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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: 14/06/2022
Close to apply: 24/06/2022
Balloting: 29/06/2022
Listing date: 07/07/2022
Share Capital
Market cap: RM389.220 mil
Total Shares: 518.960 mil shares
Industry & Competitor (PAT%)
Export volume of block rubber (Malaysia 2018-2021): 1.03-1.09 mil MTS
Seng Fong Group: 4.51%
Tiong Huat Rubber: 4.27%
FGV rubber: -1.93%
Seng Hin Rubber: 1.62%
MARDEC Processing: -7.45%
Hock Hin Rubber: 0.52%
Others: -1.54% to 1.72%
Business (2021)
Processing of cup lump rubber into block rubber
Revenue by Geo
China: 46.5%
HK: 20.3%
S’pore: 31%
Taiwan: 0.8%
Others: 1.4%
Fundamental
1.Market: Main Market
2.Price: RM0.75
3.P/E: 11.2 @ EPS0.067
4.ROE(Pro Forma III): 22.99% (ProForma)
5.ROE: 39.41%(FYE2021), 16.8%(FYE2020), 14.5%(FYE2019)
6.NA after IPO: RM0.45
7.Total debt to current asset after IPO: 0.409 (Debt: 108.203mil, Non-Current Asset: 50.386mil, Current asset: 264.387mil)
8.Dividend policy: 50% PAT dividend policy.
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FPE 31Dec, 6mths): RM400.490 mil (Eps: 0.0350),PAT: 4.5%
2021 (FYE 30Jun): RM768.177 mil (Eps: 0.0670),PAT: 4.5%
2020 (FYE 30Jun): RM616.435 mil (Eps: 0.0260),PAT: 2.1%
2019 (FYE 30Jun): RM636.834 mil (Eps: 0.0280),PAT: 2.3%
Major customer (2021)
1. R1 International Pte Ltd : 29.3%
2. Jiangsu General Science Technology Co., Ltd: 21.7%
3. Shandong Xinghongyuan Tyre Co.Ltd: 15.2%
4. Westwater Group: 14.1%
5. Wanli Groupp: 10.7%
total top 5 customer is 91% (2021)
Major Sharesholders:
Sumber Panji: 59.3% (Direct)
Er Hock Lai: 59.3% (Indirect)
Er Tak Bin: (Direct)
Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM3.374 mil
key management remuneration: RM0.60 mil – RM0.80 mil
total (max): RM4.174 mil or 0.565%
Use of fund
1. Working capital: 28.9%
2. Repayment bank borrowing: 55.6%
3. Install of Biomass system: 9.2%
6. Listing Expenses: 6.3%
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is not a good IPO. More info refer to the SWOT analysis 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.