Despite the COVID-19 global pandemic continuing to pose challenges to businesses both in Singapore and across the world, there were still some companies that pursued an initial public offering (IPO) on the Singapore Exchange (SGX) – with 2 companies listing on the SGX Mainboard and one company listing on the Catalist.
Among the three companies that had their IPOs on SGX in 1H2021, two of them were from the manufacturing sector. This is in line with the Ministry of Trade and Industry’s (MTI) 10-year “Manufacturing 2030” plan to attract companies at the frontier of manufacturing and promotion of Industry 4.0 Adoption.
In this week’s edition of 4 Stocks This Week, we look at the IPOs in 1H2021 on the SGX and find out how these stocks have performed since being listed.
Aztech Global (SGX: 8AZ)
Aztech Global (SGX: 8AZ) is a key technology enabler for the connected world tomorrow with key products in IoT devices, data-communications, and LED lighting products. Aztech Global was listed on the SGX mainboard on 12 March 2021, offering 68.12 million shares at S$1.28, with invitation approximately 16.5 times subscribed.
The Group aims to further leverage on positive growth prospects of the IoT and data-communication market with Original Design Manufacturer (ODM) and Joint Development Manufacturer (JDM) solutions.
In its 1H2021 result announcement, the company reported an increase of 92.1% in its EBITDA to $39.0 million. Net profit after taxation more than doubled from $13.0 million to $29.4 million with net profit margin improving to 11.8% for 1H 2021. Earnings per share for 1H 2021 are at 4.12 cents.
As of 27 August 2021, Aztech’s shares are trading at $1.12. This gives it a current price-to-earnings (PE) ratio of about 13.6.
Econ Healthcare(ASIA) (SGX: EHG)
Econ Healthcare (SGX: EHG) grew from its humble beginning in 1987 with just 17 beds at Telok Kurau to the largest private nursing home operator in Singapore and Malaysia with a presence in China. The Group was listed on 19 April 2021 on the SGX Catalist Board, with an offering price of S$0.28 per share. The IPO drew strong investor demand with 50 million offering shares facing an overall subscription of 4.1 times.
Econ Healthcare opened its first nursing home in Chongqing, China, holding a 60% stake in the joint venture. The Group aims to use this to not just facilitate future expansion in China, but also break the traditional norms of nursing homes by leveraging on technology and big data.
In its FY2021 result announcement, the company reported an increase of 21.2% in its EBITDA to $14.5 million. Normalised operating profit increased by 9.1% from $5.8 million to $6.3 million with normalised operating profit margin improving to 16.7% for FY2021.* Earnings per share for FY2021 is at 2.72 cents.
As of 27 August 2021, Econ Healthcare’s shares are trading at $0.315. This gives it a current price-to-earnings (PE) ratio of about 11.6.
*normalised item includes Exceptional Grant: JSS, FWL, Rent concession, property tax rebate, staff accommodation; and Exceptional expenses: IPO & staff accommodation expense, net amounted to S$1.8 million approximately
OTS HOLDINGS (SGX: OTS)
Established in 1993, OTS Holdings Limited (OTS) is a brand builder and food manufacturing group in the consumer industry with a strong niche in ready-to-eat and ready-to-cook meat products with key markets in Singapore and Malaysia. Some products that you could have seen in the supermarkets include their Golden Bridge Luncheon Meat under their non-halal selection and El-Dina Meat Loaf under their halal selection.
On its first day of trading on 17 June 2021, OTS Holdings closed at $0.29, 26.1% higher than the IPO invitation price of S$0.23 per share. The IPO of 41 million had an overall subscription rate of 8.4 times.
To cater to a growing demand for plant-based food products, the Group is developing its own plant-based food products, such as plant-based canned luncheon meat, which intends to launch by early 2022.
In its 1H2021 result announcement, the company reported an increase of 123% in its EBITDA to $4.32 million. Net profit after taxation more than tripled to close to $3 million with net profit margin improving to 7.2% for 1H 2021. Post-invitation earnings per share for 1H 2021 are at 1.34 cents.
As of 27 August 2021, OTS Holdings’ shares are trading at $0.3. This gives it a current price-to-earnings (PE) ratio of about 11.2.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.