With the increased numbers of IPOs listing on Bursa Malaysia, there is no avoiding some bad apples in the market. Some notable examples such as Kucingko Bhd, Ocean Fresh Bhd and Sik Cheong Bhd, have all crashed significantly due to overhyped sentiment during the IPO stage. Another company, Sin-Kung Logistics Bhd, also delivered haphazard financial performance before their listing.

While Bursa Malaysia is supposed to be the one controlling the quality of IPOs, there is still no denying that they are a for-profit and regulator combined, and also a listed company which needs to take care of the interest of shareholders.

Nevertheless, that is not a topic for discussion today, the manufacturer of automotive engine parts, body parts, seats structure and absorber parts, yet disappointed investors with their financial results, despite the hype over a “sustainable demand from Tier-1 car brands such as Perodua and Proton”, is unable to deliver a somewhat satisfactory performance.

From FYE22 to FYE23, we had already seen the weakness in their financial performance, despite the blame can be laid on the lower consumer demand, which results in lower Total Industry Volume (TIV), the company had further disappointed investors with RM0.18 in PAT for Q2FY24 results.

In the quarterly report snapshot of the company, the management seems uninterested to explain the reason for the dip in revenue and profit. And no, there are no one-off expenses stemming from the IPO exercise in this quarter.

While the management is uninterested in explaining the reasons for the dip in results, they did, in fact, publish a 2-page long “Prospects” to explain to investors how bright their upcoming financial performance will be.

Heck, there are even two analysts who gave a Target Price (TP) of 28.5 sen to the company. How could innocent investors be free from such cases? In conclusion, investors really need to open their eyes wide in selecting which IPO to invest in. This is just another hype IPO doomed to fail.