Avi-Tech Electronics

[BlueKelah]

I checked the Q2 result, under the disposed business section, the profit has an asterisk

* Includes sales and recovery of impaired assets

I don't think it is pure operational profit per se.

Any accountant, pls share professional interpretation. Thanks

Doesn't really matter, EPS without the discontinued is still .56 which more than enough to sustain dividend assuming continued profit next half.

Question is when a "bonus" could be paid out from the net cash at 70% level now to market cap. Seems like management not going to reward opmi by locking it away in FD >3months...

Still if share price does dip can consider accumulate some now that business is profitable and there is already a 25% MOS to NAV.

[MOV]

A closer look at CIMB's research report on 20 Jan shows that Avi-Tech's top 5 customers are 1) Infineon 2) Linear Technology 3) Cavium 4) Texas Instrument 5) On Semiconductors.

Infineon's latest company presentation shows that it is one of the market leaders (No.2) in automotive semiconductors.
https://www.infineon.com/cms/en/about-infineon/company/

Linear Technology's 2014 annual report shows the automotive sector is one of its fastest growing segments and accounts for 19% of total revenue for 2013 results, up from 8% five years ago.
http://www.linear.com/company/investor/financials.php

The above is consistent with CEO's comment in Q2 results: "“We remain optimistic of our continued improving performance, provided that the semiconductor industry continues its uptrend with resultant increase in demand for electronics components in the automotive sector.".

[BlueKelah]

Free lunch next month to conform with the new SGX listing rules.

Date and time of Extraordinary General Meeting : 12 May 2015 at 12.00 p.m.
Place of Extraordinary General Meeting : 19A Serangoon North Avenue 5
6th floor Singapore 554859

Avi-tech EGM

- v - ;D

[secretinvestors]

Looks like things are turning in well for Avi-Tech Electronics. Management is also considering whether to distribute dividends for the 4th quarter as well as seeking shareholders' approval to obtain a share buyback mandate to facilitate 'the return of surplus cash to shareholders in an expedient and cost-efficient manner.' More details as follows:

http://infopub.sgx.com/Apps?A=COW_CorpAn...80c12a3245

[MOV]

Avi-tech continues to make good recovery in its core business while improving operating margins significantly. With NAV of 12.47cts and cash per share of 8.1cts, it is well-positioned to reward shareholders and on track towards watch-list exit soon.

Steady!

[sgpunter]

Awaiting the second round of dividend payout coming with 4Q result.

Assuming another $0.003, total dividend for the year will be $0.006 and at current price of $0.097, yield will be a very yummy 6.2%.

I am also heartened by the optimistic statement provided by Management: -

"The Group remains optimistic of the continuing improved performance for all the business segments, especially with the indication of higher demand for the Burn-in Services business segment, which may further contribute to revenue growth."

Bought some lots at $0.065 and turning out to be one of my best investments yet.

Wonder if there are any plans surrounding the discontinued operations which has been turning in a pretty decent profit!

[BlueKelah]

think there has been a minor error in the cash and cash equivalents in this quarterly cash flow report. The placement of 17+ million in fixed deposits from last quarter has not been recorded into the Note A though it has been correctly listed in the other asset section.

In any case, debt has decreased and with a 3rd quarter of profit at around almost 0.4c per quarter, can be quite confident of the turnaround so long as the larger industry is stable.

IMHO share buyback will be a more likely scenario compared with a bonus dividend given the action of locking up 17+m in FD.

Just like memtech was at 10cents, avi-tech at 10 cents is looking pretty sweet and undervalued as well.

Time for analyst to come in with their wild projections of another possible InnoValues.

-v-

Congrats SGpunter for catching this turnaround so early pretty sure it will turn out to be at least a double bagger for you. $1.30 soon.

[sgpunter]

Thanks BlueKelah.

I like it that you change your profile pics on and off do keep it up

[Tiggerbee]

Net cash value per share (including receivables) is over 7.6c s share. Office asset worth about 3.1c a share. It's like the business is free at current stock price, or free dividend generating company.

(Vested)

[BlueKelah]

First "turnaround" dividend paid yesterday.

Valuation after still looks cheap at the moment. More dividend to come soon.

-v-