IPO Series - Mega Fortris Berhad -Design, Manufacture, and Trading of Security Seals

Figure 1: IPO timetable of MEGA FORTRIS BERHAD
-Will be listed on the Main Board

Info of IPO
Enlarged no. of shares upon listing: 8444.97 million
IPO price: RM0.67
Market capitalization: RM566.13 million
Estimated funds to raise from Public Issue:  RM99.07 million
PE ratio = 26.19x (based on FY2024)
 

Figure 2: Business model of MEGA FORTRIS BERHAD
Source: MEGA FORTRIS BERHAD IPO prospectus

Figure 3: Utilisation of proceeds of MEGA FORTRIS BERHAD
Source: MEGA FORTRIS BERHAD IPO prospectus

Dividend Policy
-The group targets a dividend payout ratio of at least 30%

Figure 5: Major customers and suppliers of MEGA FORTRIS BERHAD in FY2024
Source: MEGA FORTRIS BERHAD IPO prospectus
 

Figure 6: Profit & Loss statement of MEGA FORTRIS BERHAD

Figure 7: Financial position of MEGA FORTRIS BERHAD

Figure 8: Revenue by country

Source: MEGA FORTRIS BERHAD IPO prospectus

Figure 9: Common types of security seals

Source: MEGA FORTRIS BERHAD IPO prospectus

Financial overview, industry market, and personal opinion
-In terms of their revenue and PAT, both categories demonstrated an increment trend from RM135.10million and RM4.56million to RM166.81million and RM21.61million respectively, or with a CAGR of 67.96% of its PAT.
-Mega Fortris Berhad does not have peer-listed companies to compare, thus it is unanticipated in regard to its PE valuation.
-The group is involved in 12 countries' operations, Europe (mainly UK), Asia Pacific (mainly Malaysia), America, and UAE. However, the international relation causes the group to be sensitive regarding the sea freight rate.   

By: Jshen Ng