A big wow to EDELTEQ 0278 EDELTEQ HOLDINGS BERHAD on its debut. Can it go higher?
Edelteq Holdings Bhd joined the list of top performing IPOs on Bursa Malaysia on their debut.
The engineering support provider for integrated circuit (IC) assembly and test processes was on fire as it made a strong debut on the ACE Market on June 7.
The counter opened at 75 sen, skyrocketing 212.5% from its IPO price of 24 sen.
At market close, its share price retreated slightly to 73 sen, marking a closing premium of 204.17%.
Edelteq's closing premium was the third highest among the stocks that have debuted on Bursa this year.
As of June 6, Oppstar Bhd had the highest premium at 285.71%, followed by TT Vision Holdings Bhd (276.47%).
Edelteq closed with a trading volume of 104.52 million, and was the third most active counter on June 7 with a market capitalisation of RM388.73 million.
It is probably Edelteq’s involvement in the semiconductor industry, which makes the company ‘a sexy thing’, although most semicon counters took a beating last year.
The company is also involved in the trading of operating supplies, spare parts and tools for IC assembly and testing.
Its customers are multinational integrated device manufacturers and outsourced semiconductor assembly and test companies in Malaysia and overseas, which include Singapore, Thailand, China and the US.
Nevertheless, investors should be cautious as the semiconductor industry has just entered its downcycle.
This is evident in its declining earnings in the past 6 months.
Its net profit fell to RM5.4 million in FY2022 from RM9 million in the previous year due to lower revenue from the supply and refurbishment segment of IC assembly and test and consumables.
The lower earnings were due to lower revenue from the supply and refurbishment segment of IC assembly and test and consumables.
In terms of revenue, Edelteq saw RM12.4 million in FY2019, then higher to RM16.7 million in FY2020, followed by RM24 million in FY2021 and RM24.4 million in FY2022.
The group noted that the local market brought in RM18.91 million or 77.6% of its total revenue in FY2022. Overseas markets accounted for the remaining 22.4%.
On a brighter note, Edelteq has a fixed dividend policy of paying out up to 20% of its annual net profit.
Hong Leong Investment Bank valued Edelteq at a fair value of 47 sen, based on a target price earnings of 16 times of FY2024 forecast of three sen.
It was in line with smaller cap peers’ average forward price earnings (P/E) but represents a 55% discount to ViTrox Corp Bhd of 36 times.
It remains to be seen if indeed Edelteq can bring more joy to early investors and to be able to sustain it.
#EDELTEQ
https://xifu.my/OpinionsComment.aspx?BID=B02086041PBAB0D0
Singapore Investment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Health after 652 days ago
-
-
-
-
-
-
-
-
-
-
-
-
-
Cory Diary : Dividend updates4 days ago
-
-
-
-
Grown-Up Goodbyes6 days ago
-
-
-
-
-
-
-
-
-
Top 10 Real Estate Agents in Japan1 week ago
-
-
-
-
-
-
May 2025 Updates1 week ago
-
Month of May 20251 week ago
-
-
Portfolio Summary for May 20251 week ago
-
Got gas?1 week ago
-
-
Portfolio (May 31, 2025)1 week ago
-
Portfolio (May 31, 2025)1 week ago
-
-
-
Elderly care in Taiwan2 weeks ago
-
Thakral - Gem life deal finally coming?2 weeks ago
-
-
-
-
-
-
-
-
-
-
Portfolio Update3 weeks ago
-
Clarity3 weeks ago
-
-
The Trump Tariffs3 weeks ago
-
Selling HRnet and Fiverr4 weeks ago
-
-
GE 2025: Aftermath5 weeks ago
-
-
-
-
-
-
-
-
-
FAQ on Quantitative Investing Part 22 months ago
-
-
-
-
Crossing the 300k Mark [in a volatile period]2 months ago
-
-
-
-
-
-
-
-
-
-
-
-
-
ETF vs Mutual Fund: Which is Better?4 months ago
-
-
-
-
-
-
-
Arigato Everyone! A Decade of Blogging!5 months ago
-
Top 10 Highlights of 20245 months ago
-
-
-
Union Square Residences7 months ago
-
-
-
STI ETF8 months ago
-
-
-
Unibet Casino Bonus Codes 20249 months ago
-
-
-
-
The Stigma against Early Retirement (FIRE)11 months ago
-
Monthly IBKR Update – June 202411 months ago
-
-
-
-
-
-
-
-
-
Feb 2024 Expenditure1 year ago
-
-
-
-
-
-
-
Monthly Summary of November 20231 year ago
-
Migration of website1 year ago
-
-
-
-
-
-
-
-
-
A New Light2 years ago
-
-
-
-
-
-
2022 Thoughts, Hello 2023!2 years ago
-
Series of Defaults for Maple Finance2 years ago
-
Takeaways from “Sea Change”2 years ago
-
Greed is Coming Back2 years ago
-
-
-
-
-
-
-
-
What is Overemployment2 years ago
-
Terra Hill Condo (former Flynn Park)3 years ago
-
Alibaba VS Tencent: The Battle Royale3 years ago
-
-
-
-
-
-
-
-
-
-
-
-
-