IPO'S

Initial Public Offering (IPO): MN Holding 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: 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.



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