14.0%
2. Alpha IVF Group Berhad: 39.8%
3. Sihat Kinabalu Sdn Bhd: 27.5%
4. KL Fertility & Gynaecology Centre Sdn Bhd: 26%
5. IVF Technologies Sdn Bhd: 17.3%
6. Others: 8% to 24%

Business (FPE 2024) 
Obstetrics and gynaecology (O&G) healthcare service provider, specialising in providing fertility and other O&G healthcare services.
Revenue by segment
1. Fertility services: 46.48%
2. Other O&G healthcare services: 52.79%
3. Paediatric services: 0.73%

Fundamental  
1.Market: Ace Market
2.Price: RM0.25
3.Forecast P/E: 34.63
4.ROE(Pro forma III): 9.67%
5.ROE: 19.38 (FPE2024), % 16.72%(FYE2023),  14.23%(FYE2022), 27.49%(FYE2021)
6.Net asset: 0.0747
7.Total debt to current asset: 0.40 (Debt: 21.416mil, Non-Current Asset: 41.149mil, Current asset: 53.365mil)
8.Dividend policy: PAT 20%  dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)  
2024 (FYE 30Jun, 6mths): RM24.484 mil (Eps: 0.0036), PAT: 14.44%
2023 (FYE 31Dec): RM44.686 mil (Eps: 0.0064),PAT: 13.98%
2022 (FYE 31Dec): RM40.273 mil (Eps: 0.0051),PAT: 12.45%
2021 (FYE 31Dec): RM42.257 mil (Eps: 0.0096),PAT: 22.33%

Major customer (2024) 
Business nature is didn’t have single large customer. 

Major Sharesholders    
1. Dr Tay Swi Peng @ Tee Swi Peng: 43.30% (direct), 5.05% (indirect)
2. Dr Kong Lan Moon: 19.49% (direct)
3. Country Range Sdn Bhd: 5.05% (direct)

Directors & Key Management Remuneration for FPE2024  
(from Revenue & other income 2023)
Total director remuneration: RM1.123 mil
key management remuneration: RM0.25 mil – RM0.35 mil
total (max): RM1.473 mil or 8.1%

Use of Funds

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

Overall is middle risk & low grow 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.

LIFE WATER BERHAD

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Open to apply: 22/10/2024
Close to apply: 30/10/2024
Balloting: 04/11/2024
Listing date: 13/11/2024

Share Capital    
Market cap: RM mil
Total Shares:  473.1795 mil shares
1st day listing tradable shares: 125.953 mil shares 

Industry CARG (2019-2023)  
Sales volume of manufactured soft drinks in Malaysia : 0.9%
Sales volume of manufactured bottled water in Malaysia: 2.3%
Import of beverages in Sabah: 7.4%
Export of beverages in Sabah:  6.9%

Industry competitors comparison (net profit%)
1. Life water group: 16.9%
2. F&N Beverages Manufacturing S/B: 5.0%
3. Spritzer: 12.53% (PE13.61)
4. R O Water S/B: 18%
5. Others: losses to 7.0%

Business (FYE 2024)  
Manufacturer of beverages namely drinking water and carbonated drinks. 
Revenue by segment
Drinking water: 83.3%
Carbonated drinks: 16.49%
Other product: 0.21%
Revenue by Geo
Sabah: 98.55%
Other markets: 1.45%

Fundamental 
1.Market: Main Market
2.Price: RM0.65
3.Forecast P/E: 10.94
4.ROE(Pro forma): 15.82%
5.ROE: 23% (FYE2024) , 21.96%(FYE2023), 21.22%(FYE2022), 29.62%(FYE2021)
6.Net asset: 0.38
7.Total debt to current asset: 0.95 (Debt: 121.065mil, Non-Current Asset: 171.854mil, Current asset: 126.997mil)
8.Dividend policy:  Min 20% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)  
2024 (FYE 30 Jun): RM166.532 mil (Eps: 0.0594), PAT: 16.89%
2023 (FPE 30 Jun): RM150.962 mil (Eps: 0.0436), PAT: 13.66%
2022 (FYE 30 Jun): RM121.400 mil (Eps: 0.0333), PAT: 12.96%
2021 (FYE 30 Jun): RM103.525 mil (Eps: 0.0373), PAT: 17.06%

