Business

Friday August 31, 2012

Pasukhas marches on despite UMA query

By YVONNE TAN
yvonne@thestar.com.my


PETALING JAYA: ACE market company Pasukhas Group Bhd continued its meteoric rise on its second day of listing, surging 15% to close at 70 sen.

The counter had hit a high of 82 sen earlier in the day despite receiving an unusual market activity query on its debut day on Wednesday after its share price rose more than 400%.

“This is a small mechanical and engineering company, the way the price has gone up is hardly justified,”a dealer with a brokerage remarked.

Interestingly, most of the company's placees have not sold their shares despite the significant rise in the share price, according to another dealer.

“Except for some 10 million shares which crossed to an unknown party at 26 sen a piece on Wednesday, most of the placees still have their shares,” he said.

Of the 90 million shares sold at the company's initial public offering (IPO), about 55 million were placed out to 14 selected investors with the top placee taking up 23% of the company's shares that were placed out, according to stock exchange data.

TA Research in a note on the company fairly valued Pasukhas at its IPO price of 12 sen. The research company pointed out that the company was dependant on four companies which currently contributed more than 80% to the company's sales.

Still, it has an order book of RM67.9mil now that would last for one and a half years and has placed tenders amounting to RM100mil.

The company has said that it hopes to win at least 10% of the bids.

It is also planning to increase overseas business contribution.

Up to the second quarter of this year, 93.4% of its revenue was from Malaysia, 1.2% from Gulf Cooperation Council countries and 5.6% from Indonesia.

On a pro forma basis, Pasukhas' profit after tax was RM1.3mil on the back of RM25.8mil revenue for 2011.

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