SINGAPORE (May 15): Jadason Enterprises’ turnaround in 1Q17 earnings puts it on track for explosive growth ahead, according to RHB Research.
Jadason posted a 7% increase in earnings to $280,000 for the first quarter ended March, from $261,000 a year ago.
According to RHB analyst Jarick Seet, the printed circuit board (PCB) drilling and mass lamination service provider would have posted a loss a 1Q last year without a one-off disposal of raw materials.
RHB is keeping its “buy” call on Jadason with an unchanged target price of 15 cents.
(See: RHB starts coverage of Jadason with high hopes)
“Going forward, management has indicated that its generously profitable manufacturing and support services segment is likely to do well in 2H17, as its long term customers have indicated their intention to increase their production capacities,” says Seet in a Monday report.
Revenue for the segment is expected to increase by 30%, according to Seet.
In addition, Seet expects Jadason to see “explosive growth” in the second half of 2017 and enjoy bumper profits in FY17F-18F.
As at 1.45pm, shares of Jadason are trading 13.8% lower at 7.5 cents.
