IPO Series - KHPT Holdings Berhad - Proton & Perodua Automotive Parts Manufacturer

Info of IPO
Enlarged no. of shares upon listing: 402.38 million
IPO price: RM0.20
Market capitalization: RM80.47 million
Estimated funds to raise from Public Issue:  RM21.72 million
PE ratio = 14.55x (based on FY2023)
 
Business Model

Figure 2: Business model of KHPT Holdings Berhad
Source: KHPT Holdings Berhad IPO prospectus

Figure 3: Utilisation of proceeds of KHPT Holdings Berhad
Source: KHPT Holdings Berhad IPO prospectus

Dividend Policy
-The group intends to pay up to 10% of the group's PAT

Figure 5: Major customers and suppliers of KHPT Holdings Berhad in FPE2024
Source: KHPT Holdings Berhad IPO prospectus
 
Financial Summary

Figure 6: Profit & Loss statement of KHPT Holdings Berhad

Figure 7: Financial position of KHPT Holdings Berhad

Financial overview, industry market, and personal opinion
-Based on the financial position of KHPT Holdings, the liabilities to equity ratio is about 1:1, while almost half of the liabilities were from the trade payables from FY2021 to FPE2024. Interestingly, the best PAT of KHPT Holdings was recorded in FY2022, with RM8.79 million.
-According to the TIV (total industry volume) by brands in 2023, the market shares of Proton and Perodua have occupied more than 50%, with figures of 18.88% and 41.30% respectively. Meanwhile, KHPT Holdings has been providing automotive parts to its major customers, which are from Proton and Perodua.
-KHPT Holdings and Crest Group have the same closing date for the retail section, so the fund allocation might not be sufficient for both desired tiers. Analyse properly before making the decision.