KUALA LUMPUR: Boilermech Holdings Bhd made a strong debut on Bursa Malaysia on Thursday, May 5, opening at 82.5 sen.
According to stock market data, it was up 49.5 sen to 82.5 sen at the start of trade. Its offer price was 33 sen.
The company designs and manufactures biomass boilers. OSK Research has fair value of 45 sen.
Meanwhile, RHB Research said Boilermech's closest listed comparable for Boilermech is CB Industrial Products, as the latter supplies various machinery for palm oil mills including boilers.
'We thus derived a fair value of 40 sen a share, after applying a CY11 target 6.5x PER, which is about 10% discount to CBIP's current valuation of 7-7.1x CY11 PER.
'We believe the discount is fair given Boilermech's smaller market capitalisation and the fact that it does not provide a wide range of products for palm oil millers unlike CBIP,' RHB Research said.
According to stock market data, it was up 49.5 sen to 82.5 sen at the start of trade. Its offer price was 33 sen.
The company designs and manufactures biomass boilers. OSK Research has fair value of 45 sen.
Meanwhile, RHB Research said Boilermech's closest listed comparable for Boilermech is CB Industrial Products, as the latter supplies various machinery for palm oil mills including boilers.
'We thus derived a fair value of 40 sen a share, after applying a CY11 target 6.5x PER, which is about 10% discount to CBIP's current valuation of 7-7.1x CY11 PER.
'We believe the discount is fair given Boilermech's smaller market capitalisation and the fact that it does not provide a wide range of products for palm oil millers unlike CBIP,' RHB Research said.
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