VESTLAND BERHAD

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Open to apply: 27/12/2022
Close to apply: 16/01/2023
Balloting: 18/01/2023
Listing date: 31/01/2023

Share Capital
Market cap: RM311.621 mil 
Total Shares: 944.308mil shares
 
Industry CARG (2017-2021)
Real GDP Growth of Malaysia’s Economy and the Construction Industry: -5.4%
Overhang of Residential Properties in Malaysia (volume): 10.5%
Overhang of Commercial* Properties in Malaysia (volume): 30.4%
Industry competitors comparison (net profit margin%)
Vestland: 6.2% (PE29.20, 2021), (est PE14.6, 2022)
Suncon: 6.4% (PE12)
Kerjaya Prospek: 9.9% (PE12.72)
GDB: 6.5% (PE8.91)
Inta Bina Group Bhd: 3.5% (PE11.55)
Vizione: -28.9% (-ve)
Tuju Setia: 3.4% (-ve)
TCS Group: 1.2% (-ve)
Gagasan Nadi Cergas Bhd: 3.7% (-ve)
Siab Holdings Berhad: 3.2% (-ve)

Business (FYE 2021)
Construction of residential and non-residential buildings

Fundamental
1.Market: Ace Market
2.Price: RM0.33
3.P/E: 29.20 @ RM0.013 (est, PE14.6,2022)
4.ROE(Pro Forma III): 19.44%
5.ROE: 22.90%(FYE2021), 19.57%(FYE2020), 24.87%(FYE2019)
6.Net asset: RM0.1162
7.Total debt to current asset after IPO:  0.679 (Debt: 144.650mil, Non-Current Asset: 38.144mil, Current asset: 212.987mil)
8.Dividend policy: no formal dividend policy. 
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%
2022 (FPE 30Jun, 6mth): RM139.914 mil (Eps: 0.0113), PAT: 7.62%
2021 (FYE 31Dec): RM171.081 mil (Eps: 0.0113),PAT: 6.22%
2020 (FYE 31Dec): RM97.124 mil (Eps: 0.0074),PAT: 7.22%
2019 (FYE 31Dec): RM98.707 mil (Eps: 0.0076),PAT: 7.26%
***Order book (until 2025): RM947.43mil

Operating cashflow vs PBT
2022: 56.33%
2021: 69.85%
2020: -62.13%
2019: 51.36%

Major customer (2022)
Mercu Majuniaga Sdn Bhd: 36.49%
Hawa Teknik Sdn Bhd: 29.22%
Sg.Besi Construction Sdn Bhd: 18.86%
Binastra Construction(M) Sdn Bhd: 4.81%
***total 95.02%

Major Sharesholders
Datuk Liew Foo Heen: 63.33% (Direct)
Wong Sai Kit: 11.17% (Direct)

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)
Total director remuneration: RM1.444mil
key management remuneration: RM0.95mil - RM1.25mil
total (max): RM2.694mil or 11.45% 

Use of funds
1. Acquisition of the new head office/refinancing of borrowings for acquisition of the new head office: 13.37%
2. Performance bonds and/or cash deposits for construction projects: 19.25%
3. Working capital: 59.71%
4. Listing expenses: 7.67%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall, the company is in low net profit industry at this moment. However take count on the order book, revenue still strong on coming 1-3 years. 

*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