Investing theory 2 - IPO valuation
My open letter to Lim brothers - my thoughts on Senheng IPO
Philip ( buy what you understand)
Publish date: Sun, 30 Jan 2022, 01:31 PM
Dear KH/KY Lim,
Congratulations on your IPO. Finally you are at the next stage of senhengs exciting journey. I look forward to what you will do with the proceeds of your listing, and I hope your executive strategy pays huge dividends for rewarding the shareholders who keep faith with you long term.
However, giving someone 250 million for a growing company versus a stagnating business model is a very different proposition altogether. I have friends who have put a lot of money into the senheng IPO after missing out on Mr DIY IPO (I bought with so many people writing negative articles , and the results were nothing short of spectacular), but they did not understand why the share price would tank so much.
I told them: who decided what the IPO price should be, is it fair value? Under price or overpriced? Would you buy an apartment for 1.6 million if your rental was rm40k a year? The answer is simple: how much risk am I taking, how good is the management, and is it worth it to put money in fixed deposit.
The thing is with showing the world your prospectus and balance sheet is that you open yourself to scrutiny and comparison. If you look hard enough there are thousands of senhengs listed in many countries like China (GOME), Europe (Currys), Indonesia & Japan(best denki), not to mention online retailers, rs online ( my favourite), Amazon, JD, etc etc that have grown from strength to strength, faltered and disappeared. One story I loved:
https://kr-asia.com/after-10-years-in-prison-business-legend-huang-guangyu-returns-to-chinas-retail-scene
https://en.m.wikipedia.org/wiki/Huang_Guangyu
A one time richest man in China, who started out a garbage collector.
In each prospectus is a track record of every step the company took to wherever greatness or debt. Yearly records of what they did right, what they did wrong, and the management accounts for all those electronics consumer retail decisions that led to them dominating their industry.
The 2 best 10 year annual reports and financial case studies that I would love to share with you is the performance of Best Buy and RadioShack.
https://investors.bestbuy.com/investor-relations/financial-info/annual-reports-and-proxy-statements/default.aspx
https://www.annualreportowl.com/Radio%20Shack/Annual%20Reports
Both started out same way, both became giants of the industry but both had totally different end games. Every annual report shows what the executive chairman was thinking, what they thought would work, what actually happened, and what the results were. Why is this useful to me? All these thousands of companies and their annual reports give me a deeper understanding of the challenges faced by senheng. It provides a very good understanding of where senheng is in the cycle of its growth, what is the next big roadblock ( how Amazon online rocked the industry, and how Costco and Walmart figure out how to fight back against online e retailers taking market share while growing margins).
Senheng is not the first retail electronics store chain to list, nor will it be the last. However there are a thousand lessons that we can learn from all those listed companies around the world on what problems senheng will face and what actions senheng should be looking to climb those mountains. Many others have already climbed the same hills. Even more have given up.
Now, the first thing to ask is why did senheng share price stumble while others like DIY, pekat, coraza doubled after IPO? This is more for the benefit of new investors into senheng rather than the original holders.
The simple answer is: comparative valuation. There are almost a thousand stocks to choose from in bursa Malaysia. Some are making less many than senheng, some are making more. Some are asking a fair price for the stock considering the growth, others are asking absurd prices.
I have to admit, after finding out the IPO pricing, I did not buy. Senheng was asking for 1.6 billion, an impossible price considering how long I would need to take to recover my investment. Why do I say so? Let me suggest a few similar comparisons with bursa companies in similar industries.
If we look at senheng business model, it is actually a supply chain store bringing products from branded customers and selling it in their stores. Some under consignment, others with term positions. The goal is to minimize the amount of time these electronics stay in the shop as it becomes a huge problem to get a return of investment on obselete goods an old iPhone, or to maintain selling prices on rapidly dropping competitive consumer goods like TVs, notepads and laptops. So what do we compare with?
The easiest comparable to senheng is actually a company like Harrison's.
https://klse.i3investor.com/servlets/stk/fin/5008.jsp
Why Harrison's? They have a huge supply chain arm, delivering branded goods produced by others to all the physical locations for distribution. Yes the major difference is that Harrison carries daily use items whole senheng style consumer electronics, however the business model is actually quite similar.
Harrison's has been listed for a very long time and is sellimg at a fair price with 300 million asking price (500 million revenue, 10 million net b profit per quarter), 8pe and 4% dividend yield.
