In a Friday report, Seet says Fu Yu has a net cash of 14 cents per share, zero debt, strong cash generation capabilities and low capex requirements.
SINGAPORE (Feb 24): RHB is maintaining its “buy” call on Fu Yu, the manufacturer of precision plastic moulds, as it believes the counter is an attractive candidate for privatisation or takeover, with net cash position and zero debt.
“We also think it can weather through the current tough macroeconomic environment. In addition, it continues to trim costs and improve margins,” says analyst Jarick Seet.
