CRITICAL HOLDINGS BERHAD

Republished By Plato

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opinion and reader should take their own risk in investment decision.

Open to apply: 27 Nov 2023
Close to apply: 05 Dec 2023
Balloting: 07 Dec 2023
Listing date: 18 Dec 2023

Share Capital
Market cap: RM130.108 mil
Total Shares: 371.739 mil shares

Industry CARG
MEP engineering industry in Malaysia CAGR (2018-2022): 14.8%
Industry competitors comparison (net profit%)
1.Critical Holding Berhad: 6.4% (PE13.57)
2.AWC Berhad: 2.8% (PE93.81)
3.Bintai: -98.6% (PN17)
4.Cabnet: 0.2% (PE25.76)
5.KAB: 1.5% (PE25.09)
6.KGB: 4.6% (PE13.36)
7.LFECORP: 2.6% (PE102.52)
8.Pasukgb: -26.80% (losses)
9.Others: -11.9% to 15.2%

Business (FYE 2023)
MEP Design & engineering solutions
(MEP: Mechanical, electrical and process utilities)
Business Segment
Plantroom: 62.66%
Cleanroom: 20.20%
Data Centre: 8.62%
MEP Maintenance & Services: 8.51%

Fundamental
1.Market: Ace Market
2.Price: RM0.35
3.Forecast P/E: 13.57 (FYE2023, EPS RM0.0258)
4.ROE(Proforma III): 21.78%
5.ROE: 43.58% (FYE2023), 53.3%(FYE2022), 53.4%(FYE2021), 45.9%(FYE2020)
6.Net asset: RM0.12 (ProForma III)
7.Total debt to current asset: 0.468 (Debt: 34.420mil, Non-Current Asset: 4.844mil, Current asset: 73.602mil)
8.Dividend policy: 25% PAT dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 30June): RM150.940 (Eps: 0.0258), PAT: 6.35%
2022 (FYE 30June: RM107.330 mil (Eps: 0.0212), PAT: 7.36%
2021 (FYE 30June): RM53.702 mil (Eps: 0.0128), PAT: 8.87%
2020 (FYE 30June): RM43.623 mil (Eps: 0.0071), PAT: 6.06%
Unbilled Order Book
FYE2024: RM154.533 mil
FYR2025: RM90.00 mil
FYE2026: RM10.00 mil
FYE2027: RM10.00 mil

Major customer (2023)
1.Tialoc Malaysia Sdn Bhd: 35.46%
2.Customer C: 11.08%
3.Customer E: 10.94%
4.Customer D: 5.87%
5.Customer F: 4.09%
***total 67.44%

Major Sharesholders
1.Ir. Tan Si Lim: 70% (indirect)
2.Ir. Chow Chin Seang: 70% (indirect)
3.TCCO: 70% (direct)

Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM1.486 mil
key management remuneration: RM0.90 mil – RM1.050 mil
total (max): RM2.536 mil or 11.45%

Use of funds
1.Acquisition of new regional office: 23.06%
2.Expansion of sales & technical team: 17.29%
3.Capital expenditure: 6.15%
4.Working capital: 38.13%
5.Estimated listing expenses: 15.37%

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, and also come with high grow return opportunities.

*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.