They move around myr 2 billion of products per year(FMCG like colgate, gsk, redbull, heinekin ) with a small margin due to carrying other people's brand. However small margin is mitigated by being daily use items and a very good supply chain team ( delivering into the kampungs and underserved towns), which can fulfill customer needs quickly on a daily basis with a very small staff count (1000+ at last count). One of the numbers i keep going around for retail business is how much revenue generated per staff. I think the minimum 1 million ringgit per staff is a good mental model. If you can do 2 million (2 billion/1000 staff) per staff, then you are definitely a very efficient company. If your average is below 500K, then you need to be more lean. Harrision is one of the leanest in the industry, not very showy off or having big beautiful buildings, but they do their job so well, nestle and milo find no reason to get anyone else to do the distribution.
How about another one?
This mr diy shop in the middle of oustskirts jungle town of sabah, has 4 rotating staff, opens 10 am - 10 pm, no need professionals to introduce and promote products, has 500 SKUS rotating, and best of all has a revenue of 2-3k a day, rental of RM1800 a month (no need to open in mall), and 50% gross margins. 800 around malaysia with a target of opening 500 post ipo.
https://klse.i3investor.com/servlets/stk/fin/5296.jsp
Mr DIY is a giant now with 22 billion market cap( I bought it at IPO for half the price). The store count is now almost 800, and opening in many foreign countries. The most amazing thing is that their business model of buying cheap price resistant products ( like rm5 screwdriver etc), allows them to have 50% gross margins on their products, and their ability to map thousands of SKU to those 800 data points let them juggle and procure the right products that customers want over Malaysia. (As a side complaint on Senheng Kota Kinabalu a lot of the products are all left as demo sets with no stock for many items on sale, and no way to share products delivery pickups between distribution zones).
The simple question I asked my friend who bought the senheng IPO, will you ever see a senheng opening in kinabatangan or kunak? Will people ever want to buy bulk expensive electronics except in malls and cities? What is the ratio of those 2000 senheng staff that buy goods from senheng instead of online from shopee Lazada ? More importantly, will senheng with their 100 stores ever start to produce OEM white label products like Mr DIY and sell it in their own shops for good margin? If they do, will it dilute the reputation and name brand of senheng itself?
If your business is only making 3% profit margins, you better make sure your are the dominant supplier in industry, or your growth of phenomenal.
Another comparison of what we would like senheng to grow into (vertical and horizontal growth)
from a simple feedmill
into chickens and eggs
into selling own brand products, frozen food and seafood and palm oil
into opening family mart with hundreds of branches around malaysia.
https://klse.i3investor.com/servlets/stk/fin/7084.jsp
To be honest, I love studying business and how they grow over time (I also profit a lot from it). I am excited for companies like senheng, especially how cream rises to the top, from your first shop in pandan jaya , and how it took you 30K of products and 6 years to grow into your first pikiachu moment, by expanding out to your first outlet, something that many people would not have done, and in fact would have been more than happy to just keep sitting and growing that one store. You took huge risks, went about it the right way (almost exactly the same thing walmart did by not competiting in city areas, instead serving the outer regions first) you chose negeri sembilan, while walmart faced off with woolworths and jc penney by opening up shop in arkansas instead of the main cities). This is the recipe that continues to work for retail today, find underserved markets and satisfy them. That first 6 years is the most interesting to me, as there were many mistakes made and avoided and many lessons to learn from. the years post that is just a copy paste of the initial foundation that was done, and what build more store counts.
And now, you IPO. But why did it the share price tank? This is not a sign that senheng is a failure , no matter what all your friends and mine are saying who bought the stock without understanding the business.this is merely a signal that senheng is being measured on the international stage, and that they have to solve the major problems, before the share price can go up higher.
As I said before the reasons why share price drop:
1. Market timing - this is something out of your control, ignore it.
2. Market valuation - senheng is selling at too high a price compared to other businesses of a similar nature. This is the fault of bankers and your IPO team greed, but since you have benefited from it, it is time for you guys to step up. at 63% indirect ownership, your paper networth has increased to 600 million, far more than the amount of money you have put into the business. People are realizing the reality of business in malls and how tough a 4% margin business is, and many have sold to take profit off the table.
