LEFORM BERHAD

Open to apply: 26/10/2022
Close to apply: 11/11/2022
Balloting: 15/11/2022
Listing date: 22/11/2022

Share Capital
Market cap: RM340 mil
Total Shares: 1.481bil shares
 
Industry CARG
Malaysia steel manufacturing sales value (2018-2021): CAGR5.4%
Competitors historical PAT% range & current PE.
ChooBee: -0.3% to 20.3%, PE2.27
Astino: 4.1% to 11%, PE4.58
ATTA: -0.27% to 17.7%, PE84.38
Engtex: -0.1% to 6.5%, PE9.27
LSteel: -5.5% to 11.4%, PE3.95
LeonFB: 0.9% to 15.3% ,PE1.56
Melewar: -10.2% to 4.7% ,PE2.25
Prestar: 1.2% to 17.7%,PE1.82
Tashin: 0.2% to 16.1%  ,PE2.44

Business (FYE 2022)
Manufacturing of and trading in steel products. 
Revenue by Geo:
M'sia: 98.4%
Others: 1.6%

Fundamental
1.Market: Ace Market
2.Price: RM0.23
3.P/E: 14.4 @ RM0.016
4.ROE(Pro Forma III): 9.73%
5.ROE: 26.74%(FYE2021), 5.68%(FYE2020), -%(FYE2019)
6.NA after IPO: RM0.17
7.Total debt to current asset after IPO: 0.696 (Debt:261.109mil, Non-Current Asset: 136.017mil, Current asset: 374.917mil)
8.Dividend policy: no formal dividend policy. 
9. Shariah status: yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 30Jun): RM213,671 mil (Eps: 0.008),PAT: 5.7%
2021 (FYE 31Dec): RM373,974 mil (Eps: 0.030),PAT: 12.1%
2020 (FYE 31Dec): RM354,714 mil (Eps: 0.004),PAT: 2.0%
2019 (FYE 31Dec): RM344,581 mil (Eps: -0.001),PAT: -0.5%
 
Major customer (2022)
1. Noblelift Malaysia Sdn Bhd: 13.3%
2. Pipeworks Sdn Bhd: 7.6%
3. Tai Hoe Hardware Sdn Bhd: 4.3%
4. Metro Supplies Marketing S/B: 3.0%
5. Machmar Industries S/B: 2.8%
***total 29.00%

Major Sharesholders
1. Law Kok Thye: 51% (indirect)
2. Tianwen Holdings: 51% (Direct)

Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2022)
Total director remuneration: RM3.215mil
key management remuneration: RM0.7 mil - 0.9mil
total (max): RM4.115 mil or 8.11% 

Use of funds
1. Construction of new headquarters, warehouse storage facility and workers’ accommodation: 42%
2. Repayment of bank borrowings: 20.1%
3. Working capital: 30.6% 
5. Listing Expenses: 7.3%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall this IPO is not suitable to low risk investor, as the commodities fluctuation will cause big effect to the company net profit in future. 

*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.