KUALA LUMPUR (Mar 8): Shares of QES Group Bhd gained as much as 15.79% this morning as it made its debut on the ACE Market of Bursa Malaysia today, emerging as the top active stock so far.
At 11:30am, QES was trading at 22 sen, up 3 sen or 15.79% from its issue price of 19 sen, after 104,945,000 shares traded.
Kenanga Investment Bank Bhd research analyst Desmond Chong wrote in his note today that the group is expected to register a 2-year core net profit (CNP) compound annual growth rate (CAGR) of 15%, underpinned by its strategic exposure in high growth segments and its wide customers and installed base for the distribution division, as well as incremental sales with new products from higher-margin in the manufacturing division.
"QES has registered a 3-year revenue/CNP CAGR of 22%/47%, which have significantly outperformed the mid-single digit growth of global/Malaysia’s test and measurement market.
"These were all on the back of its strategic exposure in high-growth sectors and resilient ASEAN market (which experienced higher growth in recent years)," Chong said.
QES will have a strong support for growth going forward, he said, as the group plans to utilise some proceeds from the IPO to develop products in the manufacturing division and diversify its portfolio by penetrating into other market segments for its distribution division.
Kenanga derived a fair value for the stock at 26 sen, which is a 37% upside from the IPO price.