TECHCOMP HOLDINGS, a unique business listed on the Singapore Exchange since 2004, dual-listed yesterday on the stock exchange of Hong Kong.
The HK-based distributor and manufacturer of scientific instruments saw its shares trading between HKD2.43 and HKD2.48, closing at HKD2.43 with 371,000 shares changing hands.
In Singapore, the stock closed unchanged from the previous day at 40 Singapore cents or HKD 2.38.
Techcomp hopes to achieve a higher valuation for its shareholders through the dual listing. Its peers are trading at trailing PERs of 13-27x on various stock exchanges, while it currently trades at FY10 PER of 6.9x.
Techcomp's 1H revenue grew 18.8% to US$60.8 million, making it a record six months, thanks mainly to the growth of its manufacturing business in Europe and China.
Overall gross profit margin rose 1.1 percentage points to 30.5%. Net profit, however, came in at US$604,000, down 59% because of a one-off US$758,000 expense for its dual-listing exercise.
Investors are familiar with the fact that Techcomp's 2H earnings tend to far outweigh its 1H's. In 2010, for example, the second half accounted for US$9.0 million in net profit while the first half only US$1.5 million.
Techcomp's historical dividend yield is 2.5% based on the 1-Singapore cent a share payout for FY2010.
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Comments
This is 7x the average daily trading