SGX places nine companies on watchlist

The Singapore Exchange (SGX) has added a bumper crop of nine loss-making companies to its watchlist with effect from Wednesday.

The companies are: ASJ Holdings, Cacola Furniture International, Dapai International Holdings Co, Eucon Holding, Europtronic Group, Huan Hsin Holdings, Nippecraft, Ouhua Energy Holdings and W Corporation.

Five of the companies make or distribute electronics products. ASJ Holdings makes resistors, Eucon Holding makes printed circuit boards, Europtronic Group makes electronics components, Huan Hsin Holdings is a contract manufacturer of telecom and electronic products, and W Corporation distributes LED products.

Three companies are in the consumer business: Cacola Furniture International, backpack maker Dapai International Holdings and paper products maker Nippecraft.

The last company, Ouhua Energy, imports, processes and sells liquefied petroleum gas.

The addition of these nine companies brings the total number of companies on the SGX watchlist to 32.

The watchlist comprises mainboard-listed companies that have incurred three consecutive years of pre-tax losses and whose market capitalisation over the past 120 days has fallen below $40 million.

They will have two years to return to profitability or lift their market capitalisation above $40 million. Otherwise, they face being delisted.