􀁺 We understand that demand for the new shares were “overwhelming” both from retail as well as institutional investors.
􀁺 We were surprised to learn that institutional interest was also strong given that the company‘s market cap is only S$101.75mln currently, after yesterday’s 11% gain. In general we understand that institutional investors will only become more serious
when the company’s market cap hits S$250mln or more.
􀁺 With Sino Grandness, it could be that interests have been raised from “The Edge” recent detailed coverage of the company’s business and its robust growth prospects. We also understand that management has been conducting a series of phone and face to face interviews with several foreign funds.
􀁺 Since the company hired its internal investor relation manager Mr Parry Ng to help promote and increase investor awareness of the company in the middle
of this year, the stock has done very well, having risen from the 20 cents level to 41.5 cents currently.
􀁺 While its post listing and all time high of 48 cents since its IPO in late 2009 (at 30 cents) may post some near-term “technical” resistance, its PE of 4-5x against 20-25% growth suggests that it could well surpass this level over the medium-term.
􀁺 We maintain our BUY recommendation. (The company will be doing a voluntary quarterly
reporting for 3Q ended Sept ’10 and will also be hosting a luncheon presentation in Lim and Tan securities on 21 Oct ’10 (Thursday).
