Hafary Holdings was established in 1980 and is a supplier of tiles to customers in the Singapore Market. The Company is offering 32.5m New Shares at $0.20 each for a Catalist listing and market cap is $32.5m post listing.
Personally i don't like the sector in which the Company is in as there are many competitors, low barriers of entry and cyclical in nature. Revenue has remained stagnant from $29.9m in FY2008 to $30.8m in FY2009. The net profit has declined from $3.4m to $3.0m.
The historical EPS (assuming service agreement in place and based on enlarged share cap) will be 2.16 cents and that translate into a historical listing PE of 9.3x (not cheap considering the sector it is in).
Avoid.
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