KUALA LUMPUR: Integrated manufacturing software solutions provider iDimension Consolidated Bhd will make its debut tomorrow on the ACE Market, according to managing director and co-founder Daniel Boo.
With software solutions in enterprise resource planning (ERP), manufacturing execution systems (MES), advanced planning and scheduling (APS), and equipment automation (EA), Boo said iDimension is a one-stop supplier of manufacturing software solutions, which makes it different from a normal software solutions provider.
“We are probably the only one in Southeast Asia doing what we are doing,” Boo said in a recent interview with The Edge Financial Daily.
With the four software solutions, ERP, MES, APS and EA combined, he said the company “is the most complete puzzle for a factory”.
“It is difficult to find one company which could house all these resources,” he added.
At an offer price of 38 sen, the company aims to raise RM14.53 million via a public issue of 38.23 million new shares of 10 sen each.
It reported a revenue of RM14.95 million in 2010 with a profit after tax of RM8.24 million. Based on its IPO price and enlarged issued and paid-up capital of 142 million shares, its market capitalisation upon listing will be RM53.96 million.
Based on this, its IPO price of 38 sen translates into a historical price-to-earnings ratio (PER) of 6.55 times.
iDimension’s focus is on the semiconductor industry, with customers such as Unisem (M) Bhd, but its software solutions are able to cater to most manufacturing environments, Boo said.
“The reason for our focus on semiconductor is because apart from the oil and gas sector, which pays top money, I think the next big buck is in the semiconductor sector,” he said.
Boo said the company’s services also entail consultation on its customers’ operations, which will then be implemented into the development of the software.
The companies which offer a complete range of services similar to iDimension’s are located in the US and Europe, according to Boo.
“The closest ones [in comparison to iDimension’s services] are HP and IBM, but they don’t offer here in Malaysia. HP and IBM are big consulting houses. They get the contracts, after which they will split among four vendors. But they are the main project managers,” he explained.
Boo said iDimension has a cost competitive advantage in Southeast Asia over the bigger companies such as HP and IBM.
“They win because of their brand, not because of their price,” he said.
iDimension owns the intellectual properties (IP) of their software solutions which are developed in-house, enabling the company to export the software with minor modifications.
Apart from software solutions, the company also receives recurrent revenue in the form of software maintenance, which contributed 4.9% to its revenue in 2010, according to the prospectus.
iDimension currently exports its software solutions to Indonesia, Singapore, China, the US, the Philippines, Japan and Thailand. Revenue from overseas markets contributed 48.25% to total revenue last year.
Boo said the listing will raise the platform for iDimension to venture and expand abroad.
As iDimension is not involved in selling capacity to the manufacturing sector, Boo said he is not worried of the cyclical nature of the sector.
Moving forward, he said, the company would look into the development of plantation management solutions for the oil palm sector. It will improve efficiency and productivity such as increasing the oil extraction rate and yield per hectare, he added.
Boo said Kuala Lumpur Kepong Bhd has developed such a software and has appointed iDimension to market it.
For 2QFY11 ended June 30, iDimension posted a net profit of RM409,000 on RM2.19 million in revenue.
This article appeared in The Edge Financial Daily, November 10, 2011.
With software solutions in enterprise resource planning (ERP), manufacturing execution systems (MES), advanced planning and scheduling (APS), and equipment automation (EA), Boo said iDimension is a one-stop supplier of manufacturing software solutions, which makes it different from a normal software solutions provider.
“We are probably the only one in Southeast Asia doing what we are doing,” Boo said in a recent interview with The Edge Financial Daily.
With the four software solutions, ERP, MES, APS and EA combined, he said the company “is the most complete puzzle for a factory”.
“It is difficult to find one company which could house all these resources,” he added.
At an offer price of 38 sen, the company aims to raise RM14.53 million via a public issue of 38.23 million new shares of 10 sen each.
It reported a revenue of RM14.95 million in 2010 with a profit after tax of RM8.24 million. Based on its IPO price and enlarged issued and paid-up capital of 142 million shares, its market capitalisation upon listing will be RM53.96 million.
Based on this, its IPO price of 38 sen translates into a historical price-to-earnings ratio (PER) of 6.55 times.
iDimension’s focus is on the semiconductor industry, with customers such as Unisem (M) Bhd, but its software solutions are able to cater to most manufacturing environments, Boo said.
“The reason for our focus on semiconductor is because apart from the oil and gas sector, which pays top money, I think the next big buck is in the semiconductor sector,” he said.
Boo said the company’s services also entail consultation on its customers’ operations, which will then be implemented into the development of the software.
The companies which offer a complete range of services similar to iDimension’s are located in the US and Europe, according to Boo.
“The closest ones [in comparison to iDimension’s services] are HP and IBM, but they don’t offer here in Malaysia. HP and IBM are big consulting houses. They get the contracts, after which they will split among four vendors. But they are the main project managers,” he explained.
Boo said iDimension has a cost competitive advantage in Southeast Asia over the bigger companies such as HP and IBM.
“They win because of their brand, not because of their price,” he said.
iDimension owns the intellectual properties (IP) of their software solutions which are developed in-house, enabling the company to export the software with minor modifications.
Apart from software solutions, the company also receives recurrent revenue in the form of software maintenance, which contributed 4.9% to its revenue in 2010, according to the prospectus.
iDimension currently exports its software solutions to Indonesia, Singapore, China, the US, the Philippines, Japan and Thailand. Revenue from overseas markets contributed 48.25% to total revenue last year.
Boo said the listing will raise the platform for iDimension to venture and expand abroad.
As iDimension is not involved in selling capacity to the manufacturing sector, Boo said he is not worried of the cyclical nature of the sector.
Moving forward, he said, the company would look into the development of plantation management solutions for the oil palm sector. It will improve efficiency and productivity such as increasing the oil extraction rate and yield per hectare, he added.
Boo said Kuala Lumpur Kepong Bhd has developed such a software and has appointed iDimension to market it.
For 2QFY11 ended June 30, iDimension posted a net profit of RM409,000 on RM2.19 million in revenue.
This article appeared in The Edge Financial Daily, November 10, 2011.
