Lowyat.NET: Latest topics by jack~daniel

IPO :Big Caring Group Bhd (BCG)

jack~daniel — Sat, 15 Aug 2026 12:41:32 +0800

Big Caring Group Bhd (BCG) — IPO analysis

What it is: BCG is the operator behind BIG Pharmacy and CARiNG Pharmacy — Malaysia's largest organised pharmacy retail chain (626 outlets), backed by private equity firm Creador. It's headed to the Main Market of Bursa Malaysia. Important caveat up front: this is a draft/preliminary prospectus. Every price field is marked "RM[●]" — the Retail Price, Institutional Price, and expected market cap are all still undetermined. Nothing here is final.

The business case
Revenue and EBITDA both grew strongly across FY23–25 (revenue CAGR 75.3%, EBITDA CAGR 87.9%), largely driven by the 2023 CARiNG Pharmacy acquisition and continued organic expansion.
Margins are improving: EBITDA margin rose from 9.6% to 11.2%, PAT margin from 3.7% to 4.2% over the same period.
BCG is the clear market leader — ~22.6% revenue share versus the nearest competitor's 5.3% — in an industry projected to grow at 7.7% CAGR through 2030 (organised chains faster, at 10.9%).
Dividend policy targets up to 50% of consolidated net profit, though the FY25 payout ratio was only 6.0% (FY24 was 55.6%) — inconsistent so far.
The concerns
Leverage is elevated and rising: gearing climbed from 2.1x to 3.1x over FY23–25, with total bank borrowings of RM1.3 billion as of end-January 2026. A meaningful chunk of IPO proceeds is earmarked for debt repayment — that's a plus, but it also signals the balance sheet needed the IPO to delever.
Current ratio is below 1.0 in FY23 and FY25 (0.996 in FY25) — tight short-term liquidity, typical of aggressive-acquisition retail rollups but worth watching.
This is a heavy secondary sale. Of the ~25.5% being offered, roughly 17.5 percentage points are existing shares from Creador and the founders (offer for sale), not new capital into the company. A large PE exit alongside listing is a normal but real signal worth weighing.
No exact valuation yet, but press reports point to a target of raising up to RM3 billion. If that raise is spread across the ~1.88 billion IPO shares, it implies a price near RM1.59/share and a trailing PE in the mid-90s — roughly double the ~48x average of the closest Bursa-listed peers (Mr DIY, Eco-Shop, 99 Speed Mart, 7-Eleven Malaysia, ranging 27.7x–70.8x). That's the single biggest question mark: BCG would need to justify a serious premium to its already-rich peer set purely on growth and market-leadership story.

Recommendation

Cautiously interested, not a clear buy at current indications. The underlying business — market leader, structurally growing category, improving margins — is genuinely attractive, and the growth profile beats every listed peer's. But two things hold me back from a straightforward "buy":

Rising leverage and sub-1.0 liquidity ratios mean this isn't a pristine balance sheet — you're partly buying a deleveraging story, not just a growth story.
If the rumoured RM3 billion raise target holds, the implied pricing looks stretched versus peers on a PE basis, even generously accounting for BCG's superior growth.

On price: I wouldn't pay a blind premium here. Fair value on a peer-comparable basis (applying the 27.7x–70.8x range, averaging ~48x, to the 1.66 sen FY25 EPS) works out to roughly RM0.45–RM1.20 per share, with a reasonable midpoint around RM0.75–0.85. If the actual Retail Price comes in meaningfully above that — closer to the RM1.50+ level implied by the RM3bn raise chatter — I'd treat it as priced for perfection and wait for the stock to settle post-listing rather than subscribing at the top of the range. If it prices closer to RM0.80–1.00, that's a more defensible entry given the growth and market-leadership premium.

Since the actual Retail Price, Institutional Price, and prospectus registration are still pending, I'd watch for the SC's final registered prospectus (expected pricing announcement typically comes shortly before the listing, reportedly targeted around October 2026) before deciding — the numbers above are estimates, not the company's own disclosed pricing.

