Samaiden Group Berhad

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Open to apply: 29/09/2020
Close to apply: 05/10/2020
Listing date: 15/10/2020

Share Capital
Market Cap: RM100.8 mil
Total Shares: 210mil shares (Public apply: 10.5mil, Company Insider/Miti/Private Placement/other: 50.655mil)

Industry
Renewable Energy (Solar & Biogas)
-Renewable Energy demand rising globally
-Solar panel cost getting cheaper & getting more commons (costing effectiveness)

Competitor (net Profit Margin%)
Scatec Solar: 36.6%
Solarvest: 9.9% (PE39.18)
Samaiden: 9.5%
Panasonic Life Solutions: 2.1%
El Power: 6.4%

Business
Existing: Enginneering, procurement, construction & commisonning services for Solar PV system. 
Futures: Own operate Biogas Plant (Bachok, Kelantan) & PV Power Plant (Sungai Petani, Kedah).
Market: Malaysia (Mainly), Vietnam (futures expend)

Fundamental
Market: Ace Market
Price: RM0.48 (EPS:0.0345)
P/E: PE13.91
ROE (Pro Forma III): 17.01
ROE: 49.23 (2020), 101.01 (2019), 65.93 (2018), 90.27 (2017)
Cash & fixed deposit after IPO: RM0.165 per shares
NA after IPO: RM0.20
Total debt to current asset after IPO: 0.299 (Debt: 17.355mil, Non-Current Asset: 1.539mil, Current asset: 58.116mil)
Dividend policy: No fix dividend policy.

Past Financial Performance (Revenue, EPS)
2020: RM76.170 mil (EPS: 0.0345)
2019: RM68.301 mil (EPS: 0.0356)
2018: RM31.322 mil (EPS: 0.0153)
2017: RM6.530 mil (EPS: 0.0065)

Net Profit Margin
2020: 9.49%
2019: 10.95%
2018: 10.26%
2017: 20.89%

After IPO Sharesholding
Dato' Dr.Nadzri Bin Yahaya: 0.41% 
Ir.Chow Pui Hee: 35.57%
Fong Yeng Foon: 35.31%
Lim Poh Seong: 0.14%
Olivia Lim: 0.14%

Directors Remuneration for FYE2021 (from gross profit 2020)
Dato' Dr.Nadzri Bin Yahaya: RM62k

Ir.Chow Pui Hee: RM574k
Fong Yeng Foon: RM492k
Lim Poh Seong: RM50k
Olivia Lim: RM38k
Total director remuneration from PBT: RM1.216mil or 10.43%

Key Management Remuneration  for FYE2021 (from gross profit 2020)
Susie Chung Kim Lan: RM150k-200k
Mohd Makhzumi bin Ghazali: RM100k-150k
Ir.Kang Ching Yew: RM100k-150k
key management remuneration from PBT: RM350k-500k or 0.3%

Use of fund
Purchase of Corporate Office: 23.85%
Business expansion and marketing activities: 8.65%
Capital expenditure: 3.98%
Working capital: 52.62%
Listing Expenses: 10.90%

Good thing is:
1. Renewable Energy is in sunrise industry & demand is rising globally. 
2. Cost of solar panel is getting cheaper compare past few years (lower cost of purchase)
3. PE13 is at acceptable fair value.
4. Revenue growing for past 4 years.
5. IPO use for expand business. (futures will have recurring income on own operate plant in Kedah & Kelantan).

The bad things:
1. High competitor environment as entry of business is not high.
2. No fixed dividend policy.
3. Director remuration is 10.43% from 2020 gross profit. 
4. Listing is in Ace Market.
5. Net profit is around 10%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion)
Riding on the right trend of business grow is benefited the company. We will see growth of the business.
 
*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.