He also expects Jubilee’s proposed acquisition of HonFoong Plastics to facilitate further growth in its mechanical business, which would in turn contribute to the group’s bottomline via the electronics business unit (EBU).
SINGAPORE (June 1): CGS-CIMB Research is maintaining its “add” call on Jubilee Industries Holdings with an unchanged target price of 51 cents, in view of a strong earnings growth outlook post the group’s successful turnaround to net a profit in FY18 amid its recovery in the mechanical business.
In a Thursday report, analyst Colin Tan says he anticipates further improvement in Jubilee’s gross margin going forward to possibly 8% from 5% in FY18, on the back of further expansion in the mechanical business and increasing sales of the higher-value Neophotonics and high capacitance products.