IPO : ECOSYS (MALAYSIA) BERHAD

jack~daniel — Mon, 29 Jun 2026 10:49:46 +0800

What Ecosys actually does: They serve the pan-semiconductor industry through two segments — ultra-high purity (UHP) precision fabrication of metal/plastic components (66% of revenue), and proprietary abatement systems that neutralise toxic gases from semiconductor fabs (34% of revenue). Customers span Singapore, Malaysia, India, US and Taiwan, including major multinational semiconductor equipment makers.
The valuation picture at RM0.27
At RM0.27 per share with 571.35M shares, the implied market cap is RM154M. The PE multiple depends heavily on which year you use:

FY2024 historical PE: ~16.7× (PAT RM9.24M) — not cheap for ACE Market
FY2024 adjusted PE: ~19.3× (excluding one-off items) — stretched
Run-rate PE based on FPE2025 (6 months): ~10.8× — looks more attractive

The FPE2025 half-year was clearly stronger, with GP margins hitting 24.5% — the best in the entire review period — and PAT margin recovering to 13.2% after the FY2024 dip to 10.4%. If that run rate is sustainable, the stock is reasonably priced. If it reverts to FY2024 levels, it's expensive.
The three things that could make or break this investment

Customer concentration is the biggest red flag. Two unnamed customers account for roughly 59% of revenue, there are no long-term contracts, and orders can be cancelled any time. The FY2022→FY2023 revenue drop of 30% happened largely because of demand normalisation from bulk purchases — it could happen again without warning.
The semiconductor cycle exposure is real. Revenue swung from RM105M to RM74M to RM89M — a 30% drawdown in one year followed by a 20% recovery. The business is essentially a leveraged play on semiconductor capex, which is notoriously cyclical.
Zero FX hedging despite nearly 100% foreign-currency transactions is a material oversight. If MYR strengthens against SGD/USD significantly, margin compression follows directly.

What supports a small position
The proprietary abatement IP (CDO, Vector, Marathon, Guardian brands — SEMI and CE certified) is a genuine moat in a growing niche. The India expansion is timely given the surge in semiconductor manufacturing activity there. Management has strong relevant experience. And if FPE2025 margins are a genuine structural improvement rather than a blip, the 10.8× run-rate PE is attractive.
Bottom line: This is a cautious buy for a small position with a short-to-medium holding horizon. The listing-day pop potential exists — ACE Market semiconductor-adjacent IPOs have historically gotten speculative interest — but the fundamental risks (customer concentration, no contracts, FX exposure, cyclicality) make it unsuitable as a core holding at size. Wait to see the final prospectus with the actual PE stated by M&A Securities, and watch opening-day price action before committing beyond a small allocation.

Honestly? I'd pass on this one — or at most take a very small speculative position for the listing-day pop only.

Here's my reasoning:

The business is fundamentally sound. Proprietary IP, cleanroom capability, MNC customer relationships, and a genuinely exciting India growth angle. But the structure around it makes me uncomfortable at RM0.27:

The customer concentration alone is a dealbreaker for me at this valuation. Two customers, no contracts, 59% of revenue. That's not a risk factor buried in fine print — that's the single most important fact about this company. If Customer A or Customer B reduces orders by 30%, the PAT could go negative. And you'd have no warning until it's already happening.

The FX situation is just careless. Nearly 100% of transactions are in foreign currencies and they hedge nothing. For a company of this size with established operations, that's a policy choice I don't like. It means reported earnings are partly a function of MYR/SGD movements that management isn't managing.

The operating cash flow concern is underappreciated. FPE2025 showed negative OCF of RM1.6M. The profit is real, but the cash isn't arriving — it's sitting in a 220-day inventory pile and slow-moving receivables. They need IPO proceeds partly just to fund working capital. That's not a company generating cash comfortably; it's a company that needs external funding to keep growing.

The valuation isn't cheap enough to compensate for these risks. If it were at 7–8× earnings, I'd take the customer concentration risk. At 10–19× depending on which year you use, I'm being asked to pay a growth premium for a business with no contracted revenue and a history of 30% revenue swings.

Where I'd genuinely reconsider: if it listed and dropped to RM0.20–0.22 in the secondary market (giving a 7–8× run-rate PE), or if they announced a third major customer anchor — that would materially change the risk profile.
So no, I wouldn't buy it at RM0.27 as a meaningful position. The listing-day gamble is a different question — that's about market sentiment and IPO momentum, not fundamentals — but as an investment, the price doesn't compensate for the risks.

IPO : Enest Group Berhad

jack~daniel — Fri, 10 Apr 2026 22:12:08 +0800

What the Company Does
Enest is a bird's nest (edukung burung) company — it processes raw unclean bird's nest (RUBN) into cleaned and ready-to-export bird's nest (RCEBN), trades raw EBN, and sells processed bottled bird's nest products. Its subsidiaries Ming Feng and Dynamic Transforms are among the top 10 Malaysian exporters of RCEBN to China by volume. This is a transfer listing from the LEAP Market to the ACE Market.

