L&P GLOBAL BERHAD

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Open to apply: 13/12/2022
Close to apply: 19/12/2022
Balloting: 21/12/2022
Listing date: 03/01/2023

Share Capital
Market cap: 168mil (will depend on final IPO price)
Total Shares: 560mil shares
 
Industry CARG (2017-2021)
Wooden industrial packaging industry, Malaysia, 2017- 2021: CAGR 5.11%
Industrial packaging industry, Vietnam, 2017-2021e: 19.52%
Competitors comparision (PAT%) 
L&P group: 11.85%
ETH Holdings Sdn Bhd: 2.32%
Transpak Worldwide Sdn. Bhd: 6.06%
EPE Packaging (Penang) Sdn Bhd: 0.98%
LHT Holdings Limited (its subsidairy): 9.99% (PE6.85)
Nefab (Malaysia) Sdn Bhd: 9.41%
TimberTech Pallet Systems Sdn Bhd: -0.98%

Business (FYE 2022)
Design and manufacture of integrated wooden based industrial packaging solutions. 
Boxes, crates & packing services: 69.97%
Pallets: 27.03%
Provision of circular supply services: 0.85%
Trading as value added sevice: 2.15%
Revenue by Geo
M'sia: 81.39%
Vietnam: 18.61%

Fundamental
1.Market: Ace Market
2.Price: RM0.30
3.P/E: 11.72 @ RM0.0256
4.ROE(Pro Forma III): 18.46%
5.ROE: 36.09%(FYE2021), 35.34%(FYE2020), 23.96%(FYE2019)
6.NA after IPO: RM0.13
7.Total debt to current asset after IPO: 0.704 (Debt: 61.656mil, Non-Current Asset: 47.819mil, Current asset: 87.578mil)
8.Dividend policy: proposed 20%-50% PAT dividend policy. 
9. Shariah starus: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 30Jul, 7mths): RM83.824 mil (Eps: 0.0142),PAT: 9.47%
2021 (FYE 31Dec): RM120.924 mil (Eps: 0.0256),PAT: 11.85%
2020 (FYE 31Dec): RM88.305 mil (Eps: 0.0176),PAT: 11.16%
2019 (FYE 31Dec): RM66.304 mil (Eps: 0.0078),PAT: 6.63%

Profit before tax vs cash from operating
2022: 49.61%
2021: 50.46%
2020: 41.30%
2019: 14.79%

Major customer (2022)
1. First Solar Group of Companies: 55.39%
2. Jinko Solar Group of Companies: 12.12%
3. Customer A: 4.9%
4. Celestica Electronics (M) Sdn Bhd: 3.11%
5. Flextronics Group of Companies: 2.19%
***total 77.71%

Major Sharesholders
B Pack Holdngs Sdn Bhd: 64.51% (direct)
Ooi Lay Pheng: 64.51% (indirect)
Lee Soon Swee: 64.51% (indirect)
Ooi Hooi Kiang: 4.7% (indirect)
Ooi Kah Hong: 4.7% (indirect)
Moviente: 4.7% (direct)

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)
Total director remuneration: RM0.843mil
key management remuneration: RM0.95mil - RM1.2mil
total (max): RM2.043 mil or 11.93% 

Use of funds
1. Capital expenditure: 29.5%
2. Business expansion: 5.9%
3. Repayment of borrowings: 14.75%
4. Working capital: 38.35%
5. Listing Expenses: 11.50%

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 fair IPO. The company have opportunities to growth when it finish set-up the Johor factory.