MYMBN BERHAD

Open to apply: 30 June 2023
Close to apply: 10 Jul 2023
Balloting: 13 July 2023
Listing date: 25 July 2023

Share Capital
Market cap: RM81.060 mil
Total Shares: 386,000,000 shares

Industry CARG
Historical Market Size (In Terms of Export Value) and Growth Forecast for the EBN Industry in Malaysia, 2022-2027f: 34%
Industry competitors comparison (net profit%)
1. MYMBN: 6.28%
2. Dama Dingji: 0.9%
3. Ming Feng: 9.9%
4. Rickson: 1.9% 

Business (FYE 2022)
Processing and sale of EBN (Edible bird’s nests), RUCEBN (Raw unclean edible bird’s nest)
Revenue by Geo
China: 98.55%
Malaysia: 1.45%

Fundamental
1.Market: Ace Market
2.Price: RM0.21
3.Forecast P/E: PE18.75 (FYE2022 EPS0.0112)
4.ROE(Pro Forma III): 13.22%
5.ROE:  28.61%(FPE2022), 62.41%(FYE2021), 79.01%(FYE2020), 22%(FYE2019)
6.Net asset: RM0.0847
7.Total debt to current asset: 0.194 (Debt: 6.115mil, Non-Current Asset: 7.235mil, Current asset: 31.569mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 31Dec): RM68.871 mil (Eps: 0.0112), PAT: 6.28%
2021 (FYE 31Dec): RM91.556 mil (Eps: 0.0174),PAT: 7.35%
2020 (FYE 31Dec): RM44.408 mil (Eps: 0.0083),PAT: 7.22%
2019 (FYE 31Dec): RM11.897 mil (Eps: 0.00048),PAT: 1.57%
*EPS calculate using 386,000,000 shares

Operating cashflow vs PBT
2022: 37.99%
2021: 108%
2020: -ve
2019: -ve

Trade Receivable vs Revenue
2022: 4.33%
2021: 0.067%
2020: 16.69%
2019: 6.5%

Major customer (FYE2022)
1.Southeast Edible Bird Nest Capital (Xiamen) Industrial Development Co., Ltd: 64.37%
2.Southeast Edible Bird Nest Capital Biotechnology Co., Ltd: 14.01%
3.Jipintang Health Industry Co., Ltd.: 10.97%
4.Yue Xiang (Zhejiang) Food Co., Ltd: 5.87%
5.China-Malaysia Jinguyan (Guangxi)Biotechnology Co., Ltd.: 2.07%
***total 97.29%

Major Sharesholders
1.Lavernt Chen: 33.58% (direct)
2.Lee Wei Kong: 11.19% (direct)
3.Liw Chong Liong: 11.19% (direct)
4.MLCL Construction: 11.19% (direct)
5.Gentle Rainbow: 7.46% (direct)

Directors & Key Management Remuneration for FYE2023 
(from Revenue & other income FYE2023 revenue forecast)
Total director remuneration: RM0.718 mil
key management remuneration: RM50k – RM0.25 mil
total (max): RM0.968 mil or 9.72%

Use of funds 
1.Purchase of the New Facility to expand processing capacity: 13.63%
2.Renovation and fit out works of the New Facility: 15.55%
3.Setting-up of three (3) bird’s nests collection centres in East Malaysia: 8.16%
4.Expansion into the processing and sale of RCEBN: 6.07%
5.Purchase of raw bird’s nests for RUCEBN: 32.07%
6.Working capital: 9.94%
7.Estimated listing expenses: 14.58%

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 unique business / industry. The business might have grow opportunities, but the industry it self might contain a lot of regulation risk & unstable income.