Halex, another blackhorse ??

What we can expect for next IPO -- Halex ??

Halex IPO to list its shares on September 16 2009 in bursa, plans to raise RM7.8 million by issuing 10 million shares at 78 sen per share through the initial public offering. Oversubscription of 7.14 times
Product mostly focus on tissue cultured plants, festive plants, agrochemicals, horticulture and healthcare disposable products. They plans to expand the existing facilities in Kawasan Industri Bandar Tenggara, Johor, to cater to more production lines.
75% revenue from local & 25% oversea
After reading their financial report, it's what I understand:

Revenue : 26 million
EPS: 3.74 (cent)
PE: 5.21 (base on 3.74 for 4 qtr & IPO price 0.78)
Debt : 1: 0.5 healthy

If market price go up to RM1, PE still healthy as 6.7 only...
Overall look good & healthy for me compare to previous 2 IPO (msports and Tas), but it's quite a small scale. Performance should be better than others 2, hopefully ^-~

Msports -- Multi Sports Holdings LTD 2nd red chip in Bursa 不是猛龍不過江

It always got my attention when new IPO listed and drop like hell, a counter drop 36% since IPO listing price RM0.85 to RM0.545 in 14 days.

The Star: “This is the second China-based company to announce its listing on Bursa Malaysia through initial public offering (IPO). It registered a net profit of RM46.8mil in the financial year ended Dec 31, 2008 on revenue of RM195.78mil. Its net profit and revenue grew at a compounded annual growth rate of 37.8% and 34% respectively over the last three years. It currently has about 1,900 employees and serves about 300 customers, including Guohui, 361° and Xdlong, the manufacturers of well-known China brands. It has set a dividend payout policy of at least 20% of its pre-tax profit per year.”

Wow, What a great sentence “dividend payout at least 20% of its pre-tax profit per year”

Check it out the financial report

52 million revenue, 13 million profit & 0.05 EPS

Let’s find out what’s the PE for this company: 0.05 x 4 = 0.2 cent

RM0.545 / RM0.002 = PE 272 (Our Public bank , Sime PE only 12, 13)

Can you imaging to earn back what you pay for this counter you need 272 years…. Can you make it that long??

If it happen drop to RM0.1, PE=50, you still need 50 years to earn it back your cost!!! How they justify IPO price RM0.85 I really wish to know.

Let’s look at THE EDGE http://www.theedgemalaysia.com/business-news/148513-quek-family-sells-36-stake-in-multi-sports.html

According to filings to Bursa Malaysia last Friday, the Quek family, via its Cayman Islands incorporated vehicle GuoLine Group Management Co Ltd, had disposed of a 3.6% stake comprising 12.97 million shares in Multi Sports on Aug 24.

Do you still want to buy RED CHIP IPO ???

TAS IPO

TAS the highest IPO oversubscription this year

Impressive !!! market price also the same for tomorrow??

KUALA LUMPUR: Main Market-bound shipbuilding group TAS Offshore Bhd's initial public offering (IPO) has the highest oversubscription rate among the IPOs this year at 19.47 times.

In a statement today, TAS group managing director Datuk Lau Nai Hoh said the total value of the applications received of RM165.8 million was also the largest in terms of value of applications by the Malaysian public for an IPO in 2009.

"The oversubscription rate and overwhelming response to the public issue of TAS Offshore reflect the strong confidence that investors have in TAS Offshore," he said.

Scheduled to be listed on Aug 28, 2009, TAS raised a total of RM69.3 million which will be used for expansion of existing operations, working capital and listing expenses.

Lau said it intended to use 81% of the proceeds to embark on "build, own and sell ships" as well as "build, own and charter ships".

Predominantly an export-oriented company, TAS group's main markets include Singapore, United Arab Emirates (UAE), Bahrain and Indonesia and the majority of its customers are in the oil and gas as well as mining industries. Export makes up 89.1% of its total group revenue.