3. Transparency -You say more relevant things on your facebook page than you do on your IPO prospectus. This is hard for us to understand management policy and their actions and plans in growing the business. Think about it this way, if you were first starting out and looking for partners and giving them 40% of the company, you would treat them like partners, and give us all as much relevant information as possible, and share all the bad times and good times so we can understand what is going on in the business. The selling of the shares is just the publics way of dealing with reduced transparency on where the business will be headed moving forwards. My suggestion is that you treat your shareholders as partners-shareholders. Tell them everything, just like you would share important information with your family or fund managers and institutions. Too many businesses in bursa are tight lipped about what is going on in the businesss. You can look here for an example of what should be done on an international level:
https://www.fool.com/earnings/call-transcripts/2021/11/23/best-buy-bby-q3-2022-earnings-call-transcript/
*note the q&a session with analysts. Never be afraid of the hard questions.
So for now some of my recommendations also to my own friends who have bought senheng stock. In what situation would I buy Senheng stock? Since I am neither a technical analyst (I am horrible at this) nor am I a cigar butt fundamentalist (as my recent serba problems would show, annual financial reports are just a number), I prefer to invest via comparative growth analysis. Which is: scuttlebutt, comparing senheng to its peers and the giants to see what senheng is doing right, what senheng is doing wrong, and what the senheng approach could be (comparing with what the bigger giants have done like best buy, amazon, shopee, and costco, walmart) every seed turns into an apple, and apple into a tree, and a tree into a forest. the decisions done in between, is why I invest.
So here are my simple layman analysis from visiting all the senheng stores in Sabah and sarawak, talking to your staff and managers, finding out what the best selling items are, what problems your staff are facing, what differentiates between senheng and the other electrical shops around. I realize the problems have cascaded in recent years:
1. Selling other brands instead of senheng own - For most cases there is no problem with this: except your margins are fixed,your costs increase, you are forced to keep slow selling inventory together with fast selling ones, and targets. The biggest issue with this is profits margins become poor due to obsoletion, price sensitivity. Which links up to the next problem:
2. Online price sensitivity - Due to how easy it now becomes to check prices online on lazada, shopee, ali baba etc, everyone comes down to senheng here to "test" and see those products, and end up buying online after testing. This happens very often these days, due to the speed of delivery and quality of product increasing due to seller reputation. Amazon and Alibaba are even going to the extremes with same day delivery. Test at senheng, buy at shopee, receive the next day. The divide in prices is due to rental, staff and just pure online scalping to see how much the factory can make selling directly to customer.
3. Inventory. If you visit the senheng stores in Kota Kinabalu, you will quickly realize one thing, there are a lot of products on the shelves, but stockwise huge problem. It is either left demo unit, or no stock, or inability to supply to customer, which defeats the problem of having a store in a mall paying high rental, you want to clear as much product as possible to clients.
4. Overhead expansions & labour. Building big box stores are hard enough and costly enough as it is. But during covid, expansion costs huge amounts of money, and a lot of work is needed. Compare that to opening a new family mart or Mr. DIY, the initial expansion costs are very low in comparison, trained technical staff to sell products are not needed, and stocking of skus are easier to manage. in comparison, opening a new senheng shop is a big deal, inventories and theft are a huge problem, training good staff is always a headache, and you need huge storage warehouse for distibution for every few franchises you open.
As far as basic problems to retail business, these are all problems that you will face sooner or later, and the faster you can meet with these problems and climb above it, the faster your profits and PE will rise along with it.
So, how did comparing those companies in other countries and your competitors do it? Perhaps I can share some information on it that I have found that you can check with your team.
1. The simple answer would be this: peripherals.
https://www.businessinsider.com/10-amazon-private-label-products-that-you-didnt-know-existed-2009-9#mandoline-3
amazonbasics have been doing this for years by looking at what people are buying from their database, finding the best cost for output products and reselling it to increase margins. What items?
everyone that buys a tv needs a HDMI cable. If you buy a laptop, you need a mouse. You buy a phone you need screen protectors and repair technicians. By concentrating on these aspects of your business you could make a very strong case of low impact high margin. Create your own brand, get a team to find quality at a great price. These are what walmart, best buy and amazon are doing to survive and eat market share. What does Senheng do? Sell belkin. By researching and making white label goods you can have a big advantage versus the market. Selling SENHENG SUPREME brand HDMI cables to shops, distributors as well as your own use for that 100 stores, you can create vertical integration within your business model. This is basically the essence of what Mr DIY is doing, except with all its products. 50% gross margins.
