COSMOS TECHNOLOGY INTERNATIONAL BERHAD

Republished By Plato

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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: 14/09/2022
Close to apply: 22/09/2022
Balloting: 27/09/2022
Listing date: 06/10/2022

Share Capital
Market cap: RM89.775 mil
Total Shares: 256.501mil shares

Industry CARG
Industry CARG is not enough information for analysis.
Competitor Comparison (PAT %)
Cosmos: 11.8%
Cergas Proses S/B: 3.2%
Delta Ferdana S/B: -4.2%
Mimtech Technology S/B: 4.0%
Premier water services S/B: 9.5%
SVS Engineering S/B: 9.7%
S.Kian Seng S/B: 31.0%

Business (FYE 2022)
Distribution and instrumentation services of fluid control products and manufacturing of fabricated metal products for industrial applications used in the water, wastewater and oil and/or gas industries.

Fundamental
1.Market: Ace Market
2.Price: RM0.35
3.P/E: 15,51 @ RM0.0226
4.ROE(Pro Forma III): 12.14%
5.ROE: 21.80%(FYE2022), 26.91%(FYE2021), 8.03%(FYE2020), 45.97%(FYE2019)
6.NA after IPO: RM0.16
7.Total debt to current asset after IPO: 0.3895 (Debt:17.809mil, Non-Current Asset: 19.755mil, Current asset: 45.718mil)
8.Dividend policy: no formal dividend policy.
9. Shariah starus: –

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 30Apr): RM49.120 mil (Eps: 0.0226),PAT: 11.78%
2021 (FYE 30Apr): RM33.723 mil (Eps: 0.0218),PAT: 16.57%
2020 (FYE 30Apr): RM25.189 mil (Eps: 0.0047),PAT: 4.84%
2019 (FYE 30Apr): RM44.078 mil (Eps: 0.0206),PAT: 11.98%

Major customer (2022)
1. NOV (Malaysia) Sdn Bhd: 18.01%
2. National Oilwell Varco Inc: 15.63%
3. NOV Process & Flow Technologies Malaysia Sdn Bhd: 15.50%
4. Air Selangor: 9.84%
5. M8 Machinery Sdn Bhd: 7.90%
***total 66.88%

Major Sharesholders
Dato’Chong: 40.5% (direct)
MSM” 27% (direct)

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)
Total director remuneration: RM1.0095mil
key management remuneration: RM0.300 mil – 0.60mil
total (max): RM1.6095 mil or 11.79%

Use of funds
1. Acquisition of new building: 44.56%
2. Purchase of new machineries: 15.59%
3. Repayment of bank borrowing: 6.68%
4. Working capital: 19.80%
3. Listing Expenses: 13.37%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)

Overall, a bit risky investment business. The demand of the business product is very specific segment. The company business also not easy to grow faster like other business.

*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.