IPO Series – Kucingko, Malaysia First’s Listing Animation Company
KUCINGKO BERHAD 0351
Timetable of IPO
-Will be listed on the ACE Board
Full Video on Kucingko (Chinese version): - YouTube
Info of IPO
Enlarged no. of shares upon listing: 500M
IPO price: RM0.30
Market capitalization: RM150M
Estimated funds to raise from Public Issue: RM30M
PE ratio = 17.94x (based on FY2023)
Business Model
Figure 2: Business model of Kucingko
Source: Kucingko IPO prospectus
Utilisation of Proceeds
1)Capacity expansion (RM17.767M or 59.22%)
2)USA sales office (RM4.377M or 14.59%)
3)Working capital (RM4.256M or 14.19%)
4)Listing expenses (RM3.6M or 12.0%)
1)Capacity expansion (RM17.767M or 59.22%)
2)USA sales office (RM4.377M or 14.59%)
3)Working capital (RM4.256M or 14.19%)
4)Listing expenses (RM3.6M or 12.0%)
Figure 3: Utilisation of proceeds of Kucingko
Source: Kucingko IPO prospectus
-For the capacity expansion category, the group plans to set up a production branch office in Sabah and Sarawak and expand the Group’s workforce in Selangor. The setup of the USA sales office is to address potential business opportunities with prospective customers and continue to serve the requirements of the Group’s existing customers in North America. While for the working capital, it is for the payroll expenses for animation technical personnel, marketing support expenses, and administrative expenses.
Dividend Policy
-The group targets a payout ratio of not less than 40.00% of the PAT
-The group targets a payout ratio of not less than 40.00% of the PAT
Proprietary Content
Figure 4: Proprietary content of Kucingko
Source: Kucingko IPO prospectus
Major Customers and Major Suppliers
Figure 5: Major customers and suppliers of Kucingko in FY2023
Source: Kucingko IPO prospectus
Financial Summary & Industry Overview
-From FY2020 to FY2024, the recorded revenue was RM14.923M, RM17.675M, RM23.485M, and RM28.159M respectively, which was a CAGR of 23.57%.
-From FY2020 to FY2024, the recorded revenue was RM14.923M, RM17.675M, RM23.485M, and RM28.159M respectively, which was a CAGR of 23.57%.
Figure 6: Financial statement of Kucingko
Source: Kucingko IPO prospectus
-The PAT was also showing increasing trend from RM3.677M in FY2020 to RM8.359M in FY2024, an increment of RM4.682M or 127.33%. Nonetheless, staff costs of the group were raised from RM7.376M in FY2020 to RM10.995M in FY2024
-For the financial position part, the ratio of the total equity to total liabilities was approximately 2.41 times.
-From the independent market research report, there is no available listed animation company however there are several S/B companies stated such as Lemon Sky Animation S/B and Anima Vitae Point S/B that have NP margins of more than 10%.
-For the financial position part, the ratio of the total equity to total liabilities was approximately 2.41 times.
-From the independent market research report, there is no available listed animation company however there are several S/B companies stated such as Lemon Sky Animation S/B and Anima Vitae Point S/B that have NP margins of more than 10%.
Figure 7: Financial highlights of Kucingko
Personal Opinion
-Based on the financial report, either revenue or PAT was showing an increasing trend, and generally, the fundamentals of the company are healthy.
-There’s no available existing listed company to compare with as this is an animation company (quite fresh and interesting), and hence investors might need to analyze properly and look deeply into the company prospects.
-The geographical markers are focusing on North America and Europe, and this can be deemed as a competitive strength as the company can earn foreign currency and translate it into MYR, enhancing the cash flow of the company.
-Based on the financial report, either revenue or PAT was showing an increasing trend, and generally, the fundamentals of the company are healthy.
-There’s no available existing listed company to compare with as this is an animation company (quite fresh and interesting), and hence investors might need to analyze properly and look deeply into the company prospects.
-The geographical markers are focusing on North America and Europe, and this can be deemed as a competitive strength as the company can earn foreign currency and translate it into MYR, enhancing the cash flow of the 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/7212761
https://www.klsescreener.com/v2/announcements/view/7212761
By: Jshen Ng
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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