🟢 Positives
1. Consistent revenue growth. Revenue has grown every year — RM113M → RM120M → RM146M — with FY2024 showing a strong 21.5% jump. This is the opposite of Sum Technology's revenue decline.
2. PATAMI growing strongly. Profit attributable to shareholders grew 20.5% in FY2024 to RM8.04M. Earnings momentum is clearly positive.
3. Sector tailwinds are real. Malaysia EBN exports grew at a 12.9% CAGR from 2019 to 2024, and the industry is forecast to grow another 11.9% CAGR to 2027 — driven by rising Chinese consumer demand and health consciousness. This is a genuine structural story.
4. Market leader credentials. Ming Feng and Dynamic Transforms are in the top 10 Malaysian RCEBN exporters to China — a meaningful competitive position in a fragmented market.
5. China concentration is actually improving. China revenue has dropped from 91.9% to 67.4% of total, while Malaysia grew from 6.8% to 31.4%. Diversification is happening organically.
6. No order book risk. Unlike project-based businesses, Enest operates on purchase order flow — revenue is recurring in nature rather than lumpy.

🔴 Concerns
1. Gross margins are compressing. GP margin has fallen from 12.5% to 10.3% over three years. This is partly due to a shift toward trading of raw EBN (lower margin) vs processing (higher margin). If this trend continues, profit growth may slow.
2. Still highly dependent on China. Even at 67.4%, China remains the dominant market. Any tightening of GACC (Chinese food safety authority) regulations, export quota restrictions, or geopolitical friction could materially hurt the business. The prospectus explicitly flags GACC registration renewal as a key risk.
3. Labour-intensive processing. Cleaning bird's nest is done manually by hand — the company relies heavily on skilled foreign workers. Labour shortages are a real operational risk.
4. Rising debt. Total borrowings surged from ~RM5.7M (FY2022) to RM17.8M (FY2024). This coincides with property purchases and business expansion, but it's a notable increase in financial leverage.
5. No dividends paid in FY2022–2024, and none planned until listing. With no formal dividend policy, shareholders rely entirely on capital appreciation.
6. Thin PAT margins of ~5.8%. Profit margins are stable but slim for a food processing business. There's not much buffer if costs rise or selling prices drop.

The Key Takeaway
At RM 0.14, Enest trades at a PE of only 10x — well below the peer average of 17.75x and less than half of comparable listed EBN players like Beshom (23x) and Xiamen Yan Palace (23x). If the market were to re-rate Enest toward the peer average, you'd be looking at a share price of around RM 0.25–0.30 — roughly 80–100% upside from IPO price.
The fundamentals haven't changed — revenue growing 21.5%, PATAMI up 20.5% in FY2024, recurring purchase-order revenue, top-10 RCEBN exporter to China. But at half the price, the margin of safety is meaningfully better. The risks (GACC dependency, compressing GP margins, rising debt, no dividends) remain the same, but you're being compensated much better for them.

IPO : AMS Advanced Material

jack~daniel — Tue, 31 Mar 2026 12:23:40 +0800

What They Do
AMS is a trader and processor of semi-finished aluminium and copper products — essentially a middleman that imports aluminium sheets, plates, coils, extrusions and copper products, break-bulks them, and distributes to manufacturers in Malaysia (primarily in E&E, semiconductor, construction and automotive). They are expanding into aluminium architectural products manufacturing and scrap recycling.

The Growth Story is Real
Revenue has genuinely grown fast — from RM60.5M in FY2023 to RM129.7M in FY2025, almost doubling in two years. This rides on Malaysia's booming semiconductor and E&E manufacturing investments, and their strategy to expand from pure trading into processing/manufacturing (which should command better margins). That story is credible and the market tailwind is real.

The Fundamental Problem — Margins
But here's the issue: this is a trading business, and trading businesses are structurally low-margin. At 6.6% PAT margin, every RM100 in sales leaves only RM6.60 in profit. When something goes wrong — a customer leaves, aluminium prices spike, the ringgit weakens — there is very little cushion. This also makes the PE of 20.7× very hard to justify. You'd normally pay 20× PE for a high-margin, high-growth business. Paying 20× for 6.6% margins is risky.

Customer Concentration is a Real Threat
Customer A contributed 20.95% of FY2025 revenue with no long-term contract. In a low-margin business, losing that single customer doesn't just reduce revenue — it can turn a profitable year into a loss year. This is the single most important risk to understand before investing.