Major customer (FYE2024)  
1. Bataras Group: 4.99%
2. Eco Water: 2.82%
3. Mu Group: 2.26%
4. Sabanah Group: 1.77%
5. Servay Group: 1.65%
***total 13.49%

Major Sharesholders    
1. Scarecrow Holding: 36.68% (direct)
2. Liew Hen Kong: 36.68% (indirect)
3. Chin Lee Ling: 36.68% (indirect)
4. Tan Hwng Kuen: 18.35% (direct)
5. Lim Young Piau: 18.35% (direct) 

Directors & Key Management Remuneration for FYE2025  
(from Revenue & other income 2024)
Total director remuneration: RM7.630 mil
key management remuneration: RM0.90 mil – RM1.050 mil
total (max): RM8.68 mil or 10.8%

Use of funds 

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 low risk business model, and low-to-mid level of grow 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.

MEGA FORTRIS BERHAD

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Open to apply: 21/10/2024

Close to apply: 28/10/2024
Balloting: 30/10/2024
Listing date: 11/11/2024

Share Capital   
Market cap: RM566.16 mil
Total Shares:  844.97248 mil shares

Industry CARG     
Global merchandise exports and imports (2019-23): 5.8%
Global container port throughput (2018-22) : 2.2% 
Industry competitors comparison (net profit%)
1. Mega Fortris Group: 13.0%
2. Acme Seals (Malaysia) S/B: 2.9%
3. Envotech Network S/B: 32.3%
4. Wesglow Industries S/B: 13.8%
5. Unisto Identification Systems S/B: 0.3%

Business (FYE 2024)
Design and manufacturing of security seals, and trading of related products and services. 
Revenue by Distribution
1. Transportation and logistics: 16.03%
2. Petrochemicals and manufacturing: 16.03%
3. F&B and agriculture: 16.27%
4.Retail: 7.55%
5. Leisure, hospitality and gaming: 9.29%
6. Government: 2.91%
7. Others: 13.24%
8. Resellers: 25.85% 
Revenue by segment
a. Design and manufacturing
    (i) Plastic seals: 39.28%
    (ii) Container seals: 13.34%
    (iii) Cable seals: 18.04%
    (iv) Security bags: 2.50%
b. Trading and related services
    (i) Load securement products  : 15.8%
    (ii) Other related products and services: 11.04%
Revenue by Geo
1. Asia Pacific: 37.84%
2. Americas: 26.99%
3. Europe: 29.74%
4. Middle East: 5.43%

Fundamental    
1.Market: Main Market
2.Forecast Price: RM0.67
3.Forecast P/E: 29.13 (PE range is possible overvalued zone)
4.ROE(Pro forma II): 9.16%
5.ROE: 15.57% (FYE2024), 13.16%(FYE2023),  7.34%(FYE2022), 12.68%(FYE2021)
6.Net asset: 0.25
7.Total debt to current asset: 0.53 (Debt: 124.664mil, Non-Current Asset: 103.944mil, Current asset: 234.207mil)
8.Dividend policy: up to 30% PAT dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)   
2024 (FYE 30 Jun): RM166.712 mil (Eps: 0.0225), PAT: 12.96%
2023 (FYE 30 Jun): RM161.303 mil (Eps: 0.0148), PAT: 9.86%
2022 (FYE 30 Jun): RM155.211 mil (Eps: 0.0052), PAT: 4.49%
2021 (FYE 30 Jun): RM135.098 mil (Eps: 0.0071),PAT: 3.37%

Major customer (FYE 2024)     
1. Interseal S.A. de C.V.: 4.42%
2. MFIB: 3.23%
3. Mega Fortris Philippines Inc: 2.85%
4. United States Postal Service: 2.54%
5. Flink S.A.C : 2.14%
***total 15.18%