For comparison,
https://klse.i3investor.com/servlets/stk/fin/3719.jsp
Panasonic malaysia manufacturing. Also doing consumer electronics, but manufacturing own brand product, selling at higher price structure and better profit. This takes a longer time to setup, but having a bottom up approach to the market will allows senheng to end it's inventory woes, as well as building new production lines of fast moving electronics instead of carrying many dead brands. In fact if they were about to link up with Panasonic to start producing "senheng" branded consumer electronics with industry first 5 year guarantee ( with optional 3 year extra insurance) for an 8 year bombshell, they will be able to compete in a totally different manner.
2.Online price sensitivity - This is difficult, no two ways about it. Many box retailers have gone bankrupt trying to compete on price, which is a losing battle due to the cost of rental and staff and overheads. They used to have a price guarantee where if it is cheaper at another store, they will match the price. these days, this is a recipe for disaster. So, if everyone is competing on price, what is the way?
https://www.amazon.com/amazonprime
https://www.investopedia.com/articles/investing/071015/3-reasons-costco-has-membership-fees.asp
The advantage of big box services is that you can lump more things together to sell more services and products. Costco has created a cult because it sells everything from petrol to pizza to own brand wine to insurance to doctors and pharmacy to education to food, electronics and building materials etc. I love visiting whenever I have the time because they sell everything at almost cost prices. However, there is a catch. To match online pricing and sell even cheaper than buying online, they do bulk and most importantly they only open to costco members only. By charging a minimum of USD60 a year for you to buy at costco, they are able to upsell as well as create a cult of buyers.
How would senheng position this strategy in their business model? You already have an excellent way of making additional money from credit card monthly payment (costco created their own credit card with citibank), as well as insurance. you can make even more by packaging it into charging for repair centers (phones/screen protectors), same day delivery packages, 1 to 1 exchange program, house pickup and repair etc.
The goal is simple, diffrentiate from online price sensitivity by adding SERVICES, something that online resellers cannot / will not do. By competing on price at one end, and selling something totally new on the other, you can sell more, and sell at higher margins.
3. Inventory - this definitely needs to be overhauled, no two ways about it. Your ability to get products to people that need it is the most important thing. However, your online presence and the purchasing system itself is more important. For me the question is simple: you need to go online in a useful way.
https://www.fastretailing.com/eng/group/strategy/tactics.html
Uniqlo was able to compete directly with online fashion retailers by bridging the gap, turning their shops into warehouses for easy access and pickup. You can buy online, and pickup offline at any time in store. So if there are uniqlo products that you like, you can be assured that it is always available in store, something that senheng unfortunately in sabah and sarawak cannot guarantee. Another concept that I feel should be explored is senhengs ability to leverage on the inventory and store count in the online space. Most online platforms like shopee and lazada usually carry other peoples products and help to arrange delivery etc while starting to transition into carrying own private label products to sell on their platform. I feel that senheng can actually do the opposite. They already sell products on their senheng website,but it is not as popular as lazada and shopee due to not having as much selection of products while selling at higher prices. I think if senheng starts doing as a consumer goods online platform selling both their own products, and other resellers products on the platform (while collecting fees ), they would be able to increase their online footprint. However this experience needs to be curated properly like how amazonbasics does it so as to not compete with their resellers and cause friction.
https://techcrunch.com/2022/01/27/amazon-antitrust-lawsuit-washington/
By presenting a third party reseller program from senheng, it would create a marketplace spearheaded by senheng which I think is an intreresting take on it, especially if everyone starts thinking senheng is carrying much much more inventory and products than it usually has.
4.For expansion and labour division, one way of looking at growth is with shared resources. This may be a feasible example:
https://news.microsoft.com/2013/06/13/microsoft-and-best-buy-announce-the-windows-store-only-at-best-buy/
By getting your suppliers to commit to putting internal marketing specialists to sell their products in your store you gain from a more specialised experience with people who know what they are doing, with better technical skills than your existing staff, and selling those products ina Store-Inside-Store concept it would help to market and sell their products better. Shared resources, shared costs, increased promotion and sales. Best of both worlds.
