Tuesday, December 28, 2010

Pantech Group Holding Bhd 5125


Pantech Group Holding Bhd (Pantech) principally supplies steel pipes, fittings and flow control products (PFF) to a broad range of industries - major in oil & gas sector.

Pantech can be regarded as a major player in the PFF industry which has only 14 direct competitors in the country. Pantech claims to have captured some 40% of the market and is the only listed player in the industry.

Previously Pantech was facing a selling pressure due to the bonus, ICULS and warrants issues.
Before those issues, Pantech outstanding shares were 386 million.
After issued, Pantech's outstanding shares are 463.3 million with another 748.4 million ICULS and 74.8 million warrants.

748.4 million ICULS can be converted to 124.7 million Pantech mother share with the ratio 6 to 1
74.8 million warrants exercise price is RM 0.60

If all the ICULS and warrants are converted to mother share, then total Pantech outstanding shares will be 662.8 million

Last 4 quarters earning was 40 million, which gives EPS 6 cents.
Current share price RM 0.60, which equal to PE 10

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.