Company Background

This Company was incorporated in Malaysia on 23 June 2023 as a private limited company under the name of Sik Cheong Sdn Bhd. On 20 December 2023, they converted into a public limited company and assumed their current name. The Group’s structure after the IPO (assuming the Pink Form Allocation and the Issue Shares made available for application by Malaysian Public will be fully subscribed) is as follows:

Note: (1) Based on its enlarged issued share capital of 266,000,000 Shares after the IPO. 

The Company is an investment holding company and was incorporated to facilitate the Listing. Through their Subsidiaries, the Group’s principal business activities include: 

(i) investment holding; 

(ii) repackaging, marketing and distribution of edible oil and other food products; and 

(iii) distribution of lamp oil and other trading products

Use of proceeds

1. Expansion of their packaging facility - 40.29% (within 18 months)

2. Purchase of new delivery trucks - 5.00% (within 12 months)

3. Working capital  - 33.39% (within 12 months)

4. Estimated listing expenses - 21.32% (Within 3 months)

Expansion of their packaging facility - 40.29% (within 18 months)

As of the last practicable date (LPD), the Group operates its packaging facility at Factory No. 11 (for repackaged RBD palm olein edible oil), with a built-up area of approximately 20,484 sq. ft. Previously rented, Factory No. 11 was purchased from the Promoters on 22 September 2023 for RM10.50 million, funded by SCEO’s internal funds.

Factory No. 9 will be rebuilt into a 3-storey facility, adding approximately 18,041 sq. ft., bringing the total operational area to 38,525 sq. ft. The rebuilding of Factory No. 9 is expected to cost a total of RM5.65 million. Estimated costs for expansion and new machinery are based on contractor/supplier quotes. Any shortfall exceeding RM7.18 million will be covered by internal funds and/or bank borrowings. Surplus funds from the Public Issue will be used for working capital.

Purchase of new delivery trucks - 5.00% (within 12 months)

The group intends to its Public Issue proceeds for the purchase of 5 new trucks to deliver products to its customers, details as follows:

Working capital - 33.39% (Within 12 months)

The group has allocated RM5.95 million from the Public Issue proceeds to supplement the general working capital requirements, details as follows:

Notes: 

(1) For FYE 31 March 2024, their purchase of RBD palm olein oil amounted to RM66.51 million. As such, the allocation of RM5.50 million for the purchase of RBD palm olein oil translates to 8.27% of the annual purchase cost of RBD palm olein oil for FYE 31 March 2024. 

(2) Comprising mainly bottles, jerry cans, tin cans, polybags, labels and carton boxes. For FYE 31 March 2024, its purchase of packaging materials amounted to RM4.65 million. As such, the allocation of RM0.45 million for the purchase of packaging materials translates to 9.68% of its annual purchase cost of packaging materials for FYE 31 March 2024.

Business model

The following is an overview of the Group’s principal activities and business model:

Click here to continue the IPO - Sik Cheong Bhd (Part 2)​​​

Interested to start trading? Send your inquiry now!

​https://bit.ly/mqtatrade​

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedback coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks.

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Facebook: https://www.facebook.com/mqtrader

Instagram:https://www.instagram.com/mqtrader

MQ Chat: https://messenger.i3investor.com/m/chatmq

YouTube: https://www.youtube.com/channel/UCq-26SGjlQTVQfO7DoEihlg