Follow us on facebook: https://www.facebook.com/LCH-Trading-Signal-103388431222067/
***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: 21/06/2022
Close to apply: 01/07/2022
Balloting: 06/07/2022
Listing date: 18/07/2022
Share Capital
Market cap: RM102 mil
Total Shares: 340 mil shares
Industry CARG
2017-2021 Palm Oil GDP CARG Msia: -2.4%
2016-2019 Palm Oil Production in Gabon: 183.3%
2017-2021 Production of Crude Palm Oil in Indonesia: 7.2%
Competitor Comparison (Net profit margin%)
Ecoscience Group: 5.3% (PE12.5)
CBIP: 15.2% (PE7.24)
MBL: 5.6% ((PE6.01)
Econmetall: 11.5% (PE3.77)
PMT Industries S/B: 9.6%
SEB: 2.8% (PE7.86%)
Others: -455.1% to 6.5%
A one-stop solution provider for the construction of palm oil mills and supporting facilities and fabrication of equipment.
-Construction of plants (18.4%) and facilities (37.9%)
-Fabrication of equipment (21.6%)
-Supply of materials and equipment (21%)
-Others activities(1.1%)
Fundamental
1.Market: Ace Market
2.Price: RM0.30
3.P/E: 12.5 @ RM0.024
4.ROE(Pro Forma III): 9.92% (ProForma)
5.ROE: 13.63%(FYE2021), 12.54%(FYE2020), 25.29%(FYE2019), 7.58%(FYE2018)
6.NA after IPO: RM0.24
7.Total debt to current asset after IPO: 0.53 (Debt: 62.248mil, Non-Current Asset: 26.933mil, Current asset: 116.631mil)
8.Dividend policy: 20% PAT dividend policy.
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FYE 31Dec): RM153.163 mil (Eps: 0.0240),PAT: 5.3%
2020 (FYE 31Dec): RM153.693 mil (Eps: 0.0190),PAT: 4.2%
2019 (FYE 31Dec): RM170.928 mil (Eps: 0.0370),PAT: 7.3%
2018 (FYE 31Dec): RM113.627 mil (Eps: 0.0230),PAT: 6.8%
Major customer (2021)
1. Olam Group: 38.2%
2. KLK Group: 16.9%
3. Customer A: 9.6%
4. Palm Tech Engineering Contruction: 7.3%
5. PT Kapuas Maju Jaya: 6.8%
***total 78.8%
Order Book
2022: RM70.139 mil
2023: RM29.452 mil
2024: RM7.367 mil
Major Sharesholders
Rajawali Wang (investment holding company): 45% (Direct)
Wong Choi Ong: 45% (indirect)
Pan Kum Wan: 48% (indirect)
Lim Siew Kuen: 4.7% (Direct)
Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM4.896 mil
key management remuneration: RM2.20 mil – RM2.45 mil
total (max): RM7.346 mil or 26.98%
Use of fund
1. Establishment of new fabrication facility and office in Indonesia: 20.3%
2. Expansion of environmental and energy efficiency business: 4.1%
3. Repayment bank borrowings: 28.4%
4. Listing Expenses: 15.4%
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 an attractive IPO.
*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.