Major Sharesholders   
1. Mega Fortris Global: 65% (direct)
2. Dato’ Nick Ng (Dato’ Ng Meng Kee): 65% (indirect)
3. Datuk Adrian Ng (Datuk Ng Meng Poh): 65% (indirect)
4. Mega Fortis Capital: 65% (indirect)
5. Ng Brothers Estate: 65% (indirect)

Directors & Key Management Remuneration for FYE2025   
(from Revenue & other income 2024)
Total director remuneration: RM0.493 mil
key management remuneration: RM1.50 mil – RM1.65 mil
total (max): RM1.993 mil or 2.63%

Use of Funds

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Avoid this IPO. Overall is high risk & low grow 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.

AZAM JAYA BERHAD

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Open to apply: 18/10/2024

Close to apply: 24/10/2024

Balloting: 28/10/2024

Listing date: 11/11/2024

 

Share Capital

Market cap: RM390 mil

Total Shares: 500 mil shares

Industry CARG (2019-2023)

Malaysia: Value of Civil Engineering Works Done CAGR: -5.61%

Sabah: Value of Civil Engineering Works Done CAGR: 9.33%

Industry competitors comparison (net profit%)

1.      Azam Jaya: 9.3%

2.      Gabungan AQRS Berhad: 5.9%

3.      Vestland Berhad: 7.9%

4.      Pesona Metro Holdings Berhad: 2/4%

5.      Others: losses to 0.5%

Business (FPE 2024)

Specialise in the construction of road infrastructure, including roads, highways, bridges, flyovers and tunnels, business mainly in Sabah.

Revenue by Segment

Construction: 100%

 

Fundamental  

1.Market: Main Market

2.Price: RM0.78

3.Forecast P/E: 18.75 (forecast PE, we disagree to follow prospectus book PE15.01)

4.ROE(Pro forma):  13.49%

5.ROE: 16.20%(FPE2024),  29.28%(FYE2023), 41.58%(FYE2022), 62.67%(FYE2021)

6.Net asset: 0.31

7.Total debt to current asset: 0.80 (Debt: 270.013mil, Non-Current Asset: 88.333mil, Current asset: 335.975mil)

8.Dividend policy: 30% PAT dividend policy.

9. Shariah status: Yes

 

Past Financial Performance (Revenue, Earning Per shares, PAT%)  

2024 (FPE 30 Apr): RM148.824 mil (Eps: 0.0156), PAT: 5.26%

2023 (FYE 31Dec): RM280.766 mil (Eps: 0.0520), PAT: 9.25%

2022 (FYE 31Dec): RM296.838 mil (Eps: 0.0634), PAT: 10.68%

2021 (FYE 31Dec): RM231.457 mil (Eps: 0.0683), PAT: 14.77%

 

Order Book

FYE2024- 2028 : RM1.449 bil

 

Major customer (2024)  

1.      e Ministry of Works, Malaysia and JKR Sabah: 100%

***total 100%

Major Sharesholders  

1.      Lokah Fortune: 40.20% (direct)

2.      Tan Sri Joseph: 23.34% (indirect)

3.      Datuk Jonathan: 53.53% (indirect)

4.      Datuk Jessica: 10% (direct), 13.34% (indirect)

5.      Johannes Lo: 10% (direct), 13.34% (indirect)

6.      Lo Vun Yee @ Josephine Lo: 3.33% (direct), 10% (indirect)

7.      Lo Vun Jiun: 3.33% (direct), 10% (indirect)

8.      Jacqueline Lo Kar Jack: 3.33% (direct), 10% (indirect)

9.      Joanna Lo Vun Shii; 3.33% (direct), 10% (indirect)

 

Directors & Key Management Remuneration for FYE2024

(from Revenue & other income 2023)

Total director remuneration: RM13.026 mil

key management remuneration: RM1.15 mil – RM1.40 mil

total (max): RM14.426 mil or 16.79%

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 risk business as they over focus on government project/ contract. However if able to continue maintain good relationship & secure more project, the company will have potential to continue growth. 

