Initial Public Offering (IPO): INFOLINE TEC GROUP 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: 20/06/2022
Close to apply: 28/06/2022
Balloting: 01/07/2022
Listing date: 13/07/2022

Share Capital
Market cap: RM116.233 mil
Total Shares: 363.229 mil shares
 
Industry & Competitor (PAT%)

CAGR (IT infrastructure industry size in Msia): 9% (2016-2021)
CAGR (IT infrastructure industry size in PRC): 18% (2016-2021)
CAGR (Cybersecurity Industry size in M’sia): 13.1% (2016-2021) 
CAGR (Cybersecurity Industry size in PRC): 18.2% (2016-2021)
Infoline Tec: 17.50%
Cloudpoint Solution S/B: 16.26%
Sarawak Information Systems S/B: 12.49%
others: -27.64% to 7.64%

Business (FPE 2022)
Providing IT infrastructure solutions, cybersecurity solutions, managed IT and other IT services, and trading of ancillary hardware and software.
Revenue by Geo (2021)
Msia: 64.2%
PRC (China): 18.5%
Others: 17.3%

Fundamental
1.Market: Ace Market
2.Price: RM0.32
3.P/E: 15.2 @ 0.021
4.ROE(Pro Forma III): 25.06% (ProForma)
5.ROE: 43.52%(FYE2021), 71.5%(FYE2020), 84.19%(FYE2019), 72.3%(FYE2018)
6.NA after IPO: RM0.22
7.Total debt to current asset after IPO: 0.25 (Debt: 11.907mil, Non-Current Asset: 1.408mil, Current asset: 47.603mil)
8.Dividend policy: 30% PAT dividend policy. 


Past Financial Performance (Revenue, Earning Per shares, PAT%)

2021 (FYE 31Dec): RM44.586 mil (Eps: 0.0215),PAT: 17.50%
2020 (FYE 31Dec): RM43.815 mil (Eps: 0.0194),PAT: 16.10%
2019 (FYE 31Dec): RM31.058 mil (Eps: 0.0105),PAT: 12.20%
2018 (FYE 31Dec): RM18.838 mil (Eps: 0.0084),PAT: 16.10%
 
Major customer (2021)
1. Dell groups of companies: 54.7%
2. PT Netware Digital Media: 11.3%
3. Bank Pertanian Group of companies: 4.0%
4. Trianglo S/B: 3.7%
5. Noblecom Technology S/B: 2.6%
***total 76.3%

Major Sharesholders:
Choo Wei Chuen : 54.56%
Loo Wai Hong : 14.99%
 
Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM2.047 mil
key management remuneration: RM0.45 mil – RM0.550 mil
total (max): RM2.597.24%  mil or 15.24%  
 
Use of fund
1. Setting up of technology centre and disaster recovery centre: 35.73%
2. Enchancement of NOC: 18.16%
3. Setting up of a SOC: 19.85%
4. Buiness expansion: 9.37%
4. Listing Expenses: 16.89%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is a fast growing industry IPO with high demand industry. Kindly refer to above Business growth chart & SWOT chart. 

*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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