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Singapore Institute of Advanced Medicine Holdings Ltd

Singapore Institute of Advanced Medicine Holdings Ltd ("Sam" or the "Company") is offering 114m new shares comprising 4.415m Public Offer Shares and 109.585m Placement Shares at $0.23 each for a listing on Catalist.  The Company aims to raise $26.2m and the majority of the proceeds will be used to repay debt and the balance for working capital. The market cap based on the IPO price is $231.8m and the offer will close on 14 Feb at 12 noon and starts trading on 16 Feb 2024 at 9am.   Principal Business SAM is a healthcare service provider using advanced technology for early and accurate diagnosis to detect and treat cancer, neurodegenerative and cardiovascular diseases.  SAM has strategic collaborations with public and private institutions for research and clinical work.  SAM's goal is to create a comprehensive one-stop ambulatory cancer centre to undertake the challenges to fight cancer and is one of the first to adopt proto beam therapy treatment in Singapore. Fi
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Sim Leisure Group Ltd

For Information Only - No public offer


First of all - my sincere apologies. I had a family matter to attend to and was rather pre-occupied with it. As the IPO has now closed, i will just do a quick summary for completeness sake.

Sim Leisure Group Ltd ("Sim Leisure" or the "Company") is offering 26.4m Placement Shares at $0.22 each for a listing on Catalist and there is no public offering. The IPO closed on 27 Feb and will be listed on 1 March 2019 with an initial market cap of $29.53m

Business
Sim Leisure is a developer and operator of theme parks based in Penang, Malaysia. The Group is a retro-eco theme park developer and operator that provides affordable quality fun where everyone can play the games of yesteryear, recreated for today. The website to the theme park is here. 


Financial Highlights


The Company's revenue has stayed consistent from FY2015 to FY2017 at around RM 9.7m but net profit declined to RM 1.3m in FY2017. Having said that, the unaudited revenue for 1H2018 jumped to RM 8.4m and net profit RM2.0m. This is due to increase in ticket price and the number of visitors with the opening of ESCAPE Waterplay in Nov 2017. If we do a simple 1H X 2 projections, revenue will likely come in at around RM 16m and net profit at RM4m.

The Company has also announced a dividend policy of 30% of its net profit attributable to owners for FY2019 and FY2020.

Assuming EPS is around 0.52 cents x 2 = 1.04 cents, the forward PE is around 21x, which is not exactly "value for money".  Assume a pay out rate of 30%, that will translate into a DPS of 0.312 cents into a yield of 1.4%. 

What i like about the Company
  • Easy to understand business  - the theme park business is pretty straightforward and any increase in ticket prices or visitors will translate to the bottom line.
Some of my concerns
  • Highly exposed to Penang Tourism - The profitability of the Company will be highly dependent on the tourism receipts. For investors who view loves that exposure, it will be a positive. Having said that, the Company is trying to diversify outside of Malaysia and the next stop will be China
  • Currency exposure - The MYR exposure can be challenging if it continues to be weak and when the Company profits is translated back to SGD for reporting purposes
  • Capex may be high - if the Company wants to expand to new geographies or expand its theme park, it will then need to incur capex and there will be risk if the rides turn out to be less than popular
  • Valuation is high - the listing valuation at 22x PER is not exactly cheap. In fact, it is pretty expensive. For comparison - Genting Singapore is trading at 16x PER and 3.4% yield. Six Flags Entertainment that is listed on NYSE is trading at 17.7x PER and 5.8% yield
Chilli Ratings

If there is a public offer, i would probably have avoided it given that there is better alternative in Genting, Six Flags or other similar companies.
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