KUALA LUMPUR, March 8 — QES Group Bhd, which made its debut on Bursa Malaysia's ACE Market today, saw its shares up 5.5 sen to 24.5 sen at the opening bell with 6,000 shares traded.
As at 9.40am, QES Group emerged as the most actively traded stock with its share price at 22 sen, a premium of three sen over its offer price of 19 sen with 81.16 million shares transacted.
Kenanga Research expects the equipment distributor and manufacturer to register a two-year core net profit compound annual growth rate (CAGR) of 15 per cent, in tandem with the positive outlook in the test and measurement market.
Going forward, the global and Malaysia’s test and measurement markets are widely expected to grow at a five-year CAGR of 5.7 per cent, stemming from demand in telecommunication, semiconductor and automotive, which were all sectors that QES has exposure in, the research house said in a note.
“We believe QES Group’ growth will continue to outpace the positive industry trend, which should support our conservative two-year revenue CAGR assumption of 13 per cent.
“We derive a fair value of 26 sen, which warrants a 37 per cent upside from its initial public offering price,” it added. — Bernama
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