IPO Series - Carlo Rino Group Berhad - Women's Accessories Retailer

Figure 1: IPO timetable of Carlo Rino Group Berhad
-Will be listed on the ACE Board

Info of IPO
Enlarged no. of shares upon listing:  977.5171 million
IPO price: RM0.27
Market capitalization: RM263.92 million
Estimated funds to raise from Public Issue:  RM46.404 million
PE ratio = 13.66x (based on FY2024)
 

Figure 2: Business model of Carlo Rino Group Berhad
Source: Carlo Rino Group Berhad IPO prospectus

Figure 3: Product category of Carlo Rhino Group

Source: Carlo Rino Group Berhad IPO prospectus

Figure 4: Utilization of proceeds of Carlo Rino Group Berhad
Source: Carlo Rino Group Berhad IPO prospectus

Dividend Policy
-The group distributes not less than 30% of the company’s PAT

Figure 5: Major customers and suppliers of Carlo Rino Group Berhad in FPE2024
Source: Carlo Rino Group Berhad IPO prospectus
 

Figure 6: Profit & Loss statement of Carlo Rino Group Berhad

Figure 7: Financial position of Carlo Rino Group Berhad

Figure 8: Market share of Carlo Rhino Group in 2024

Source: Carlo Rino Group Berhad IPO prospectus

Financial overview, industry market, and personal opinion
-The PAT and its margin have grown exponentially from time to time, particularly after FY2021, from RM3.98 million to RM19.31 million in FY2024 which generated a CAGR of 69.29%. The total liabilities did not increase but presented a decrement figure from RM40.666 million to RM38.42 within the same timeline.
- Based on the market research report, women’s footwear has the highest CAGR, which was 6.3%, followed by women’s handbags presented a CAGR of 4.1%, and accessories possessed a CAGR of 3.9% from 2019 to 2023.
-Based on the given comparable companies, Bonia, MESB, and Padini, the average PE is 10.62x and the calculated PE for Carlo Rino in FY2024 is slightly higher than the average value, which is 13.66x. However, the group has been maintaining a healthy financial fundamental according to the provided figures.

By: Jshen Ng