Boilermech 1

Kenanga Research

KUALA LUMPUR, April 20 (Bernama) -- Boilermech Holdings Bhd which is enroute to an ACE Market listing has bright prospects, Kenanga Research says.

"We estimate a net profit of RM20.7 million and earnings per share of 8.0 sen for the 2012 financial year.

"We arrive at a target price of 48 sen and with potential upside of 45 per cent, we recommend investors to subscribe this initial public offering (IPO)," the research house in its IPO Note Wednesday.

Boilermech is principally engaged in the design, manufacture, installation, commissioning of biomass boilers as well as repairs and refurbishment services.

Its IPO price is 33 sen and the company is estimated to have a market capialisation of RM85.14 million upon listing.