Verdict
Proceed with caution. The growth momentum is genuine and the sector tailwind is favourable, but you're paying a growth stock price (20.7× PE) for a commodity trading business with thin margins, single-customer concentration risk, no dividend policy, and meaningful forex exposure. it could work well if the Penang manufacturing plant upgrades margins, but there's limited downside protection if anything goes wrong.

IPO :Liftech Group Berhad

jack~daniel — Tue, 31 Mar 2026 11:12:24 +0800

What Liftech Does
Liftech is a Malaysia-based industrial lifting and handling equipment company with 33 years of track record. They design, manufacture, install, and service cranes, hoists, and aerial work platforms. They operate 8 facilities nationwide and derive ~97% of revenue from Malaysia. It's listing on the ACE Market (the higher-risk alternative market for emerging companies).

Valuation at RM 0.29
At the indicative price:

Market cap: RM 91.3 million
P/E ratio: ~13.9× based on FY2024 PAT of RM 6.58 million — this is reasonable for an ACE Market listing, not cheap but not egregious
Premium to net assets: 107% — you're paying RM 0.29 for a share with net assets of RM 0.14, which is a significant premium, though common for profitable companies on listing

What's Attractive
The most compelling part of the story is gross profit margin expansion — from 27.5% in FY2022 to 40.3% in FY2024. This suggests the company has been moving up the value chain and improving pricing power. Revenue also recovered strongly to RM 57.7M in FY2024 after a dip in FY2023. They have a diversified customer base (top 5 customers contributed only 18.8% of revenue in FY2024) which reduces dependency risk.

Key Concerns
The biggest red flag is that PAT actually fell from RM 6.72M in FY2023 to RM 6.58M in FY2024, even though revenue and gross profit grew. This means cost inflation is eating into profits at the bottom line level. The business is also project-based and lumpy — there are no long-term contracts and revenue can fluctuate significantly year to year. The prospectus is also frank that they are key-man dependent on their executive directors.
The 107% premium over net assets at RM 0.29 means you're entirely pricing in future earnings growth. If growth doesn't materialize, the downside is meaningful.

Overall Verdict
Cautiously consider, not a strong buy at RM 0.29. The business is fundamentally sound with improving margins and a long track record, but the valuation already reflects a fairly optimistic scenario. The PE of ~14× is fair — not a bargain — for a small ACE Market engineering company with project-based revenue. If you're looking for a short-term listing gain, it depends heavily on market sentiment and IPO subscription demand, which is hard to predict. For longer-term investors, the margin expansion trend is encouraging, but watch whether profits recover in FY2025.
As always, this analysis is not a substitute for advice from a licensed financial adviser. Consider your own risk tolerance — the ACE Market explicitly carries higher investment risk than the Main Market.

Saman AES

jack~daniel — Thu, 03 Oct 2024 11:30:22 +0800

How can you resolve an AES summons if you missed your court date? What steps should you take to address the situation and ensure compliance?

The employer fails to remit the EPF and PCB

jack~daniel — Thu, 08 Feb 2024 19:44:12 +0800

Hello Guys,

My company deducts my income for EPF (Employee Provident Fund) and PCB (Potongan Cukai Berjadual), but the funds are not being deposited into my EPF&PCB account, where should I file a report?

I can't afford a lawyer

Total IVF Cost

jack~daniel — Wed, 16 Aug 2023 12:18:11 +0800

Hello, how much is the total cost ( all in) for an IVF package at Alpha IVF Fertility Center Malaysia? Does anybody have an experience with them?

J&T - ON HOLD

jack~daniel — Wed, 25 May 2022 20:34:52 +0800

What does it mean by "Delivery service was delayed due to external factors"?

Can an employee refuse to travel due to Covid-19

jack~daniel — Mon, 25 Apr 2022 19:01:06 +0800

I was asked to travel out of Malaysia to a high-risk country, is there any law to protect employees from being force to travel out of country due to pendamic.

Motorcycle Parking bay at Menara UOA Bangsar

jack~daniel — Mon, 06 Jul 2020 19:49:02 +0800

Where to park a motorcycle around Menara UOA Bangsar?

IPO:Mi Equipment Holdings Bhd (MiE Holdings)

jack~daniel — Thu, 22 Mar 2018 11:12:16 +0800

https://www.sc.com.my/prospectus-exposure-m...oldings-berhad/

Wireless Brige

jack~daniel — Sun, 22 May 2016 20:36:27 +0800

Guys,

I'm using router RGX4400 which is standard router provided by TM Unifi, the distance to my router is impossible for me to pull the RJ45 cable from 2nd floor to 1st floor, so I've been thinking to consider wireless router, which router is possible to bridge with RGX4400 wirelessly. Any guys can recommend as there are many routers in the market.

