IPO Series - Sorento Capital Berhad - Bathroom & Kitchen Ware Firm

Timetable of IPO

Figure 2: Business model of Sorento Capital Berhad
Source: Sorento Capital Berhad IPO prospectus

Utilisation of Proceeds

Figure 3: Utilisation of proceeds of Sorento Capital Berhad
Source: Sorento Capital 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 Sorento Capital Berhad in FY2024
Source: Sorento Capital Berhad IPO prospectus
 
Financial Summary

Figure 6: Profit & Loss statement of Sorento Capital Berhad

Figure 7: Financial position of Sorento Capital Berhad

Figure 8: Bathroom & kitchen sanitary ware industry in Malaysia (2018-2023)

Source: Sorento Capital Berhad IPO prospectus

Figure 9: Company's revenue by product segments

Sorento Capital Berhad IPO prospectus

Financial overview, industry market, and personal opinion
-From the profit & loss statement, the group has been showing an increasing trend in terms of its revenue and PAT, grew from RM66.11 million and RM7.78million in FY2021 to RM151.55million and RM24.43 million respectively, or 46.43% of CAGR for its PAT within the stated period.
-The company has three channels of revenue, which the dealer section has occupied the most revenue generated from the provided FY. It is estimated that the percentage will be maintained in the following FY. The best-selling product from the company was bathroom sanitary ware, which occupied more than 80%of the market throughout FY2021 – FY2024.
-It is the 1st listing bathroom and kitchenware firm in Bursa Malaysia and hence, it is unpredictable how far (price) the company will go on the listing day since there are no listed companies to compare with.

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By: Jshen Ng