Friday, December 17, 2010

Sozo opens at 79.5 sen amid cautious market

KUALA LUMPUR: Shares of Sozo Global Ltd opened at 79.5 sen on Friday, Dec 17, which was a discount of 0.5 sen from its offer price of 80 sen, when it made its debut on the Main Market.

Sozo, a China-based company, manufactures ready-to-serve food, saw 2.34 million shares done.

The FBM KLCI opened down 0.25 of a point to 1,497.27. Turnover was 14.06 million shares valued at RM8.93 million. Gainers led decliners 65 to 19 while 91 stocks were unchanged.

However, analysts viewed there was more upside for the company with RHB Research Institute according a fair value of 95 sen.

RHB Research said it derived a fair value of 95 sen a share after applying a FY11 target of 4.0 times PER, which is a 10% discount to the weighted average FY11 target PER of the three listed China based companies on Bursa Malaysia.

'We believe it is more relevant to benchmark Sozo against its China listed peers in the KLSE than the Malaysian peers given the large discount usually applied to China listings in Malaysia, irrespective of its business model,' it said.


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