KGI Securities’ research team has maintained their “buy” call and target price of $1.37 on Grand Venture Technology, following the manufacturer’s recent acquisitions of Formach Asia and J-Dragon (Suzhou) announced last December.
The brokerage says these acquisitions will help augment GVT’s in China and Malaysia, and help it gain access to clients in the aerospace, medical and semiconductor industries.
KGI notes that street estimates have 2 “buy” calls and one “hold”, with an average target price of $1.71. At this level, it is a 56% upside from its last closed price of $1.10 on Feb 11.
GVT’s FY2021 and FY2022 earnings per share (EPS) is forecasted to grow 124% y-o-y and 80% y-o-y, respectively, bringing down forward P/E to 22x and 12x.
The company’s full-year results will likely be announced on Feb 25, and the brokerage thinks this could provide a much-needed catalyst for its shares, after having corrected by as much as 30% from its peak of $1.45 on Sep 7, 2021.
KGI notes that GVT is currently trading just slightly below the $1.14 placement price where it raised gross proceeds of $39 million back in September 2021.
As at 2.59pm, shares of GVT were trading at $1.06, four cents lower than its previous close or 3.64% lower. KGI also gives the stock an entry price of $1.08 and stop-loss price of 98 cents.
