KUALA LUMPUR: Northeast Group Bhd jumped as high as 9.0 per cent from its initial public offering (IPO) price of 50 sen on its debut on the ACE Market of Bursa Malaysia.
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The share price opened 3 sen or 6.0 per cent higher premium to its IPO price. At 10.41am, the stock was trading at 53 sen with its market capitalisation at RM392 million.
Its trading volume rose to 123 million, making it the most active stock.
UOB Kay Hian Research has initiated coverage on Northeast Group Bhd with a “buy” rating with a target price of 88 sen, a 76 per cent upside from its initial public offering (IPO) of 50 sen.
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The research firm came out with the target price based on price-to-earnings (PE) ratio of 28 times for the financial year 2025 which is which is at -1SD (standard deviation) below five-year average forward PE of semiconductor production equipment.
It said the precision engineering components manufacturer is expected to post a revenue and core net profit growth of 23 per cent and 39 per cent, respectively, in the FY25.
The research firm came out with the target price based on price-to-earnings (PE) ratio of 28 times for the financial year 2025 which is which is at -1SD (standard deviation) below five-year average forward PE of semiconductor production equipment.
It said the precision engineering components manufacturer is expected to post a revenue and core net profit growth of 23 per cent and 39 per cent, respectively, in the FY25.
-NewStraitsTime