KUALA LUMPUR, Dec 5 — Rakuten Trade Research has issued a “buy” call with a target price of 95 sen on Techbond Group Bhd on the back the company’s growing business in the Asean region and strong products portfolio.
Techbond, a manufacturer of industrial adhesives and sealants, was listed today on the Main Market of Bursa Malaysia at 80.5 sen, a premium of 14.5 sen on the 66 sen issue price.
“The company has a 22-year track record with a strong presence in Asean. To date, Techbond owns eight brand names under its products portfolio and it is supported by strong in-house research and development capabilities, including 368 types of internally developed products,” Rakuten said in a research note today.
Rakuten Trade said the company’s capabilities in products customisation gave them an edge over its competitors and its top customers had been with them from seven to 14 years.
“The bulk of Techbond’s sales are from Vietnam, driven by the country’s rising presence as a wood processing hub,” it said.
Rakuten said the company’s balance sheet remained sound with zero borrowing and net cash of RM36.7 million post listing.
At lunch break today, shares of Techbond rose to 21.5 sen to 87.5 sen with 68.12 million shares traded. — Bernama
