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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
Close to apply: 06/01/2022
Listing date: 20/01/2022
Market Cap: RM119.932 mil
Total Shares: 428.331mil shares
Industry Competitor PAT
Coraza: 9.6% (PE19)
Frencken: 6.1% (PE18, SGX Mrk)
Kobay: 17.2% (PE60)
UWC: 26.4% (PE68)
Sheet metal fabrication, Percision machining, & sub-modular assembly.
Life science & medical devices: 18.7%
Aerospace, telecommunication and E&E: 6.9%
Revenue by Geo (2021)
1.Market: Ace Market
3.P/E: 19 (EPS:0.0147)
4.ROE(Pro Forma III): 16.97% (forecast using 6mth FPE2021)
5.ROE: 27.4%(FYE2020), 12.2%(FYE2019), 14%(FYE2018)
6.NA after IPO: RM0.15
7.Total debt to current asset after IPO: 0.969(Debt: 44.952 mil, Non-Current Asset: 62.337 mil, Current asset: 46.386 mil)
8.Dividend policy: no formal dividend policy.
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (6mths): RM43.195 mil (Eps:0.0126),PAT: 12.5%
2020: RM83.686 mil (Eps:0.0147),PAT: 7.5%
2019: RM58.594 mil (Eps:0.0080),PAT: 5.8%
2018: RM56.023 mil (Eps:0.0081),PAT: 6.2%
After IPO Sharesholding
Paul Heng Weng Seng: 48.3%
Liew Sow Ying: 19.3%
Lim Teik Hoe: 19.3% (indirect)
Directors & Key Management Remuneration for FYE2022 (from gross profit 2020)
Total director remuneration: RM0.73 mil
key management remuneration: RM0.6mil – 0.85mil
total (max): RM1.58 mil or 7.4%
Use of fund
Purchase of new machinery: 47%
Construction of factory: 19.5%
Implementation of ERP system: 3.6%
Extension of existing buidling: 4.6%
Repayment of bank borrowings: 13.9%
Listing expenses: 11.4%
1. New factory will increase 25% capicity (estimated completed by Dec2023).
Good thing is:
1. Semiconductor industry on growing stage, PE19 is acceptable.
2. ROE still above 15%.
3. Revenue growing for past 3 years.
4. Director & key management remuneration is not high.
5. IPO for expand business capacity.
The bad things:
1. The company having concentration risk on 2 customer (66%-77% trade receivable from 2018-2021).
2. Director averaging above age 60.
3. Competitor in same industry have better performance.
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is still a discount IPO compare to their competitor that get high PE in same industry. After IPO should able to back to acceptable PE30 & 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.