I hope that these recommendations will help a little in your rolling plan for the next 10 years on how you expect SENHENG and SENQ to grow, and I wish your team all the best.
Happy Chinese New Year,
Philip
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Discussions
3 people like this. Showing 50 of 101 comments
those staff and business partners bought ....right?
thebananaleaf 28x pe, who is the management trying to kid?
31/01/2022 10:29 PM
2022-02-01 19:58
Just to put the record straight: Even though I am naïve but my conscious is clear. How about Philip’s conscious on Serbadk?
Below my reflection on the road I took to seek the truth and I am now wondering whether I made a difference or is justice served? And what more can I do?
It had been an uphill and a difficult long walk ever since I made my decision to seek the truth and nothing but the truth when I walk out from my first ever Xingquan 8th AGM (7th Dec 2016) dumbfounded that the BOD were lying thro’ their teeth, cheating and scamming the minority shareholders with impunity and getting away with it.
Refer attachment on Xingquan 8th AGM official minutes on BOD laughable replied:
1. On the loss of RMB 415 million to supply 3.6 millions pairs of custom made shoes to the government agency: Only during full delivery of 3.6 million pairs, the group was informed verbally that the shoes were found to fall short of the specification of antibacterial and absorbent ability.
2. On the write off of doubtful debt of RMB157.5 million: It was prudent to make provision for doubtful debt on those who had delayed in payment for trade receivable for more than 90 days.
3. Is the cash in the bank real or fraud?: The cash in the bank was verified by the external auditors who had obtained confirmation and printed bank balances statements directly from the various banks, the low interest income because of low interest rate and minimum placement of funds in fixed deposit accounts.
Not helping is the uncaring and gullible external auditors and independent directors dance to the BOD’s tune.
I make my first official complain to Bursa (Bursa Ref: CC/215/16) and I am thankful to Mr. Eddie Yeo and Ms. Chong Siew Yeen of Corporate Surveillance & Governance Division granted me a meeting on 19 December 2016 where I seek Bursa advice on Requisition an EGM for forensic audit. Before that I already sent a petition letter to the then Ambassador of China His Excellency Dr. Huang and met China Economic and Commercial Counselor secretary Mr. Fang Tao who promised me to send a representative to the EGM as observer for the EGM and voting proceeding. I then approached a substantial shareholder (Holding more than 10% Xingquan share) Mr. Koon Yew Yin and met with his lawyer to finalize the EGM REQUISITION.
Unfortunately, before we can send in the EGM Requisition to the company secretary, suddenly the CFO, Independents directors and company secretary resign en masse and the Xingquan BOD becomes elusive and does not respond to Bursa’s inquiries.
I made my official complaint to SC and was invited to a joint SC and Bursa meeting at SC office on 8/8/2017. (Attachment: 8th August 2017 SC & Bursa join meeting recap) many more emails and meetings follow to follow up with SC and Bursa.
I remember I ended one of my emails to Bursa and SC with my boil over frustration on lack of information on action taken with harsh words: “Are we Malaysian surrendering our sovereign right to China? Are Red Chip companies allowed to cheat us with impunity? Is our government unable to stand up to China? If China can ask our government to send the Telephone-Cheat syndicate members (Taiwanese) back to mainland China for trial then why is it so difficult to ask China to extradite the Red Chip Companies CEO to stand trial in Malaysia? Is our government not protecting our rights anymore? Are we nothing but a nation of thieves? If so, my only hope is on GE14
My email to Mr. Koon Yew Yin and others
My journey to seek the truth on Xingquan had resulted in us crossing each other’s path and it had been a great honor and pleasant experience to meet and know you all. Our path may take us to different destinations but I will forever treasure the moment we have together. I have written the above email to SC and Bursa and am awaiting their reply.
It is an end to my journey on Xingquan albeit a very sad ending with imminent delisting of Xingquan.
I am writing this email to thank all of you and it is for Mr. Leong to give legal advice to Mr. Koon as to what action he would like to take after Xingquan is delisted from Bursa
2022-02-02 10:44
Philip ( buy what you understand)
Why are you ask treating this like pasar malam? Please refrain from posting other non relevant information in this blog post. This is why I find it irritating, write one article and suddenly different conversation come in. Why cannot stick on topic?
