Initial Public Offering (IPO): CENGILD MEDICAL 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: 30/03/2022
Close to apply: 05/04/2022
Balloting: 08/04/2022
Listing date: 18/04/2022

Share Capital
Market Cap: RM mil (will depend on institution price demand)
Total Shares: 818.8 mil shares
Industry & Competitor (PAT%)
Life necessity industrial. 
Cengild Medical: 9.9%
IHH: 11.4%
KPJ: 7.5%
Beacon hospital S/B: 18.1%
Thomsom Hospital: 10%
Others: -5% to 7.7% 
*refer prospecture book pg146. 
Business (2021)
Medical centre specialising in the diagnosis
and treatment of gastrointestinal, liver diseases and obesity.
Consultant services: 37%
Nursing services: 30.1&%
Clinical support services: 31.90%

1.Market: Ace Market
2.Price: RM0.33 (IF Institution price lower then 0.33 will received the bal refund).
3.P/E: 27.01
4.ROE(Pro Forma III): 11.79% (FPE2021 after IPO)
5.ROE: 72.6% (FYE2021), 40%(FYE2020), 25.3%(FYE2019), losses(FYE2018)
6.NA after IPO: RM0.10
7.Total debt to current asset after IPO: 0.37 (Debt: 31.433mil, Non-Current Asset: 31.768mil, Current asset: 84.482mil)
8.Dividend policy: estimated 25% PAT as dividend policy. 

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FPE 31oct): RM20.524 mil (Eps: 0.0037),PAT:10.7%
2021 (FPE 30Jun): RM63.470 mil (Eps: 0.0167),PAT:15.8%
2020 (FYE 30Jun): RM39.180 mil (Eps: 0.0066),PAT:10.1%
2019 (FYE 30Jun): RM28.183 mil (Eps: 0.0025),PAT:5.2%%
2018 (FYE 30Jun): RM11.679 mil (Eps: -0.0069),PAT:Losses

After IPO Sharesholding
1. Dato’ Dr Tan Huck Joo: 16.67%
2. Emeritus Professor Dato’ Dr Goh Khean Lee: 7.35%
3. Dr Mohamed Akhtar Bin Mohamed Ditali Qureshi: 7.01%
Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM5.462 mil
key management remuneration: RM5.1mil – RM5.35mil
total (max): RM10.812mil or  20.05%  
Use of fund
1.Expansion of existing medical centre: 18%
2.Estabilishing new medical centres: 51.38%
3. Working capital: 24.11%
4. Lisiting expenses: 6.51%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Is a good & attractive IPO with high growth record of business activities. PE27 is not expensive with the expand of another 2 new medical centre to boost income. 

*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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