Kori

Kori: Counter rose 6.6% yesterday, its highest 1-day rise since its IPO in Dec 2012 despite the CEO paring down 35% of his stake through a married deal to the current stakeholding of 20.6%. In addition, Kori announced the utilisation of $1.8m from IPO proceeds for the expansion of its structural steel works and tunnelling services in Singapore. The net proceeds of $4.4m received from its IPO in Dec 12 is intended for use to expand its Singapore operations ($3m) and to grow its tunnelling services in overseas markets ($0.1m). In addition, the group intends to spend $1m to purchase a land in Iskandar for a storage yard in 2013 and the remaining for general working capital ($0.3m). Kori trades at a relatively cheaper valuation of 5.1x trailing P/E, compared to structural steelwork peers TTJ that trades at 6x trailing and Yongnam at 8x forward earnings. Excluding cash, Kori trades at 3.3x trailing P/E.