In his view, Avi-Tech is currently in a “prime position to ride on the world’s march towards smart cities and digitalisation” after having divested its loss-making US business – in addition to being on track to record stable y-o-y net profit after tax (NPAT) growth of an estimated 10-15% in FY17-18F.
SINGAPORE (March 29): RHB Research is initiating coverage on Avi-Tech Electronics, a total solutions provider for burn-in, burn-in board manufacturing and printed circuit board assembly (PCBA), at “buy” with a target price of 52 cents.
In a Wednesday report, analyst Jarick Seet opines that the group has now successfully recovered from what he calls an “M&A mishap”, and is now trading at undemanding valuations with FY18F ex-cash P/E of only of 4.4x.
