Author Topic: INBOX -- Inbox Business Technologies Ltd.  (Read 1412 times)

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Offline MZ

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INBOX -- Inbox Business Technologies Ltd.
« Reply #-1 on: May 31, 2017, 04:54:08 PM »
All About Inbox Business Technologies (Pvt) Limited.

http://www.inboxbiz.com/

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INBOX -- Inbox Business Technologies Ltd.
« Reply #-1 on: May 31, 2017, 04:54:08 PM »

Offline MZ

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Offline MZ

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Online Farhan Kermani

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Re: INBOX -- Inbox Business Technologies Ltd.
« Reply #2 on: June 01, 2017, 06:35:46 PM »
Not a good time to subscribe at all.

Offline Malik1

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Re: INBOX -- Inbox Business Technologies Ltd.
« Reply #3 on: July 04, 2017, 02:51:11 PM »
Book Building / IPO datess? Any one could share please?

Offline SBM

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Re: INBOX -- Inbox Business Technologies Ltd.
« Reply #4 on: July 04, 2017, 03:31:31 PM »
Book Building / IPO datess? Any one could share please?

The Registration is scheduled from July 6th to July 12th, 2017 (registration will end at 3pm on July 12th), with book building scheduled for July 11th & July 12th, 2017 (both days inclusive). The Prospectus and bidding forms can be downloaded from our website.
http://arifhabibltd.com/download/
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Offline Farzooq

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Re: INBOX -- Inbox Business Technologies Ltd.
« Reply #5 on: July 07, 2017, 11:46:20 AM »
 
Inbox Technologies Ltd - Key beneficiary of IT sector growth; IPO timing remains a concern
Inbox Business Technologies Limited (IBTL) plans to raise PKR1.36bn by issuing 45.5mn shares at a floor price of PKR30/sh, which will be utilized in financing seven new projects (worth PKR1.06bn) and working capital requirements.
Company is one of the largest IT company in Pakistan and is majorly (51%) sponsored by Dawood Group through Patek Ltd.
IBTL is expected to reap benefits from rising digitization in Pakistan along with rise in IT spending by GoP and private institutions.
At floor price, the scrip has a trailing P/E of 13x compared to average trailing P/E of 27.8x and median P/E of 17x for listed technology companies.
Although lucrative at floor price, we flag caution on the company's contractual and cyclical nature of business, and unsustainability of recurring revenues.

Introduction to Company: Inbox Business Technologies Limited (IBTL) is one of the largest IT Company in Pakistan in terms of domestic revenue and is sponsored by Dawood Hercules (51% holding through Patek Pvt. Ltd.). It has been in existence for 16 years and what started off as a computer assembly company, has now evolved into the one providing IT solutions. Its business is divided into four segments namely Citizen Service and Customer Experience (CSX) (runs all metro systems in Pakistan), Cloud and Converged Systems Integration (CSI), Enterprise Management System (EMS), and Digital Security and Intelligence (DSI).

Transaction Summary: IBTL plans to issue 45.5mn ordinary shares (39% of total post IPO paid-up capital) to raise PKR 1.36bn at floor price of PKR30/sh. 34.05mn shares or 75% of the total offering will be issued through book building at the floor price whilst the remainder will be offered to retail investors.

Utilization of IPO proceeds: The company is in the process of venturing into seven new projects in CY17, with an estimated outlay of PKR1.06bn which is expected to be financed via the IPO proceeds. The remaining amount, raised through IPO, will be used to finance their working capital requirements. Three of the seven projects namely Automated vehicle registration system, Urban mass transportation and Urban security are among the priority list, according to management. Moreover, the management has claimed that vehicle registration and mass transport projects are in the final stages of development and should be awarded to the company soon.

Key investment considerations

#1 Banking on industry growth: The management’s next five years plan reflects its aim to push IBTL towards becoming the first local IT company to achieve revenues of USD100mn. This plan is based on the premises that government spending on ICT sector will increase in-line with overall improving investment trend and upbeat GDP growth (above 5%).

Currently, ICT spending in Pakistan is ~USD2bn which is 0.7% of GDP (compared to 4.9% in Emerging Markets) and is the lowest in the region. Total revenue of the local industry is USD3bn per year, majority of which is earned through IT exports (17% is domestic). IBTL has ~9% share in domestic revenue making it the largest player in the market. As per Pakistan Software Export Board (PSEB), revenue of local industry is expected to reach USD5bn, which translates into CAGR of ~14% over 4 years.

#2 Key beneficiary of rising public sector investment: Although the has a diverse client base with various local companies involved, ~65% of the company's revenues are derived from public sector projects which are primarily concentrated in Punjab (which historically had the highest share of IT spending among provinces). Highlight of the same are the three metro bus projects where the company is managing the IT operations. Although recurring revenue is limited, the company has a 95-100% renewal rate for contracts.

#3 Fragmented competitive forces:  Competition in the local industry is fragmented with no single company competing directly with IBTL's offerings. Rather there are four main competitors competing in each of the company's business offerings, which include Techaccess, Infotech, Jaffar Business Systems and Document World Pakistan.

Key factors driving future growth:  IBTL will likely reap benefits from rising digitization in Pakistan along with rise in IT spending by GoP and private institutions. Vision 2025 for Pakistan aims at transforming urban areas into technological advanced cities with Mass transit systems and IT security solutions. We opine upsurge in IT demand will likely come in from CPEC, smart city projects, technological parks and work being done on Sindh and KPK metro projects. Hence we expect industry dynamics to be quite lucrative for IBTL where if past success is taken into account, IBTL has sufficient leeway to progress.