As for serba, I have said and admitted my mistake. I have put my selling and amount and details on when I sold it exactly as well as my explanation on what has happen. You can look at my portfolio as to the exact time and date and my comments on that.
https://klse.i3investor.com/servlets/pfs/120720.jsp#tabs_group2
You are welcome to post whatever you want on it there or start your own blog on it.
Note that even though I do not need to explain my decisions and actions to anyone, I do however publicly post my portfolio and the transactions publicly and the without editing. Immediately after I buy or sell I report clearly, unlike many of the pump and dumpers in this group.
In any case you can post if I have any conscience, as I clearly treat my transactions and reports clearly. Instead of harping on small trades or small risky investments on my portfolio, why not comment on my biggest purchase instead in pchem and start from there on my investment philosophy?
In any case, please respect my blog which is on SENHENG, and stick to discussions on that. Trying to troll other blogs are beneath you. You are like someone having a discussion on palm oil matters in a seminar and someone suddenly comes and shouts about buying in Insas! Insas! Insas! And drowning others comments.
You are not a Calvin tan eng Yee. Please respect yourself if not others.
2022-02-02 15:48
Dear Philip,
No hard/bad feeling, i wrote above on Xingquan in reponse to what you wrote about me:
Quote,"Then again, as a previous major top 10 shareholder of xinquan,
Your goal is never to understand, but more to make everyone agree with your way of thinking. Too bad your results also don't match your claims. Unquote.
My goal is how can I make a difference from my mistakes and nothing about my results nor to make everyone agree with my way of thinking.
2022-02-02 17:19
Philip ( buy what you understand)
You on the other hand, deserve neither respect of the time of day. The saddest thing is in 10,000 posts you have never had a single good word or an original opinion of what stocks to buy. You are worse than a scammer, someone who has an opinion about everything but has never gone ahead and done anything worthwhile in life. What stocks do you hold? What successes have you made in life? What challenges have you overcome? I think your online claim to fame is to tell everyone that you are the famous i3 troll, who tries to pick a fight with everyone because you show none of the qualities of a good investor.
So free to post 10,000 comments on i3, what have you done with your life up to now? Sadly only online bullying, no wife, no kids, no life, no friends.
Maybe you can actually read up on kh lim as the boys of senheng and how he has struggled through life and made something of himself.
He certainly has very little time to post 10,000 comments and waste time being a troll...
>>>>>>>>>>
i3lurker sslee
I am shocked !!!
I guess someone ran out of Suiyee Sucker Billis worth scamming inside Telegram
..........and now is coming back to toxic i3 to scrape toxic people off the bottom of the barrel, for scamming purposes of course !!!!!
2022-02-02 19:19
When we make judgements we're inevitably acting on limited knowledge, isn't it best to ask if we seek to understand, or simply let them be?
- Jay Woodman
Posted by i3lurker > Jan 31, 2022 12:01 PM | Report Abuse
otb also eyeing Inari and stated "will buy"
not too sure whether that is a good thingy or not.
Inari will be a good buy as Inari is now on new phase of expansion with the PP money of RM 1 billion.
As of Insas I am not sure what they are going to do with their cash hoard.
2022-02-03 08:00
Seng Heng listing was a joke!
Remember Seng Hup? Where is it now?
To me, Seng Heng listing is the easiest way for owners to cash out.
Not to forget this type of business model is the easiest for creative accounting!
Next year profit will be less than this year, and year after next will be worse than next year. After 3 years, Seng Heng will start to produce negative profit. This is the typical way to exit for the original owners.......
2022-02-03 12:02
qqq3,
I think MrDIY IPO is a scam.
https://klse.i3investor.com/blogs/Sslee_blog/2021-02-26-story-h1541916706-MRDIY_Can_Media_and_IB_report_be_independent_and_free.jsp
2022-02-03 12:38
Sslee, to be fair how you term a IPO as scam ?
1. Are you saying that the financial statement are not a true & fair view ? Or contained fictitious figure ?
2. As an investor you should be responsible for what you invested. As Philp put it "( buy what you understand) "... so if you still buy what you can't understand then don't blame others for your failure.
One of the human great weakness is always trying to blame others on his own failure.
>>>>>>>>>>>>>>
Posted by Sslee > Feb 3, 2022 12:38 PM | Report Abuse
qqq3,
I think MrDIY IPO is a scam.
https://klse.i3investor.com/blogs/Sslee_blog/2021-02-26-story-h1541916...
