ECA INTEGRATED SOLUTION 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: 04/11/2022
Close to apply: 11/11/2022
Balloting: 16/11/2022
Listing date: 23/11/2022

Share Capital
Market cap: RM98.175mil
Total Shares: 577.5mil shares

Industry CARG (2015-2021)
Global automated manufacturing solutions industry: 7.9%
Automated manufacturing solutions industry in Malaysia: 17.5%
Competitors PAT%
ECA Integrated Group: 39.9%
Aimflex Berhad:6.2% PE18
BBS Automation Penang Sdn Bhd:78.8%
DNC Automation (M) Sdn Bhd:1.0%
Genetec Technology Berhad:26.0% PE21
Greatech:35.2%, PE38
Pentamaster:17.1%, PE33
Vitrox: PE33

Business (FYE 2022)
Automated manufacturing solution provider.
1.Integrated production systems: 84.6%
2.Standalone automated equipment: 9.9%
3.After sales service to our customers for the provision of technical support services and spare parts: 5.5%
Revenue by Geo
1. Msia: 34.2%
2. Europe: 16.1%
3. Asia: 7.0%
4. North America: 42.7%

Fundamental
1.Market: Ace Market
2.Price: RM0.17
3.P/E: 11.97 @ RM0.0142
4.ROE(Pro Forma III): 15.4%
5.ROE: 48%(FYE2022), %(FYE2021), 62.8%(FYE2020), 47.3%(FYE2019)
6.NA after IPO: RM0.08
7.Total debt to current asset after IPO: 0.21 (Debt: 10.706mil, Non-Current Asset: 5.950mil, Current asset: 49.075mil)
8.Dividend policy: target 20% PAT dividend policy.
9. Shariah starus: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 30Jun, 8mths): RM17.816 mil (Eps: 0.0079),PAT: 25.7%
2021 (FYE 31Oct): RM20.511 mil (Eps: 0.0142),PAT: 39.9%
2020 (FYE 31Oct): RM15.367 mil (Eps: 0.0096),PAT: 36.2%
2019 (FYE 31Oct): RM7.671 mil (Eps: 0.0024),PAT: 17.8%

Major customer (2022)
1. Customer B5: 42.4%
2. Customer H: 18.7%
3. Customer C: 10.8%
4. Customer B2: 10.0%
5. Customer A2: 7.1%
***total 89.0%

Major Sharesholders
Mr.Ooi: 24.3%
Mr.Chua: 27.8%
Mr.Kang: 13.6%

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)
Total director remuneration: RM1.335mil
key management remuneration: RM0.70mil - RM0.850mil
total (max): RM2.185 mil or 19%

Use of funds
1. Acquisition of machineries: 30.2%
2. Repayment of bank borrowings: 3.9%
3. Working capital: 54.9%
5. Listing Expenses: 11%%

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 slightly above normal IPO. Investor need to take note on the cash operating cashflow is not strong, & need to be monitor for every QR result.

*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.