Winsun Technology Reporting Losses Less Than A Year After Being Listed!

Winsun Technology was listed early this year on January 22nd. Here are couple of articles on it.

Posted on Business Times

• MIMB bullish on WinSun's prospects
  
  The investment bank is projecting a fair value of RM0.34 ex-rights on the company, implying an upside of 19 per cent on the ex-rights price of RM0.283
  Published: 2008/01/07
  
  CHANGES in China's economic environment will affect Mesdaq-bound WinSun Technologies Bhd's profitability, given that the bulk of its operations are carried out in China.
  
  "With the bulk of WinSun's operations being conducted in China, the double-digit gross domestic product growth powered by foreign direct investments in China as well as the Chinese government's spending on infrastructure projects will have a positive impact on the profitability of WinSun," MIMB Investment Bank Bhd said in a report on Friday.
  
  However, there are several key risks that WinSun has to face, namely those related to Chinese operations; protection of intellectual property rights; dependence on key management and technical personnel, this being a knowledge-based industry; dependence on relatively narrowly-based products, services and markets; and lack of long-term contracts.
  
  Due to the risk in intellectual property rights, WinSun plans to transfer part of its research and development team and activities from China to Malaysia this year.
  
  The company also plans to expand its services into Vietnam by next year.
  
  "Since Vietnam is one of the fastest growing economies in the region and is at a developing stage, the country will require the services of WinSun's technical and engineering knowledge in designing, installing, maintenance as well as support and training," MIMB said.
  
  Bullish with the prospects of WinSun, MIMB is projecting a fair value of RM0.34 ex-rights on the company that implies an upside of 19 per cent on the ex-rights price of RM0.283.
  
  Its RM0.34 fair value on WinSun is based on 1.28x price to sales ratio industry average, using expected financial year-end December 2008 sales.
  
  "The potential upside of WinSun is therefore 19 per cent on the theoretical ex-rights price of RM0.283 upon completion of the 2-for-1 bonus issue, which successful initial public offering subscribers will be entitled to," MIMB said.
  
  WinSun is an investment holding company and conducts research and development, while its subsidiaries are involved in the provision and design of industrial automation systems.
  
  The firm specialises in the research and development of intelligent industrial control management system, which includes design of automated drive control systems.
  
  The company is also involved in intelligent field instrumentation, industrial engineering design, customised software programming, engineering and production, installation and commissioning as well as comprehensive maintenance, support and training.
  
  Its clientele covers 12 different industries, with its revenue mainly derived from the metal (21 per cent), machinery (19 per cent), chemical (16 per cent) and semiconductor (12 per cent) segments.
  
  WinSun is slated for listing on January 22.

And the following article was posted after Winsun's listing.

• WinSun eyes Vietnam market
  
  The company plans to set up a representative office in Vietnam next year, but things are in the preliminary stage now, says its managing director
  
  Published: 2008/01/23
  
  WINSUN Technologies Bhd, which provides intelligent industrial control management systems with all its operations based in China, plans to expand its market to Vietnam next year.
  
  "We are eyeing the market in Vietnam to set up a representative office there in 2009. However, things are in the preliminary stage now," managing director/chief executive officer, Choong Siew Meng, told a media briefing after the listing of the company's shares on Mesdaq Market in Kuala Lumpur on Tuesday.
  
  The shares opened at 34 sen, up 5.7 sen from its theoretical ex-bonus price of 28.3 sen. It closed the morning session at 36.5 sen after hitting a high of 48 sen earlier.
  
  Under its listing exercise, WinSun made a public issue of 30 million shares, of which 25 million were for private placement, two million for directors and employees, and the rest for the public.
  
  It also implemented a 2-for-1 bonus issue of 200 million shares after the public issue. - Bernama

Winsun announced it earnings last night.

Quarterly rpt on consolidated results for the financial period ended 30/9/2008

It LOSS some 1.76 million!

Less than a year after listing on the Messdaq, this company has already started reported losses! Another high quality listing on Messdaq?

Stock last traded 6 sen.