2022-02-03 16:40
Posted by CharlesT > Feb 3, 2022 12:50 PM | Report Abuse
All Brahmal's play r mostly money game
Just a very simple Yes or No answer: Are you ready to pay RM 22 billion for MR DIY’ Malaysia and Brunei Business?
2022-02-03 17:05
DIY is way way way overpriced! And it's business model can easily be replicated! However as of now, it's the only one in Malaysia that monopolize the game! Unless another high volume business comes along, DIY continues to reign!
2022-02-03 17:08
And do you know
From MrDIY annual report:
100,001 to less than 5% of issued shares: 403 shareholders: 2,137,689,781: 34.06%
5% and above of issued shares: 3 shareholders: 4,104,603,100: 65.39%
So 406 shareholders controlled: 6,242,292,881: 99.45%
Balance 7726 shareholders: 34,307,119: 0.55%
2022-02-03 17:08
agreed
>>>>>>>>>>>>>>>
Posted by Tobby > Feb 3, 2022 5:08 PM | Report Abuse
DIY is way way way overpriced! And it's business model can easily be replicated! However as of now, it's the only one in Malaysia that monopolize the game! Unless another high volume business comes along, DIY continues to reign!
2022-02-03 17:10
What is an IPO exit route?
An IPO benefits private investors looking to make money off their investment in a company. Investors who’ve invested in a company during the pre-IPO period can sell their shares for a profit, watch their share value grow or just cut their losses and quit an investment they deem unprofitable. Thus, an IPO gives private investors an ‘exit route’ to sell off stake in the company.
Key Points
- An IPO gives private investors an ‘exit route’ to sell off stake in the company.
- Lock in period is the time during which private investors can't sell their shares. It ranges from 3-24 months.
- Private investors hold what is called as private equity (PE) in companies. Often, these private entities feel a need to cash in on their investments due to pressure from their investors (people who hold equity in the private investment firm).
- After the lock in period, private investors usually sell shares they’ve decided to divest in batches, that is, in parts rather than in one go.
IPO definition and basic terms
2022-02-03 17:22
IPO is common exit stategy for private &/or angel investors. In this capitalism world naturally they are always aiming to maximise their capital gain. So as retail investors please do your home works & only buy what you understand.
The most disgusting things is to blame other for your failure.
2022-02-03 17:28
How can Bursa and SC allowed related parties transactions that amounted to conflicts of interest
A long list of related parties transactions and conflicts of interest were disclosed in the IPO prospectus.
A key one being, controlling shareholders hold controlling interest in entities for MR D.I.Y. branded retail operations elsewhere including Thailand, Singapore, Indonesia, Philippines, Cambodia, Laos, and more. They have also licensed the use of the brand to third party for retail operations in India.
These overseas operations are not consolidated into the current to-be-listed entity. The current to-be- listed entity only for MR DIY’ Malaysia and Brunei Business.
2022-02-03 17:29
I also despise a person (socialist) who believed all human should be rewarded equilly without refernce to the person's ability, efforts....
2022-02-03 17:31
All these have been disclosed & made known to the public. If SC is ok then I don't see what is the problem.
>>>>>>>>>>>>
Posted by Sslee > Feb 3, 2022 5:29 PM | Report Abuse
How can Bursa and SC allowed related parties transactions that amounted to conflicts of interest
A long list of related parties transactions and conflicts of interest were disclosed in the IPO prospectus.
A key one being, controlling shareholders hold controlling interest in entities for MR D.I.Y. branded retail operations elsewhere including Thailand, Singapore, Indonesia, Philippines, Cambodia, Laos, and more. They have also licensed the use of the brand to third party for retail operations in India.
These overseas operations are not consolidated into the current to-be-listed entity. The current to-be- listed entity only for MR DIY’ Malaysia and Brunei Business.
2022-02-03 17:34
IPO should be for business owner to tap into capital market to raise capital to expand their businese for the benefit of all the shareholders and not a pure capitalist tool to make a few rich private &/or angel investors manipulation to become richer.
2022-02-03 17:42
agree
thats why supervisors at those Gloves company should be allowed to carry leather whips, night sticks and Tasers to "encourage" slave labourers to work.
A Malaysian oem electronic firm just recently denied in Bursa announcement that a FW was beaten up for not working...
