Thursday, January 10, 2013

CHINA AUTOMOBILE PARTS HOLDINGS LIMITED

























Bursa Malaysia start the 2013 first IPO with a China base company, China Automobile Parts Holdings Limited, with an indicative IPO price of RM0.68 per share.

Actually it is quite brave for CAPHL to choose to be listed in Malaysia as the previous listing for China base company in Bursa seem not performing well at their share price, although having a very attractive PE valuation.

Previously listed China base company, starting with most of the shoe maker like XingQuan, Xidelang, M-Sports and K-Star all are hardly trading near to their IPO price since listing, China Stationary Limited (CSL) did spike some interest from investor as it able trading higher than its IPO price for quite a period, which also see their share price going down below its IPO price.

China Ouhua Winery Holding Limited also seen some price movement after listing but currently trading merely at around RM0.12.

For CAPHL, which is business is totally different from the previous redchip, will it able to be valuated more fairly compare to their previous counter parts which only trading around PE 2 to 3 times. But I think to attract interest from the local investor, generous dividend policy should be adopt as minor shareholder will not see their value although they can post quarterly profit result consistently.

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