IPO Series - 3REN BERHAD (3REN 0328) - The Next Genetec / Pentamaster / Oppstar ?

Timetable of IPO

Figure 1: IPO timetable of 3REN BERHAD
-Will be listed on the ACE Board

Info of IPO
Enlarged no. of shares upon listing: 650 million
IPO price: RM0.28
Market capitalization: RM182 million
Estimated funds to raise from Public Issue:  RM30.80 million
PE ratio = 15.68x (based on FY2023)
 
Business Model

Figure 2: Business model of 3REN BERHAD
Source: 3REN BERHAD IPO prospectus

Utilisation of Proceeds

Figure 3: Utilisation of proceeds of 3REN BERHAD
Source: 3REN BERHAD IPO prospectus

Dividend Policy
-The group does not have a dividend policy

Major Customers and Major Suppliers

Figure 5: Major customers and suppliers of 3REN BERHAD in FPE2024
Source: 3REN BERHAD IPO prospectus
 
Financial Summary

Figure 6: Profit & Loss statement of 3REN BERHAD

Figure 7: Financial position of 3REN BERHAD

Figure 8: Major source of revenue contribution by Intel and KellyOCG

Financial overview, industry market, and personal opinion
-Reviewing the financial position of 3REN, the total equity to total liabilities ratio was almost 3 times in FPE2024, where the retained earnings of the group sharply increased from RM24.97million to RM54.135million from FY2020 to FPE2024. The increment in total liabilities was mainly due to the rise of borrowings in the non-current liabilities section, from RM3.16 million to RM10.66 million within the same period.
-The growth of semiconductor demand is anticipated to increase from time to time, mainly contributed by the demand of the AI, automotive, and life science industries. The industry players from the independent market research report have been split into two (2) categories: product engineering services and the automated testing equipment (ATE) segment. Famous industry players include GENETEC, PENTAMASTER, and OPPSTAR.
-Based on the calculation of PE in FPE2024 and compared with FY2023, this indicator does not seem favorable for me to invest heavily for its IPO, but will allocate a smaller amount of capital for this IPO.

Would you apply for this IPO? Share your thoughts in the comments section below.
 
 
Disclaimer: The above content is not an investment advisory service and does not purport to tell or suggest which securities or stocks customers should buy or sell for themselves. It should not be assumed that the methods, techniques, or indicators presented above will be profitable or will not result in losses. You should not rely solely on information when making any investment. Rather, you should use the information only as a starting point for doing additional independent research to allow you to form your own opinion regarding investments.
 

By: Jshen Ng