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opinion and reader should take their own risk in investment decision.
Close to apply: 18 May 2023
Balloting: 22 May 2023
Listing date: 01 June 2023
Share Capital
Market cap: RM215 mil
Total Shares: 500 mil shares
1. Malaysia’s furniture export: 7.63%
2. Malaysia’s wood-based home furniture export: 7.13%
Industry competitors comparison (PAT%)
Synergy Group: 8.56% (PE12.93)
1. Homeriz: 16.85% (PE6.53)
2. Ecomate: 12.08% (PE38.75)
3. Pohuat: 11.95% (PE4.79)
4. Mobilia: 11.46% (PE10.41)
5. Others: -3.43% to 10.52%
1. Sell Ready-to-assemble furniture to online retailers B2B & B2C sales model.
2. Focus on the design, development and sale of RTA home furniture (do not manafucture, outsource all manufacturing works)
3. B2B salme model are branded under third party brand, B2C can either own brand & third party brand.
Revenue by Geo
1. UK: 42.4%
2. United Arab Emirates: 11.62%
3. USA: 39.01%
4. Others: 1.63%
5. Malaysia: 5.34%
1.Market: Ace Market
2.Price: RM0.43
3.Forecast P/E: 12.93 @ RM0.0332
4.ROE(Pro Forma III): 21.46%
5.ROE: 35.87% (FYE2022), 41.88%(FYE2021), 59.96%(FYE2020), 58.94%(FYE2019)
6.Net asset: RM0.28
7.Total debt to current asset IPO: 0.766 (Debt:74.595 mil, Non-Current Asset: 54.733mil, Current asset: 97.323mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes
2022 (FYE 31Dec): RM194.093 mil (Eps: 0.0332),PAT: 8.56%
2021 (FYE 31Dec): RM184.292 mil (Eps: 0.0288),PAT: 7.81%
2020 (FYE 31Dec): RM122.891 mil (Eps: 0.0242),PAT: 9.85%
2019 (FYE 31Dec): RM111.482 mil (Eps: 0.0218),PAT: 9.77%
2022: 83.49%
2021: 49.01%
2020: 30.18%
2019: 75.17%
Major customer (2022)
1. Customer C Group: 19.33%
2. Hillsdale Furniture, LLC: 17.97%
3. Shop Direct Home Shopping Limited: 16.71%
4. RNA Resources Group Limited: 11.42%
5. Studio Retail Limited: 8.13%
***total 73.56%
Major Sharesholders
Tan Eu Tah: 74% (Indirect)
Teh Yee Luen: 74% (Indirect)
SH Holdings: 74% (Direct)
Total director remuneration: RM1.886 mil
key management remuneration: RM0.65mil – RM0.75mil
total (max): RM2.636 mil or 5.69%
Use of funds
Purchase of inventories (E-commerce fulfilment centres in Muar): 29.07%
Purchase of racking system and forklifts: 4.36%
E-commerce advertising and promotions: 2.91%
Repayment of borrowings: 29.07%
Working capital: 22.38%
Estimated listing expenses: 12.21%
Overall is expensive IPO, as IPO PE still above the industry PE.
*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.