Thursday, 6 December 2007

Soon Lian Holdings Limited



Soon Lian Holdings is a specialist supplier of over 1,200 different aluminium alloy products. The products are mainly sold to the marine and precision engineering industries.

Public offer - 1m shares at $0.21
Placement offer - 26m shares at $0.21.
Manager: Philip Capital

FY07:

1H revenue : S$19.8m
1H net profit: S$2.7m

FY06:

Revenue: S$31m
Net profit: S$3.3m

Assume FY2007 revenue doubled to S$40m and net profit to S$5.4m, the EPS for 2007 will be around Singapore 5 cents based on post IPO 108m shares. The market cap based on IPO price will be S$22.6m. The Company will be listed on SESDAQ and is a ultra small cap company. The listing PE is around 4.2x. Downside is limited due to the cheap valuation.

I will give it a 1 Chilli rating and give it a miss.

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