Tambun Indah Land is a property developer based in Penang and it was listed on Main Market on 18th January 2011 at an IPO price of RM0.70. On listing day, share price hits RM0.865 but since then the price dwindling down to below its IPO price. On 23rd March 2011, share price close at RM0.675.
Fair Value/Target Price for Tambun by two research houses, RHB Research & Jupiter are at RM0.81 and RM0.95 respectively. However, the forecast may be not so accurate for a newly listed stock.
One interesting fact about Tambun is, they expected to pay high dividend to the shareholders. From IPO prospectus, Tambun have a dividend payout ratio policy in between 40% to 60% of the net profit.
During the 4th Economic Transformation Programme (ETP) update recely, the PM unveiled a further 9 Entry Point Projects (EPP)s worth over RM2bn, bringing the total to date at 60 projects under 46 EPPs. To date, the projects will produce RM95bn in investments and increase GNI by RM137bn.
With the ETP and theupcoming General Election as its twin catalysts, OSK remain Overweight on the Malaysian market with our 1680 pts year end target intact. Favourite sectors remain Banks, Oil & Gas, Property and Construction.
The 4th EPPs announced include:
Despite relatively strong results from a number of Blue Chips in February, the market still retreated and ended up in the red so far in 2011. Selling was largely attributed to concerns arising from political unrest in the Middle East but the risk is limited if this does not spread to Saudi Arabia.
With the 4Q2010 earnings results season over, OSK unveil new 2011 KLCI year-end target of 1680 pts, which is the average of the 2011 KLCI fair value (1648 pts) and that for 2012 of 1710 pts.
OSK continue to advocate Buying into Weakness for sectors such as Banking and to trade in O&G, Construction and Property plays. OSK also adding a slightly defensive flavor to our Top Buys for March. While the market remains volatile for now, OSK see an election driven rally towards year-end.
The table below are the target price for March 2011 top picks.
2010 proved to be a decent year for OSK’s Small Cap Jewels although their performance was eclipsed by the liquidity-infused rally, which benefited the bigger caps, particularly from 2H2010.
Of the 50 stocks profiled in handbook, half posted absolute returns in excess of 20%, with 49% outperforming the FBM Small Cap and FBM KLCI indices.
While the smaller caps are expected to bask in the glory their larger cap peers in 2011, investors should not ignore names with good longer term potential that are trading at attractive valuations.
OSK like small caps in the construction, property, oil & gas and consumer sectors as beneficiaries of the ETP, elections and earnings themes.
The table below are the 2010 performance of OSK Top 50 Small Jewels and performance since OSK’s Small Cap Jewels report released in April 2010.
In 2010, there is 29 new Initial Public Offering (IPO) compare to 14 in 2009. Out of 29 listings, 23 companies were listed on the Main Board of Bursa Malaysia, while the rest were on the ACE Market.
How do they performed?
Based on data compiled from Bursa Malaysia, 17 out of 29 stocks closed higher than their offer price on the listing date. However, on 30th December 2010, the last trading day, only 12 closed higher than offer price. Seem like IPO stocks performance in 2010 is not very encouraging.
In January 2011, 3 more IPOs will be listed in Bursa Malaysia. They are K. Seng Seng Corporation, Benalec Holdings and Tambun Indah Land. With 2010 IPO performance data, are you going to subscribe to 2011 IPO?
The table below are the summary of 2010 IPO performance.