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Thursday March 8, 2007
Good performance by new listings this year
By Yeow Pooi Ling
PETALING JAYA: Most of the companies that listed their shares this year have managed to outperform the market despite the recent spate of heavy selling sparked by concerns that the Chinese government was tightening measures on foreign investments.
There have been seven new listings so far. They are Quill Capita Trust, MY E.G. Services Bhd, Al-Hadharah Boustead Real Estate Investment Trust (REIT), Pantech Group Holdings Bhd, Amanah Raya REIT, H-Displays (MSC) Bhd and Dufu Technology Corp Bhd.
Except for Amanah Raya REIT, the rest have outperformed the market.
Aseambankers head of research Vincent Khoo said the good showing was expected since new listings were typically priced at a slight discount to their peers. “It would take time for the market to price in their prospects,” he said.
Dufu, which joined Bursa Malaysia on Feb 28, was listed during the market downturn. Nonetheless, the counter managed to close 17% higher on its debut while the Kuala Lumpur Composite Index slid 3.3% that day.
The hard disk drive component maker aims to double the revenue contribution from sensor components to 12% in three years.
The best performing among the newly listed companies in terms of share price appreciation is MY E.G., which has gained some 177% to date.
Last month, MY E.G. had proposed to buy 79.46% of its rival, MYSpeed.com Sdn Bhd, for RM7.95mil cash. The two companies provide e-Government services.
There are several upcoming initial public offerings (IPOs). They are Ogawa World Bhd, Tejari Technologies Bhd, Melati Ehsan Bhd and Atrium REIT.
Khoo said the new IPOs could be subject to “lingering uncertainties” in the market.
“Beyond this bounce, in the short term, the market could be sidelined and there could be a slight reversal in global trading liquidity,” he added.
The research house would continue to favour fundamentally-backed large-capitalised companies over those with concept themes, especially those with low price-to-earnings multiples, good earnings growth and high dividend yield.
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