BCT Technology

Below is the reseach report from HDBS:

BCT Technology: Successful 12.2m shares private placement (Buy; MYR1.07; BCTT MK)
BCTT announced last Friday that it had successfully placed out 12.2m new shares at RM1.00 per share, representing 5.6% discount to its 5-day VWAP (volume-weighted average price) of RM1.06.
This is 6.5% discount to its closing price of RM1.07 on Friday. Funds raised from this placement would be used for working capital that would potentially lead to earnings upgrade. Additionally, we expect news flow from BCTT with respect to its growth strategies – organically or via M&A.
As such, we maintain our Buy call on BCTT with a price target of RM1.70, which is based on 8x FY08 EPS.