Business Activities

i）Wholesale & distribution of fresh whole vegetables, prepacked vegetables, fresh-cut vegetables, F&B products & other groceries

ii）>1,000(!) stock keeping units (SKUs) / items of vege and F&B products

iii) Operates from its Senai Centralised Distribution Centre, Johor (79k sf area)

iv) Provides value-added services: processing, packing, cutting

v) Has 6 regional distribution centres across peninsular (for F&B products)

vi) Operates 1 retail store in Ulu Tiram via direct-to-consumer model

vii) Key markets: Malaysia & Singapore (SG is 25% of revenue)

viii) Husband-wife founder team; dynamic and very hands-on; backed by 20 years experience (will still own 70%-stake in Farm Price post listing)

IPO Details

- Offer Price: RM0.24

- Application Period: 24 April 2024 ~ 30 April 2024

- Listing Date:14 May 2024

- EPS: 2.07

- Market Capitalization: RM108.0 mln

- PE Ratio: 11.6 times (based on adj. PAT)

- IPO fund raising amount: RM24.5 mln

Except for RM3.9 mln listing expenses, all proceeds go toward biz expansion:-

To double its existing Senai Centralised Distribution Centre; buy new machinery, equipment and logistics fleet; set up new regional distribution centres in Cameron Highlands and Nilai; set up new sales & marketing outfit in SG; more working capital to cater to growing biz volume.

Financial Performance

- FYE Dec 2023 Revenue = RM114.2 mln; Profit After Tax (PAT) = RM8.7 mln (7.6% PAT Margin); Adjusted PAT: RM9.3 mln after adding back listing expenses of RM0.6 mln (Adj. PAT margin 8.2%)

- FY20 to FY23 Revenue compound annual growth rate (CAGR): 16%.

- FY20 to FY23 PAT CAGR: 49% .

- FY23 Gross Margin at 20% (increase in revenue and profit in FY23 due to higher selling price, lower sourcing price, and improved efficiency)

Key Strengths

✅ Over 20 years of track record in the wholesale distribution of fresh vegetables.

✅ Strong biz acumen to manage global sourcing; deal with daily fluctuations of prices, and ensure prompt delivery of perishables to hundreds of locations. Every hour counts!

✅ Complete in-house infrastructure: 24k sf cold room facilities; own 14 refrigerated trucks and 35 delivery trucks.

✅ Extensive network of >100 suppliers in Malaysia and overseas.

✅ Serves 800-1,000 customers (eg food service operations, food manufacturers, retailers, wholesalers etc).

Growth drivers

- Doubling Senai Centralized Distribution Centre to 150k sf (increase cold room area)

- Strong demand growth from SG (GP margin double of Malaysia)

- Expand SKUs, increase value add services esp to SG

- Increase shift from 12 hrs to 24 hrs soon to cater for strong demand growth (now 99% utilisation already)

Play an important role in the national food security agenda -> to ensure adequate supply of food (ie. vege) available to public.

Current market share <1% in Malaysia; and <1% in Singapore -> ample room to grow.

Highest profit margin amongst unlisted peers in the prospectus' Independent Market Research.

Believed to be the 1st vege distribution to be listed on Bursa.

Don't miss the opportunity!