Sunday, September 27, 2009

Stars makes impressive debut on SET

       Stars Microelectronics (SMT) expects revenue to grow 25% this year from 12.12 billion last year, according to chief executive Polsak Lertputipinyo.
       He said the growth would come from the strong pickup in global demand in the IT and electronics sector, with demand expected to remain strong through 2010.
       SMT, an electronics manufacturing service subcontractor, projects revenue growth of 10% to 15% in 2010, with the company expected to sign up 5-6 new companies for its microelectronic module assembly and integrated circuit services.
       SMT operates two main business lines -microelectronic module assembly (MMA) and integrated circuit (IC) packaging and testing. Its products include touchscreens for smart phones, harddisk control boards used in laptop computers and sensors for the automotive and medical industries.
       MMA accounts for 70% of revenue,with a profit margin of 30-40%. However,he expected that within the next two years, revenue contributions by the two business lines will be split evenly.
       Shares of SMT began trading yesterday on the SET as the fifth new listing on the main board this year.
       The stock opened at 5.25 baht and rose to a high of 5.95 before falling to close at 5.75 baht in trade worth 674 million baht, a 20% gain from its initial public offering price of 4.95 baht per share.
       Paiboon Nalinthrangkurn, chief executive of the financial adviser Tisco Securities, said investors are paying more attention to export-related companies due to the signs of global recovery.
       The sentiment is in contrast to that prevailing at the beginning of the year,when investors focused on domestic markets, he said.
       SMT reported total first-half revenues of 4.589 billion baht with net profits of 115 million baht.

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