IPO Series - Winstar Capital Berhad - Aluminium Extrusion Manufacturer 维星资本 - 铝产品制造商

Figure 1: IPO timetable of Winstar Capital Berhad
-Will be listed on the ACE Board

Info of IPO
Enlarged no. of shares upon listing: 290 million
IPO price: RM0.35
Market capitalization: RM101.50 million
Estimated funds to raise from Public Issue:  RM19.79 million
PE ratio = 12.65x (based on FY2023)
 

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

Figure 3: Utilization of proceeds of Winstar Capital Berhad
Source: Winstar Capital Berhad IPO prospectus

Dividend Policy
-The group targets to declare dividends of 30% of their annual PAT

Figure 5: Major customers and suppliers of Winstar Capital Berhad in FPE2024
Source: Winstar Capital Berhad IPO prospectus
 

Figure 6: Profit & Loss statement of Winstar Capital Berhad

Figure 7: Financial position of Winstar Capital Berhad

Figure 8: The price movement of aluminium commodity

Source:Winstar Capital Berhad IPO prospectus
 

Figure 9: The applications of aluminium extrusion

Source: Winstar Capital Berhad IPO prospectus
 
Financial overview, industry market, and personal opinion
-From the profit & loss statement, the company’s PAT has shown exponential growth, from RM2.63 million to RM8.02 million between FY2021 to FY2023, translating to a CAGR of 74.62%.
-The company is tied with the global commodity, aluminium as it is the core material for operating its businesses. Hence, any changes in the USD may exert a substantial effect on the company’s revenue as well as PAT.
-With the outburst of data center construction particularly in these few years, the demand for aluminum is anticipated to boost drastically. The major customers in FPE2024, are Kerjaya Prospek, Sunview, Sunway Winstar, etc which can expect to generate more revenues in the future.
 

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By: Jshen Ng