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11-04-2016, 10:03 PM
CIMB released a non-rated research note previously and DBS today also issued its Equity Explorer research report, with a TP of S$0.99.
key highlights:
1) machinery & automotive and consumer segments to drive growth
2) steady growth (8yr CAGR of 13% on pretax profit), strong net cash position (S$22m)
3) steep discount in valuation compared to Innovalues (trading at 6x FY16 PE) vs industry's average of 13x, Innovalues' 12x
4) ability to generate strong positive operating cash flow over the last 3-4 years (1HFY16: S$8.8m vs FY15 S$12.8m)
5) EV/EBITDA of just 2.3 (PE buy-out target)
seems to be gaining traction among the sell and buy-side analysts.
key highlights:
1) machinery & automotive and consumer segments to drive growth
2) steady growth (8yr CAGR of 13% on pretax profit), strong net cash position (S$22m)
3) steep discount in valuation compared to Innovalues (trading at 6x FY16 PE) vs industry's average of 13x, Innovalues' 12x
4) ability to generate strong positive operating cash flow over the last 3-4 years (1HFY16: S$8.8m vs FY15 S$12.8m)
5) EV/EBITDA of just 2.3 (PE buy-out target)
seems to be gaining traction among the sell and buy-side analysts.