To recap, Memtech posted 1Q18 net profit of US$1.3 million ($1.7 million), which was 16% lower than 1Q17 and formed 10% of CIMB’s and consensus full-year forecasts. Excluding US$0.5 million forex loss, core net profit would have improved 8% y-o-y to US$1.8 million, deemed in line as the house forecasts a seasonally stronger 2H18.
SINGAPORE (Apr 27): CIMB is maintaining Memtech International at “add” as it continues to like the stock for its double-digit earnings growth, 4% dividend yield, balance sheet strength and customer diversification efforts.
In a Thursday report, CIMB Ngoh Yi Sin sees potential in its industrial & medical segment, which saw 103% y-o-y sales growth thanks to the launch of a new series of IoT-enabled, handheld scanner, and possibly adding radio communication devices to its product portfolio.
