tis one easily hit 15000
last one to hoot in July

EPB Bhd, a company based on food processing and packaging machinery solutions (80%) and manufacturing and trading of flexible packaging materials (20%).

The Q1 2024 results announced on June 27th 2024, showed revenue of just RM 18 mil with PAT of RM 1.29 mil and PAT margin of 7%. The annualised Revenue and PAT are RM 72 mil and RM 5.2 mil. EPS is 1.36 sen.

Current latest outstanding orderbook = RM 43 million, to be realized by FYE 2024.

These numbers are significantly lower than FYE 2023 values of RM 122 mil, RM 14.3 mil and margin of 12%.

According to IMR, the packaging industry is set to grow at CAGR of 10.4% from 2024 until 2028. If it is true, the revenue for EPB is expected to be RM 134 mil for FY 2024.

However, based on the Q1 2024 results coupled with annualized projections, these numbers seems difficult to achieve.

Even assuming all the entire outstanding orderbook is realized at PAT margin of 12% for FY 2024, The maximum PAT is RM 5.2 mil, similar to the quarterly results published on June 27th 2024.

The company must work hard to replenish their orderbook of up to RM 80 Mil to last for another 5 months of FY 2024, an uphill task to achieve.

IPO price :56 sen
No of shares : 372 mil
EPS =1.36 sen
PE ratio = 40x

*Closest Packaging peers = TGuan (PE 10x), SLP (23x) and BPpackaging (11x)*.

*Industrial products PE ratio = 18x*

My humble recommendation : high risk, low returns. The current price of 56 sen is expensive, unless miracle can happen for subsequent quarters.

IPO was opened for application from 27th June 2024 until 31st July 2024..Balloting on 8th Aug 2024. .something very uncommon for IPO market.

Thank you.

C&P FB Yeap Boontat

Huh?
So fast

which bank