YEW LEE GROUP BERHAD


Copyright@http://lchipo.blogspot.com/
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: 17/05/2022
Close to apply: 25/05/2022
Balloting: 27/05/2022
Listing date: 07/06/2022

Share Capital

Market cap: RM194.082 mil
Total Shares:  532.435 mil shares
 
Industry & Competitor (PAT%)
CAGR: 2019 (-9%), 2020 (12.7%), 2021 (27.4%)
Yew Lee: 22.2%
CE Brush: 28.2%
Dragon Pathway: 7.4%
Greenheart: -3.4%
Mybrush: 17.3%
YL Industrial: 1.3%
 
Business (2021)
1. Manufacturing of industrial brushes.
2. Trading of industrial hardware and machinery parts.
Manufacturing Segment revenue: 70.3% (Msia: 47.1%, others: 23.2%)
Trading Segment revenue: 29.7% (Msia 100%)
Fundamental
1.Market: Ace Market
2.Price: RM0.28
3.P/E: 14.7 @ EPS0.019
4.ROE(Pro Forma III): 13.44% (ProForma)
5.ROE: 24.33%(FYE2021), 32.99% (FYE2020), 19.92%(FYE2019), 22.17%(FYE2018)
6.NA after IPO: RM0.14
7.Total debt to current asset after IPO: 0.09 (Debt: 5.664mil, Non-Current Asset: 19.453mil, Current asset: 61.461mil)
8.Dividend policy: Did not have fixed dividend policy. 
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2021 (FPE 30Mar): RM45.525 mil (Eps: 0.0190),PAT: 22.2%
2020 (FYE 31Dec): RM41.974 mil (Eps: 0.0195),PAT: 24.7%
2019 (FYE 31Dec): RM29.208 mil (Eps: 0.0098),PAT: 17.8%
2018 (FYE 31Dec): RM27.813 mil (Eps: 0.0095),PAT: 18.3%
Top customer (2021)
Topglove: 32.1%
Precious Mountain (Taiwan): 5.7%
Careplus: 4.6%
Latexx: 4.0%
Hartalega: 4.0%
After IPO Sharesholding
Ang Lee Leong: 53.4%
Chee Wai Ying: 8.3%
Ang Lee Seng: 8.3%
 
Directors & Key Management Remuneration for FYE2022 (from gross profit 2021)
Total director remuneration: RM2.370 mil
key management remuneration: RM0.4mil – RM0.55mil
total (max): RM2.92mil or 15.69%  
 
Use of fund
1. Purchase manufacturing machineries & equipment: 29.2%
2. Construction new warehouse facility & office building: 19.6%
3. Renovation of new office: 4.8%
4. Repayment bank borrowing: 23.9%
5. Working capital: 12.3%
6. Lisiting expenses: 10.2%
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 normal IPO. The business is in high profit margin industry.

*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.



Source link