IPO Series – EPB Group Berhad – One-Stop Provider of Food Processing and Packaging Machinery Solutions
Timetable of IPO
Figure 1: IPO timetable
Source: EPB Group Berhad IPO prospectus
-Will be listed on the ACE Board
Info of IPO
Enlarged no. of shares upon listing: 372M
IPO price: RM0.56
Market capitalization: RM208.32M
Estimated funds to raise from Public Issue: RM40.08M
PE ratio = 14.61x (based on FY2023)
Enlarged no. of shares upon listing: 372M
IPO price: RM0.56
Market capitalization: RM208.32M
Estimated funds to raise from Public Issue: RM40.08M
PE ratio = 14.61x (based on FY2023)
Business Model
Figure 2: Business model of EPB Group
Source: EPB Group Berhad IPO prospectus
Utilization of Proceeds (refer to Figure 2)
1)Factory expansion:
(a) Acquisition of land (RM13M or 32.43%)
(b) Construction of factory (RM10.5M or 26.20%)
(c) Purchase of machinery (RM1.1M or 2.74%)
2)Repayment of bank borrowings (RM3M or 7.49%)
3)Working capital (RM8.4792M or 21.16%)
4)Listing expenses (RM4M or 9.98%)
1)Factory expansion:
(a) Acquisition of land (RM13M or 32.43%)
(b) Construction of factory (RM10.5M or 26.20%)
(c) Purchase of machinery (RM1.1M or 2.74%)
2)Repayment of bank borrowings (RM3M or 7.49%)
3)Working capital (RM8.4792M or 21.16%)
4)Listing expenses (RM4M or 9.98%)
Figure 3: Utilisation of proceeds
Dividend Policy
-The group does not have any formal dividend policy
-The group does not have any formal dividend policy
Major Customers
Figure 4: Major customers of EPB Group in FY2023
Source: EPB Group Berhad IPO prospectus
Geographical location
Figure 5: Revenue of geographical location
Financial Summary & Industry Overview
-From FY2020 to FY2023, the group has shown a 31.30% CAGR in terms of its PAT, where the PAT increased from RM6.298M to RM14.258M.
-In terms of total liabilities, it dropped from RM34.118M in FY2020 to RM24.547M in FY2023, which was a 28.05% reduction however its total equity rose from RM23.539M to RM54.711M within the same period.
-The CFO has maintained a positive figure from FY2020 to FY2023, and the cash and cash equivalent shows a 141.58% increment.
-From FY2020 to FY2023, the group has shown a 31.30% CAGR in terms of its PAT, where the PAT increased from RM6.298M to RM14.258M.
-In terms of total liabilities, it dropped from RM34.118M in FY2020 to RM24.547M in FY2023, which was a 28.05% reduction however its total equity rose from RM23.539M to RM54.711M within the same period.
-The CFO has maintained a positive figure from FY2020 to FY2023, and the cash and cash equivalent shows a 141.58% increment.
Figure 6: Financial highlights - EPB Group
Figure 7: Financial highlights - EPB Group
Personal Opinion
-Based on the revenue segment, the group is focusing on the food processing and packaging machinery solution, which made up more than 80% of its FY2023, while the other remaining segments made up not more than 20% of the revenue.
-The financial statements of the group are performing well, which has the highest PAT margin as compared to other stated industry players in the market research report.
-Projecting to the future financial year, it is also estimated that the F&B industry may grow by a percentage point of 10%, which may benefit this company.
-Based on the revenue segment, the group is focusing on the food processing and packaging machinery solution, which made up more than 80% of its FY2023, while the other remaining segments made up not more than 20% of the revenue.
-The financial statements of the group are performing well, which has the highest PAT margin as compared to other stated industry players in the market research report.
-Projecting to the future financial year, it is also estimated that the F&B industry may grow by a percentage point of 10%, which may benefit this company.
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 the information in 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
The details of the IPO prospectus can be accessed through
https://www.klsescreener.com/v2/announcements/view/7205741
https://www.klsescreener.com/v2/announcements/view/7205741
By: Jshen Ng
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Jshen Ng
2024H1 Moomoo Alchemist
🪙Ph.D (Civil-Geotechnics)
🪙Exploring new horizons in investment
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