Stocks In Focus MY (Superlon, Jobstreet, City-Link Express) – 05/01/15
SUPERLN (7235), JOBST (0058),
Superlon Dividend Payout Puts It On Investors’ Radar
Superlon Holdings’ generous dividend payout has put the manufacturer of insulation products on investors’ radar.
The dividends paid out had been considered after looking at its financial position, earnings, and future plans. Superlon has a market capitalisation of RM57.6 million and its core business is divided into two segments ; insulation products division and trading division.
Superlon has witnessed moderate paced expansion of the global economic activity, and plans to invest RM12 million in the next two years to expand its production capacity and capabilities.
Significance: The interim dividend of two sen per share declared on 18 October for its year ending 30 April, 2015, which was followed by a special dividend of four sen per share effectively reflects Superlon’s dividend yield at 5.52 percent.
CIMB Equities Research Lowers Jobstreet Rating To Reduce
The recent surge in share price has been deemed unsustainable by CIMB Equities Research and the research house has lowered its rating on Jobstreet from Hold to Reduce.
CIMB Equities Research mentioned that it thinks Jobstreet would still need to seek funding to grow its remaining assets or invest in a new core business despite its net cash balance of over RM44 million.
It was opined that Jobstreet could grow its remaining assets by raising its associate stake in the Taiwan-listed employment service provider, 104 corp, but may need to raise more than RM460 million to buy the remaining stake in 104 corp.
Significance: The research house has cut its rating on Jobstreet to Reduce from Hold, with an unchanged target price still based on 16.8 times Current Year P/E, a discount to the IT services sector P/E of 24 times.
Listing Plan In The Next Three Years; City-Link Express
City-Link Express is considering a main market listing on Bursa Malaysia in the next three years. It will be able to tap into the equity market to raise funds, and also further strengthen confidence among its investors, stakeholders and customers.
The company is currently talking to bankers and have shortlisted a few for the initial public offering, but quipped that it is still preliminary to disclose further.
The company commands a 13 percent market share of the domestic courier service in Malaysia. Its RM100 million integrated hub in Bandar Saujana Putra, approximately 12 times bigger than its existing facility at the Glenmarie Industrial Park, is expected to boost its revenue by at least 20 percent.
Significance: The company has been growing organically for the past 25 years and, if listed, it would use the proceeds from the listing to invest in technology and infrastructure to better serve its customers.
http://www.sharesinv.com
SUPERLN (7235), JOBST (0058),
Superlon Dividend Payout Puts It On Investors’ Radar
Superlon Holdings’ generous dividend payout has put the manufacturer of insulation products on investors’ radar.
The dividends paid out had been considered after looking at its financial position, earnings, and future plans. Superlon has a market capitalisation of RM57.6 million and its core business is divided into two segments ; insulation products division and trading division.
Superlon has witnessed moderate paced expansion of the global economic activity, and plans to invest RM12 million in the next two years to expand its production capacity and capabilities.
Significance: The interim dividend of two sen per share declared on 18 October for its year ending 30 April, 2015, which was followed by a special dividend of four sen per share effectively reflects Superlon’s dividend yield at 5.52 percent.
CIMB Equities Research Lowers Jobstreet Rating To Reduce
The recent surge in share price has been deemed unsustainable by CIMB Equities Research and the research house has lowered its rating on Jobstreet from Hold to Reduce.
CIMB Equities Research mentioned that it thinks Jobstreet would still need to seek funding to grow its remaining assets or invest in a new core business despite its net cash balance of over RM44 million.
It was opined that Jobstreet could grow its remaining assets by raising its associate stake in the Taiwan-listed employment service provider, 104 corp, but may need to raise more than RM460 million to buy the remaining stake in 104 corp.
Significance: The research house has cut its rating on Jobstreet to Reduce from Hold, with an unchanged target price still based on 16.8 times Current Year P/E, a discount to the IT services sector P/E of 24 times.
Listing Plan In The Next Three Years; City-Link Express
City-Link Express is considering a main market listing on Bursa Malaysia in the next three years. It will be able to tap into the equity market to raise funds, and also further strengthen confidence among its investors, stakeholders and customers.
The company is currently talking to bankers and have shortlisted a few for the initial public offering, but quipped that it is still preliminary to disclose further.
The company commands a 13 percent market share of the domestic courier service in Malaysia. Its RM100 million integrated hub in Bandar Saujana Putra, approximately 12 times bigger than its existing facility at the Glenmarie Industrial Park, is expected to boost its revenue by at least 20 percent.
Significance: The company has been growing organically for the past 25 years and, if listed, it would use the proceeds from the listing to invest in technology and infrastructure to better serve its customers.
http://www.sharesinv.com