Wall Mirror

jack~daniel — Sun, 20 Mar 2016 19:36:22 +0800

Does anybody know where to buy custom made mirror in Kajang/cheras/puchong area?

Najib Facebook

jack~daniel — Mon, 01 Feb 2016 11:49:03 +0800

Well, lately I saw positive comments on our beloved PM FB, I was curious where were the haters, most of positive comments were from fake accounts created by BN cyber troopers, so I wrote the negative comments about 2.6B issues, surprisingly I'm being blocked from his FB. Do you guys having the same problem same as me?

Honda City IDSI Alarm Security Problem

jack~daniel — Mon, 29 Jun 2015 08:56:09 +0800

Hi Guys,

I believe some of you might have the same problem with me, my security system has a problem, it won't started unless the alarm receiver receives the signal from key transponder, I thought my key transponder was out of battery, I brought the spare transponder to activate the alarm, but it didn't happen. I knew it was my security system problem, so I reset the alarm ( disarm the battery, reconnect the battery after few seconds, hold both buttons simultaneously), and I successfully start the car's engine, but the problem is the security system doesn't work anymore. So how to fix the alarm problem?, changing to the new alarm system is one on my list, how much does it cost for new set alarm system? does it necessary?

Wolf Warrior - Chinese action movie

jack~daniel — Mon, 29 Jun 2015 08:33:45 +0800

[YOUTUBE]RR02p8KkwfM[/YOUTUBE]

Retrenchment - Oil & Gas

jack~daniel — Tue, 02 Jun 2015 13:29:53 +0800

Guys,

I heard SBM has started laying off some employees for their 2nd retrenchment exercise.Is it true?

Impian Heights Apartment, Puchong Jaya

jack~daniel — Sun, 03 May 2015 15:57:53 +0800

Impian Heights Condominium, FOR SALE!
Jalan Pipit, Bandar Puchong Jaya, Puchong,
Selangor

RM 410,000

- Freehold
- Size: 1,066 sf
- 3 Bedrooms / 2 Bathrooms
- Renovated with kitchen cabinets, plaster Ceiling, Lightings & etc.
- Well kept unit
- Partly furnished - Bed, Wardrobe, Sofa, Dining Table, TV Cabinet.
- Strategic location
- Non-Bumi

Facilities:
- 24 hours security
- Swimming pool
- Barbecue area
- Parking lots
- Children Playground
- Tennis court

Amenities:
- Primary and secondary schools
- Shopping - IOI Mall, Tesco, Giant, Sunway
Pyramid etc.
- Banks
- Petrol kiosks
- Colleges
- Cafes and restaurants
- Other convenient shops

Accessibilities:
- LDP Highway
- Elite Highway
- NPE Expressway
- Seri Setia KTM Station
- Upcoming LRT station

Please feel free to contact Falaah for
more details and viewing arrangement:

H/P : 013-2965947 (Direct Owner)
Read more at hhttp://www.mudah.my/Impian+Heights+Bandar+Puchong+Jaya+Puchong-35363458.htm

Doctors who rent space

jack~daniel — Mon, 23 Mar 2015 08:20:54 +0800

ETALING JAYA: The consultancy fee of doctors who rent space at private hospitals will come under the 6% Goods and Services Tax (GST).

This was finalised at a meeting between the Customs Department and representatives of private hospitals last Friday, said Customs Department GST director Datuk Subromaniam Tholasy.

Describing the arrangement as “a bit unique”, he said doctors employed by the hospital would however be exempted.

“The issue is with consultants who are just renting space in the hospital.

“As they do not belong to the hospital, their fees are subject to the tax,” he said.

Subromaniam said the doctor’s charges would be stated as GST-inclusive.

“The hospital is just a conduit. The receipt will not show GST unless they have taxable supplies, like administration fees,” he added.

Therefore, those seeking private consultants would see an increase in fees, he said.

“Let’s say the hospital bill is RM5,000 and the consultant’s fees is RM1,000.

“After GST, his fees will be RM1,060 plus RM5,000,” Subromaniam added.

Subromaniam assured the people that the overall increase would not be very much, as it would be offset by the removal of the service tax for catering or accommodation.

Consultant specialists will still have to follow the present fee schedule agreed upon by doctors and the Government.

“Normal GP clinics will have no impact as their services are totally exempt.

“The actual impact will be negligible,” Subromaniam said.

He also urged independent doctors with an annual income of over RM500,000 to register before April 1.