HENG HUAT IPO

LISTED DATE      : 25/7/2014
MARKET             :ACE MARKET
Co-founder            :H'ng Choon Seng( MD ) , Kee Swee Lai ( Deputy MD)

SUMMARY

1. 

• Founded in 2007 
• Main activites: Manufacture of oil palm empty fruit bunch( EFB ) , Mattress
• 2 coconut production lines, 20 oil palm EFB fibre production lines, 2 Briquette production lines, 3 coconut fibre sheets production lines.
• Dividend policy 20%
• Major customer : more than 10% of revenue=  'SHENZHEN YUEMAO'(DEPENDENT ON THIS CUSTOMER)
• 30 competitive customers( RISK FACTOR)
• 52.22% Of revenue is from China customers.
• No long term contract
• Major supplier ( AKSB, YIP SHUN TING) 
• PLANT 1: HK KITARAN ( PROPOSING TO PRODUCE EFB )
• PLANT 2 : EXPANSION OF HK KITARAN 
• PLANT 3: FIBRE STAR ( MATTRESS, landlord is HH furniture)
• PLANT 4: RELOCATION OF PLANT 3
• PLANT 5: HK PALM FIBRE
• 60.29 % of total workers form NEPAL out of total employees of 549.

2. 

Heng huat         = INVESTMENT 

FIBRE star       = Mattress

 "  " Marketing  = Marketing of mattress

HH                  = Investment 

Subsidiary of HH industries

• HK FIBRE                                  : Coconut biomass
• HK KITARAN                           :Oil palm
• HK MEGA                                 :Dormant
• HK PALM FIBRE                      : Manufacturing and trading of oil palm

COMPARE OF THE PREVIOUS 3 YEARS

EPS:PAT/NUMBER OF SHARES=6.42sen

NTA                                              =0.23sen

CASH                                           = RM6,730,000

DEBT                                            =RM36,800,000 

* NET DEBT COMPANY

PE                                                 =0.45/0.00624=7( <10 considered="" div="" for="" is="" me="" normal="" still="">