Avi-Tech Elec­tron­ics | Neu­tral

The Straits Times - - BUSINESS -

Sept 12 close: 34.5 cents Tar­get price: 38 cents Bro­ker: RHB Re­search, Sept 12

As Avi-Tech mainly pro­vides burn-in ser­vices for chip­mak­ers in the au­to­mo­tive sec­tor, where there has been grad­ual and steady growth, we ex­pect the burn-in busi­ness to con­tinue to grow by 10-15 per cent per an­num, and not be im­pacted by the slow­down in the semi­con­duc­tor sec­tor.

In H2 FY18, its engi­neer­ing seg­ment took a hit due to de­lays in cus­tomer projects and a slow­down in or­ders. Man­age­ment be­lieves the seg­ment has hit a low al­ready, and busi­ness will likely pick up from here with new cus­tomers. But it will likely take six to nine months to ramp up, and the engi­neer­ing busi­ness will likely con­tinue to be a drag on prof­itabil­ity in FY19 – al­beit to a smaller ex­tent. With a slow­down in the sec­tor, we main­tain “neu­tral” on the counter.

Newspapers in English

Newspapers from Singapore

© PressReader. All rights reserved.