MASTER TEC GROUP BERHAD

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Open to apply: 28 Dec 2023
Close to apply: 18 Jan 2024
Balloting: 22 Jan 2024
Listing date: 29 Jan 2024

Share Capital
Market cap: RM397.8 mil
Total Shares: 1.020 bil shares

Industry CARG (2023-2040)
Major Infrastructure Projects Undertaken, or in the Pipeline, in Malaysia: RM181.6 bil
Industry competitors comparison (PAT%)
MTG Group: 5.4%
SCGBHD: 1.7% (PE15.94)
Central Cables Berhad: 5.9%
Hi-Essence Cable Sdn Bhd: 4.3%
Olympic Cable Company Sdn Bhd: 2.9%
Power Cables Malaysia Sdn Bhd: 4.3%
Sindutch Cable Manufacturer Sdn Bhd: Losses
Tai Sin Electric Cables (Malaysia) Sdn Bhd: 2.8%
Tonn Cable Sdn Bhd: 1.6%

Business (FYE 2022) 
Manufacturing and distribution of power cables, control and instrumentation cables, and other related products, and the trading of power cables, fibre optic cables, and other related products.
Revenue by Geo
Malaysia: 94.85%
Others Asean country: 5.15% 

Fundamental
1.Market: Ace Market
2.Price: RM0.39
3.Forecast P/E:  16.96 @ (forecast FPE2023, EPS RM0.023)
4.ROE(Pro Forma III): 17.22%
5.ROE:  22.68%(FYE2022),  7.24%(FYE2021), 7.17%(FYE2020)
6.Net asset: 0.1552
7.Total debt to current asset: 0.61 (Debt: 112.950mil, Non-Current Asset: 86.231mil, Current asset: 185.01mil)
8.Dividend policy: 30% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 30 Jun, 6mths): RM138.039 (Eps: 0.0134),PAT: 9.88%
2022 (FYE 31 Dec): RM362.685 mil (Eps: 0.0192),PAT: 5.39% 
2021 (FYE 31 Dec): RM275.875 mil (Eps: 0.0054),PAT: 2.01%
2020 (FYE 31 Dec): RM162.313 mil (Eps: 0.0052),PAT: 3.24%
*Prospectuses book pg224 using EPS diluted 861.9 mil shares, here rejected use this version, writer use 1.020 bil shares as diluted EPS.

Major customer (FPE 2023)
1. TNB Group: 35.97%
2. Pen Power Sdn Bhd: 11.74%
3. SEB Group: 7.45%
4. Oon Brothers Eectrical Trading Co Sdn Bhd: 3.19%
5. Incomtec Consolidated Sdn Bhd: 2.40%
***total 60.75%

Major Sharesholders
1. Dato’  Lau Kim San: 55% (indirect)
2. MTPC: 55% (direct)

Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2022)
Total director remuneration: RM2.935mil
key management remuneration: RM0.4mil – RM0.6mil
total (max): RM3.535 mil or 10.06%

Use of funds
1. Construction of new MV power cable manufacturing plants: 27.22%
2. Purchase of new machineries and equipment: 39.55%
3. General working capital: 26.42%
4. Defray fees and expenses relating to the Proposals: 6.81%

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 low PAT% business.