*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.

3REN BERHAD

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Open to apply: 09/10/2024

Close to apply: 23/10/2024

Balloting: 25/10/2024

Listing date: 06/11/2024

 

Share Capital

Market cap: RM182 mil

Total Shares: 650 mil shares

1st day listing tradable shares: 232.78 mil shares

Industry CARG

1. Product engineering service revenue (M’sia, 2020-2022): 20.6%

2. Global product engineering services industry (2020-2023): 15.5%

3. Industry size for IC assembly and test services in Malaysia (2020-2023): 8.6% 

4. Global industry size for IC assembly and test services (2020-2023): 4.0%

Industry competitors comparison (net profit%)

1.    3REN Group: 12.2%   

2.    Infinecs System Sdn Bhd (inc IC test): 9.4%

3.    Nityo Infotech Services Sdn Bhd (inc IC test): 7.3%

4.    Oppstar (enginerring services): 27.3%

5.    ECA (automated equipment) : 30.3%

6.    Genetec (automated equipment): 23%

7.    Penta (automated equipment): 20.3%

8.    Others: losses to 85.4%

 

Business (FPE 2024)  

Automation solutions and engineering services provider semiconductor and electronics industry.

Revenue by segment

(a) Product engineering services: 37.22%

(b) Engineering support services for IC assembly and testing: 35.55%

(c) Design, development and sale of digitalised solutions: 18.90%

(d) Design, development and sale of automated equipment: 8.33%

Revenue by Geo

(a) Malaysia : 96.48%

(b) Overseas : 3.52%

 

Fundamental

1.Market: Ace Market

2.Price: RM0.28

3.Forecast P/E: 18.92 (FPE2024, EPS RM0.0074,

***we decided not to follow prospectus PE)

4.ROE(Pro Forma III): 10.55%

5.ROE: 14.98% (FYE2024), 19.65% (FYE2023), 20.96%(FYE2022), 32.18%(FYE2021), 32.49%(FYE2020)

6.Net asset: 0.14

7.Total debt to current asset: 0.20  (Debt: 16.695mil, Non-Current Asset: 24.2mil, Current asset: 83.09mil)

8.Dividend policy: didn’t have formal dividend policy.

9. Shariah status: YES

 

Past Financial Performance (Revenue, Earning Per shares, PAT%)

2024 (FYE 30Jun): RM45.518 mil (Eps: 0.0074), PAT: 10.5%

2023 (FYE 31Dec): RM94.891 mil (Eps: 0.0178), PAT: 12.22%

2022 (FYE 31Dec): RM103.598 mil (Eps: 0.0185), PAT: 11.62%

2021 (FYE 31Dec): RM74.164 mil (Eps: 0.0247), PAT: 21.67%

2020 (FYE 31Dec): RM63.020 mil (Eps: 0.0173), PAT: 17.85%

 

Major customer (FPE024)

1.      Intel group of companies: 69.58%

2.      KellyOCG: 15.79%

3.      Customer C: 2.46%

4.      Customer F group of companies: 2.45%

5.      Customer A: 2.20%

***total 92.48%

 

Major Sharesholders  

1.    Koh Dim Kuan : 4.31% (direct), 40% (indirect)

2.    Lee Chee Hoo : 19.88% (direct), 40% (indirect)

3.    Malaysian Technology Development Corporation Sdn Bhd (MTDC): 4.99% (direct)

4.    Low Chee Onn : 4.82% (direct)

5.    R3 Capital: 40% (direct)

6.    Khazanah: 4.99% (indirect)

Directors & Key Management Remuneration for FYE2024  

(from Revenue & other income 2023)

Total director remuneration: RM0.919 mil

key management remuneration: RM1.20 mil – RM1.45 mil

total (max): RM2.369 mil or 8.61%

Use of Fund 

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

Overall is middle risk of 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.