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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: 18 June 2024
Close to apply: 05 July 2024
Balloting: 11 July 2024
Listing date: 22 July 2024
Close to apply: 05 July 2024
Balloting: 11 July 2024
Listing date: 22 July 2024
Share Capital
Market cap: RM225.547 mil
Total Shares: 1.025 bil shares
Market cap: RM225.547 mil
Total Shares: 1.025 bil shares
Industry CARG
Sales Value of Fabricated Metal Products 2019-2023 : 2.7%
Sales Value of Metal Roofing Sheets: 5.4%
Sales Value of Trusses: -7.1%
Sales Value of Equipment for Scaffolding, Shuttering, Propping and Pit-propping of Iron or Steel: -18.4%
Sales Value of the Manufacturing Industry 2019-2023 (Constructions, manufacturing) : -.1.9% & 6.7%
Industry competitors comparison (net profit%)
1. BWYS Group: 7.2% (PE12.94)
2. Ajiya Bhd: 18.3% (recent PE in losses)
3. SKB Shutters Corporation Berhad: 13.4% (PE6.05)
4. Astino Bhd: 4.6% (PE8.29)
5. Others: -9.9% to 19.7%
Business (FYE 2023)
Manufacturing of sheet metal products and supply of scaffoldings
Revenue segments
1. Manufacture of sheet metal products: 73%
2. Supply of scaffoldings : 24.9%
3. Trading of steel materials and steel related products: 2.1%
Manufacturing of sheet metal products and supply of scaffoldings
Revenue segments
1. Manufacture of sheet metal products: 73%
2. Supply of scaffoldings : 24.9%
3. Trading of steel materials and steel related products: 2.1%
Fundamental
1.Market: Ace Market
2.Price: RM0.22
3.Forecast P/E: 12.94 (FYE2023, EPS RM0.017)
4.ROE(Pro forma II): 8.5%
5.ROE: 11.34% (FYE2023), 19.81%(FYE2022), 23.37%(FYE2021), 3.97%(FYE2020)
6.Net asset: 0.02
7.Total debt to current asset: 0.78 (Debt: 178.098mil, Non-Current Asset: 158.122mil, Current asset: 227.568mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes
1.Market: Ace Market
2.Price: RM0.22
3.Forecast P/E: 12.94 (FYE2023, EPS RM0.017)
4.ROE(Pro forma II): 8.5%
5.ROE: 11.34% (FYE2023), 19.81%(FYE2022), 23.37%(FYE2021), 3.97%(FYE2020)
6.Net asset: 0.02
7.Total debt to current asset: 0.78 (Debt: 178.098mil, Non-Current Asset: 158.122mil, Current asset: 227.568mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Dec): RM246.078 mil (Eps: 0.0170), PAT: 7.2%
2022 (FYE 31Dec): RM236.231 mil (Eps: 0.0230), PAT: 10.0%
2021 (FYE 31Dec): RM222.435 mil (Eps: 0.0240),PAT: 11.2%
2020 (FYE 31Dec): RM130.864 mil (Eps: 0.0030),PAT: 2.5%
2023 (FYE 31Dec): RM246.078 mil (Eps: 0.0170), PAT: 7.2%
2022 (FYE 31Dec): RM236.231 mil (Eps: 0.0230), PAT: 10.0%
2021 (FYE 31Dec): RM222.435 mil (Eps: 0.0240),PAT: 11.2%
2020 (FYE 31Dec): RM130.864 mil (Eps: 0.0030),PAT: 2.5%
Impairment Losses
1. 2020: 1.8% (RM0.6mil)
2. 2021: 7.6% (RM2.9 mil)
3. 2022: 2.7% (RM1.1 mil)
4. 2023: 2.4% (RM1.3mil)
1. 2020: 1.8% (RM0.6mil)
2. 2021: 7.6% (RM2.9 mil)
3. 2022: 2.7% (RM1.1 mil)
4. 2023: 2.4% (RM1.3mil)
Major customer (FYE2023)
1. Inspec Engineering Systems Sdn Bhd : 4.7%
2. United Material Handling Inc: 4.1%
3. Yes Group: 1.9%
4. SKS Builders Trading Sdn Bhd: 1.7%
5. China Communication Construction (ECRL) Sdn Bhd: 1.5%
***total 13.9%
1. Inspec Engineering Systems Sdn Bhd : 4.7%
2. United Material Handling Inc: 4.1%
3. Yes Group: 1.9%
4. SKS Builders Trading Sdn Bhd: 1.7%
5. China Communication Construction (ECRL) Sdn Bhd: 1.5%
***total 13.9%
Major Sharesholders
1. Kang Beng Hai: 65.20% (direct)
1. Kang Beng Hai: 65.20% (direct)
Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM2.325 mil
key management remuneration: RM1.30 mil – RM1.45mil
total (max): RM3.775 mil or 7.45%
(from Revenue & other income 2023)
Total director remuneration: RM2.325 mil
key management remuneration: RM1.30 mil – RM1.45mil
total (max): RM3.775 mil or 7.45%
Use of funds (MYR)
1. Construction of New Penang Factory: 22.840 mil, 40.4%
2. Purchase of new machinery and equipment: 7.716 mil, 13.7%
3. Implementation of new ERP system, production and inventory management systems: 10.831 mil, 19.2%
4. Repayment of bank borrowings: 4 mil, 7.1%
5. Working Capital: 5.5 mil, 9.8%
6. Estimated listing expenses: 5.5 mil, 9.8%
1. Construction of New Penang Factory: 22.840 mil, 40.4%
2. Purchase of new machinery and equipment: 7.716 mil, 13.7%
3. Implementation of new ERP system, production and inventory management systems: 10.831 mil, 19.2%
4. Repayment of bank borrowings: 4 mil, 7.1%
5. Working Capital: 5.5 mil, 9.8%
6. Estimated listing expenses: 5.5 mil, 9.8%
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is high risk investment, as debt level is quite high & it will effected business PAT performance.
*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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- Source: http://lchipo.blogspot.com/2024/06/bwys-group-berhad.html
