Good news for two SGX-listed companies

PHOTO: Good news for two SGX-listed companies

THE rise in popularity of Bluetooth audio speakers has helped Plastoform Holdings lift itself off the Singapore Exchange's (SGX's) dreaded watchlist of loss-making companies.

Plastoform, a Hong Kong-based audio speaker maker, said yesterday that it will exit the SGX watchlist from today. The list is designed to alert investors to underperforming companies.

The company's pleasing rejuvenation came as it reversed an HK$18 million (S$2.9 million) loss in the 2011 financial year to record a profit before tax of HK$3.6 million last year.

In another sign of the company's return to better financial health, Plastoform's average market capitalisation over 120 days was above $40 million. The bottom line and market capitalisation are two key factors determining whether a company is on the watchlist.

"Against all odds, Plastoform has emerged from the SGX watchlist through consistent and unyielding efforts to turn the business around," said executive chairman Michael Tse Kin Man.

Plastoform had pioneered the development of Bluetooth audio speakers from 2010, and now believes that such speakers are in the growth phase of their product cycle.

Plastoform's statement yesterday noted that demand for Bluetooth speakers is growing as the market continues to move away from docking systems, adopting Bluetooth technology in audio products along with the growth in Bluetooth- enabled smartphones and tablets.

The SGX watchlist is for mainboard-listed companies with three years of losses and whose market capitalisation over the previous 120 days has fallen below $40 million.

Watchlist companies get two years to return to the black or lift their market capitalisation above $40 million, or they may face delisting.

Another SGX-listed company with reason to cheer is Hafary Holdings, a supplier of tiles, wood flooring and sanitary ware which listed on the Catalist board in late 2009.

The company said earlier this month that it had received approval-in principle from the SGX to transfer its listing to the mainboard.

Before the transfer, Hafary's shareholders must give the go-ahead at an extraordinary general meeting on June 12, according to a statement on Monday giving more details on the development.

"Hafary is likely to be able to reach out to a wider investor base following the proposed transfer (to the mainboard)," said the statement.

"Given the company's current market position and relative stability, the proposed transfer to the SGX mainboard is appropriate and timely.

"Moreover, shareholders of the company will likely benefit from the company's listing on the SGX mainboard as the value of such listing is enhanced given the likely premium investors accord to companies listed on the SGX mainboard."

jonkwok@sph.com.sg


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