Balance sheet concerns:  Company has ~PKR1.9bn of interest bearing debt on its books, majority of which is in the form of short-term borrowings which is presumably taken to support cashflows amid mounting trade debts of the company (PKR1.9bn as on Mar'17), the latter being a consequence of working with public sector companies, in our view. Manage dment has claimed that proceeds above the floor price will be utilized to retire the short term debt.

Investment perspective:  At floor price, the scrip has a trailing P/E of 13x compared to average trailing P/E of 27.8x and median P/E of 17x for listed technology companies. Although lucrative at floor price, we caution investors on the company's contractual and cyclical nature of business (depressed earnings in 1H as contracts are closed), and unsustainability of recurring revenues. Moreover, current sentiment at local bourse might affect price discovery at book building stage for the scrip.

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Offline MZ

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Re: INBOX -- Inbox Business Technologies Ltd.
« Reply #6 on: July 07, 2017, 07:55:46 PM »
Elixir Insight


Inbox Business Technologies Limited

Betting Top Dollar On Public Sector ICT Projects

·         Inbox Business Technologies Limited (IBTL) started as an entrepreneurial venture in 2001 being the first local computer assembler with a brand of Inbox PC. Experiencing further transformation to cope with technological advancements, the company further evolved into an end-to-end IT solutions provider and currently provides IT Infrastructure enablement and services under Managed Services Provider (“MSP”) model to public & private sector clients.

·         Inbox Business Technologies Limited (IBTL) intends to issue 45.4mn ordinary shares (~39% of post-IPO outstanding shares) at a floor price of PKR 30/share.

·         The current line of business consists of 4 segments which includes Citizen Services & Customer Experience (CSX), Cloud & Converged Systems and Integration (CSI), Enterprise Management Services (EMS) and Digital Security & Intelligence (DSI).

·         Our LTM/forward PE multiple suggest PT of PKR42/49. That said, our fair value estimates is based on forward PE multiple and advise investors to participate in the book building/IPO up to the price of PKR43/sh to realize a potential 15% capital gain in 2017.

Offline MZ

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Re: INBOX -- Inbox Business Technologies Ltd.
« Reply #7 on: July 09, 2017, 03:35:32 PM »
Inbox Business Technologies Limited ( IBTL ): Subscribe till PKR 43.8

Friday, 07 July 2017

By: Ismail Iqbal Securities (Pvt.) Limited
The book building of Inbox Business Technologies Limited (referred to as Inbox hereafter) is scheduled for July 11 and 12, 2017. Inbox is an IT company that provides end-to-end IT solutions to clients. It enjoys the biggest domestic market share, and its clients consist mostly of Pakistani Governments. We recommend investors to subscribe to the stock in its book building upto a price of PKR 43.8, 10% below our target price of PKR 48.2, which is 21 times the EPS reported in 2016, and 13 times the EPS the management expects for 2017. Apart from its cheap valuation, we like the stock because it is Shariah compliant, which means the stock will have greater demand than if it had been non-Shariah compliant. Moreover, it has a stable revenue stream because the contracts awarded by its clients are usually long-term, of 4-6 years. Inbox is raising funds from the IPO so that it can invest in upcoming projects, including the development of an automated vehicle registration system and an Urban Mass Transportation system. We expect these projects to add PKR 1.17 to Inbox’s EPS. Two weaknesses of the company compared to its peers are that, firstly its sales mix relies very heavily on the Pakistani Government (65%) and secondly it does not make any substantial exports, which is why it is at a tax disadvantage compared to its peers.
Inbox is raising funds from the IPO so that it can invest a majority of the proceeds (78%) in upcoming projects, including the development of an Automated Vehicle Registration system, which will require an estimated PKR 457m, and an Urban Mass Transportation system, which will require an estimated amount of PKR 393m (see table on right for details of other smaller projects). The management expects the contracts for these two big projects to be awarded later this year and for revenue generation to start within a few months after the awarding. The expected timeline for these projects is 4-6 years, and the management expects to generate eight times the revenue as the expected outlay. Keeping all of the above management guidance in mind, we expect incremental EPS from the planned projects to be around PKR 1.17 at a net profit margin of 8%. See table on the right for other scenarios.
According to Inbox’s Information Memorandum, the management expects sales to grow at a CAGR of 17.9% from PKR 5.6bn in 2017 to PKR 10.8bn in 2021. As it expects margins during this time to expand too, it expects earnings to grow at a CAGR of 37.2%, from EPS of PKR 3.71 in 2017 to EPS of 13.16 in 2021. See table at the end for Inbox’s historical financials and the management’s earnings projections.

Offline momo

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Re: INBOX -- Inbox Business Technologies Ltd.
« Reply #8 on: July 25, 2017, 08:16:40 PM »
What happened with the IPO? No news. I haven't been following lately so am not up to date. Any information would be helpful.

Offline SBM

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Re: INBOX -- Inbox Business Technologies Ltd.
« Reply #9 on: July 26, 2017, 02:54:09 PM »
What happened with the IPO? No news. I haven't been following lately so am not up to date. Any information would be helpful.

they posted plenty of notices on the exchange
ipo postponed due to market conditions
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