Kori

Kori: Highlighted previously on the cheap valuations for the structural steel player. The group is also backed by a solid balance sheet with net cash of $14.2m versus net gearing of 0.4x for TTJ and 0.1x for Yongnam. We have been noticing increasing trading volumes since 12 Jul when CEO Nobuaki Kori pared down one-third of his stakeholding to 20.6% from 31.6% via a married deal of 10.9m shares to an undisclosed buyer. No disclosure had been made by the company on the details of the buyer of the 11% stake yet. Kori has been a fairly illiquid counter with a small free float of only 38m shares but could see improved trading activity with a bigger float now out in the market. With structural steel plays Yongnam and TTJ gaining favour among investors on the back of strong orders and robust construction demand in Singapore, interest could spill over to Kori. To this end, the group has utilized $1.8m of its IPO proceeds for the expansion of its structural steel works and tunnelling services in Singapore.