IPO Series - SUPREME CONSOLIDATED RESOURCES BERHAD - Frozen Food Distributor

Figure 1: IPO timetable of SUPREME CONSOLIDATED RESOURCES BERHAD
-Will be listed on the ACE Board

Info of IPO
Enlarged no. of shares upon listing: 430 million
IPO price: RM0.25
Market capitalization: RM107.50 million
Estimated funds to raise from Public Issue:  RM17.50 million
PE ratio = 11.65x (based on FY2023)
 

Figure 2: Business model of SUPREME CONSOLIDATED RESOURCES BERHAD Source: SUPREME CONSOLIDATED RESOURCES BERHAD IPO prospectus

Figure 3: Utilisation of proceeds of SUPREME CONSOLIDATED RESOURCES BERHAD
Source: SUPREME CONSOLIDATED RESOURCES BERHAD IPO prospectus

Dividend Policy
-The group doesn’t have a fixed dividend policy and envisages a dividend payout of up to 50.00% of the future PAT

Figure 5: Major customers and suppliers of SUPREME CONSOLIDATED RESOURCES in FPE2024
Source: SUPREME CONSOLIDATED RESOURCES BERHAD IPO prospectus
 

Figure 6: Profit & Loss statement of SUPREME CONSOLIDATED RESOURCES BERHAD

Figure 7: Financial position of SUPREME CONSOLIDATED RESOURCES BERHAD

Figure 8: Revenue by segement of SUPREME CONSOLIDATED RESOURCES BERHAD

Source: SUPREME CONSOLIDATED RESOURCES BERHAD IPO prospectus

Financial overview, industry market, and personal opinion
-From FY2021 to FY2023, the PAT has grown from RM7.65million to RM9.22million, or a CAGR of 9.78%. However, the highest PAT margin is obtained in FPE2024, with 4.74% compared to the previous highest margin, 4.62% in FY2023.
-Based on selected industry players like Farm Price, Ocean Fresh, and SDS, the gross profit margin and PAT margin are not similar to these players, as recorded as 12.0% and 4.6% respectively. However, the main product of SUPREME is the distribution of frozen foods and thus, it is appropriate to be used only as a reference.
-According to the previous IPOs like Ocean Fresh and Farm Price, they were performing well during the listing day, but the current IPO movement is getting difficult to foresee its listing trend.

By: Jshen Ng