Compiled by Kenneth Lim
AVI-TECH ELECTRONICS | BUY
TARGET PRICE: $0.59
AUG 21 CLOSE: $0.47
RHB Research, Aug 21
Avi-Tech enjoyed a strong Q4 FY17, with net profit after tax surging 62 per cent year-on-year.
A special dividend of $0.008 was also announced, bringing total FY17 dividend to $0.028, representing an attractive yield of 6 per cent.
We came away from the briefing still positive on its long-term growth, which would likely come from electric cars and increased electronics in the automotive sector.
We also think that there is a high possibility it would likely acquire an accretive target in the near term.
As a result, we roll over our discounted cash flow-based target price to a slightly higher $0.59 (from $0.52, 26 per cent upside), representing a 12 times FY18 forecast price-earnings ratio.
Q&M DENTAL GROUP | NEUTRAL
TARGET PRICE: $0.61
AUG 21 CLOSE: $0.645
Phillip Securities Research, Aug 21
Q&M Dental is on track to meeting its target of opening at least five new clinics per year - having opened two new clinics in Singapore and launched three acquisition deals in Singapore and Malaysia (two are yet to be concluded).
Management plans to continue its expansion momentum for its dental clinics as well as its team of general dental practitioners and dental specialists in Singapore and Malaysia in H2 2017.
YOMA STRATEGIC HOLDINGS | HOLD
TARGET PRICE: $0.5
AUG 21 CLOSE: $0.575
OCBC Investment Research, Aug 21
Yoma recently announced that the consideration for SHC Capital Asia Limited's (SHC) acquisition of a target company, through the issuance of new consolidated SHC shares, will be reduced from about $70.7 million to about $69.7 million.
As announced in October 2016, this target company would hold Yoma's tourism-related businesses that the group is looking to spin off as part of a reverse takeover (RTO) of SHC.
This reduction was due to the target company agreeing to assume certain liabilities amounting to about $980,900.
Consequently, we estimate that Yoma's post-RTO shareholdings in SHC will now increase from 53.48 per cent to approximately 54.1 per cent before any compliance placement.
We reiterate our view that the proposed spin-off of the group's tourism assets into an independent platform is a positive one.
The group will be better positioned to focus on its core business units while also participating in Myanmar's growing tourism market through a specialised yet separate platform.
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