ORGABIO HOLDINGS BERHAD

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***Important***Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision.

Open to apply: 15/06/2022
Close to apply: 21/06/2022
Balloting: 24/06/2022
Listing date: 05/07/2022

Share Capital
Market cap: RM76.839 mil
Total Shares: 247.868 mil shares
 
Industry & Competitor (PAT%)
Coffee, tea, milk and cocoa beverage industry size, 2018 – 2021 CAGR: 7.73%
Orgabio: 12.94%
Ori Bionature (M) S/B: 17.58%
AIM Food Manufacturing S/B: 11.46%
Others:-4.48% to 7.68%
 
Business (FPE 2022)
Instant beverage premix manufacturing services to third party brand owners and manufacturing, sales and marketing of house brand instant beverage premixes.
Revenue by Geo
M’sia: 78.10% 
Papua New Guinea: 11.34%
S’pore: 2.04%
China: 3.84%
Trinidad and Tobago: 3.44%
Others: 1.24%

Fundamental
1.Market: Ace Market
2.Price: RM0.31
3.P/E: 10.06 @ EPS0.0308
4.ROE(Pro Forma III): 11.43% (ProForma)
5.ROE: 36.79%(FYE2021), 37.25%(FYE2020), 15.61%(FYE2019), 45%(FYE2018)
6.NA after IPO: RM0.19
7.Total debt to current asset after IPO: 0.75 (Debt: 24.771mil, Non-Current Asset: 39.306mil, Current asset: 32.812mil)
8.Dividend policy: No any formal dividend policy. 

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FPE 31Dec, 6mths): RM34.843 mil (Eps: 0.0109),PAT: 7.77%
2021 (FYE 30Jun): RM59.072 mil (Eps: 0.0308),PAT: 12.94%
2020 (FYE 30Jun): RM39.373 mil (Eps: 0.0227),PAT: 14.31%
2019 (FYE 30Jun): RM31.696 mil (Eps: 0.0091),PAT: 7.14%
2018 (FYE 30Jun): RM32.670 mil (Eps: 0.0222),PAT: 16.85%
 
Factory ulilisation rate
2022: 73.58%
2021: 84.26%
2020: 70.44%
2019: 70.04%
2018: 83.18% 

Major customer (2021)
1. TDC Avenue Sdn Bhd: 45.31%
2. Hai-O Enterprise Bhd: 19.28%
3. Lotuss Stores (M) S/B: 2.83%
4. Amway (M) S/B: 1.19%
5. Eonsave: 0.95% 

Total top 5 customer is 69.56% (2022)

Major Sharesholders:
Ean Yong & Sons: 61% (direct)
Hai-O: 10% (direct)
 
Directors & Key Management Remuneration for FYE2022 (from Revenue & other income 2021)
Total director remuneration: RM1.051 mil
key management remuneration: RM0.45 mil – RM0.0.60 mil
total (max): RM2.101 mil or 11.76%  
 
Use of fund
1. Contruction of new factory: 53.39%
2. Acquisition of machinery: 7.44%
3. Working capital: 27.15%
4. Listing Expenses: 12.02%

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 normal IPO. With the expand to build new factory should able to see increase of revenue after new factory start operate Aug 2023.