Cheers !!
Bottoms Up !!
I immediately bought that counter ...tutup mata just bought it !!!
:)
Posted by uncensored > Feb 3, 2022 5:31 PM | Report Abuse
I also despise a person (socialist) who believed all human should be rewarded equilly without refernce to the person's ability, efforts....
2022-02-03 17:46
Sslee WAKE up...la.... this is world of Capitalism. U ate are paid higher than your plantations workers due to Capitalism. In socialism your pay & your worker pay supposed to be same.
Hahahaha
》》》》》¡¡
Posted by Sslee > Feb 3, 2022 5:42 PM | Report Abuse
IPO should be for business owner to tap into capital market to raise capital to expand their businese for the benefit of all the shareholders and not a pure capitalist tool to make a few rich private &/or angel investors manipulation to become richer.
2022-02-03 18:01
Even your beloved CPC leader Deng had abandoned socialism & adopted Capitalism way in managing China economy
2022-02-03 18:05
Agree,
Cheers !!
Bottoms Up !!
Posted by uncensored > Feb 3, 2022 6:01 PM | Report Abuse
Sslee WAKE up...la.... this is world of Capitalism. U ate are paid higher than your plantations workers due to Capitalism. In socialism your pay & your worker pay supposed to be same.
Hahahaha
2022-02-03 18:05
i3lurker, hahaha
I don't care who ypu are. It is not my concern. Whether you are going to die or not also not my concern.
Definitely I don't care whether you are childless or gay, lesbian or what ever.
Haha Haha
LOL
》》》》》》》》》
Posted by i3lurker > Feb 3, 2022 5:24 PM | Report Abuse
I never confirm nor deny anything
even whether I have wife or not, children or not, male or female
even whether I am dead or alive
[this is typed by a computer storing my brain connections in Mars orbit]
Posted by uncensored > Feb 3, 2022 5:17 PM | Report Abuse
i3lurker are you one of those Suiyee Sucker Bilis
Hahahahaha
2022-02-03 18:10
In any Capitalist country like US, Malaysia, Australia and Singapore, people will get free food and free lodgings without doing any work at all.
In true Socialist countries, people who do not work are whipped and denied human food but instead given animal food for survival ... that is if they survive those beatings lah....
:)
2022-02-03 18:12
First socialism is not supposed to be like that but due the difficulty in implementing the ideology of socialism its become a failure state of so called socialism country.
Even Venezuela realised its and trying to adopt back Capitalism again.
But political turmoil & corruption has obstructed the progress
》》》》》》》
Posted by i3lurker > Feb 3, 2022 6:12 PM | Report Abuse
In any Capitalist country like US, Malaysia, Australia and Singapore, people will get free food and free lodgings without doing any work at all.
In true Socialist countries, people who do not work are whipped and denied human food but instead given animal food for survival ... that is if they survive those beatings lah....
:)
2022-02-03 18:17
Posted by qqq3333 > Feb 3, 2022 7:20 PM | Report Abuse
https://www.eurasiareview.com/01022022-how-malaysias-robber-barons-ope...
people say Malaysia is robber barons politics....well, robber baron or not, it is what it is.
and it is not going to disappear
Answer : Yeah, this writer really sum up what Malaysia is all about! SsLee, you should read this! That's why i am very pessimistic about Malaysia!
Either side are just as corrupted! Anwar vs Mahathir but they are of the same! Both want the crony capitalist system to continue! Behold, now Najib Zahid is making a comeback! Worst taht crony capitalist system! They empowered civil service top hats to the bandwagon!
2022-02-03 20:04
qqq3333 crazy old lady... hahahaha
wants to turn this forum into CPC propanganda mounth piece ....
hahahaha
2022-02-03 21:10
dun quarrel too much.
its all temporary.
everyday I see many many many pregnant Rohinya women carry a few months old baby as well....=> 2 babies a year.
:)
also if you pop into a Klinik Malaysia just to check this theory, its all Rohinyas there
Malaysia will be lost soon enough....
no need to fight amongst ourselves
2022-02-03 22:37
Lurker! Yeah, those Rohinyas really know how to breed! Some say even outbreed rats! Anyway, with the birthrate of rohinyas and banglas, i think malays will become 2nd class citizens! No wonder Myammar kick those rohinyas!
2022-02-03 22:41
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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This is a good article.
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