Elec and Eltek

Elec and Eltek: reported a strong set of 4QFY12 results with net profit of US$9.5m (+24.8% y-o-y) on the back of revenue of US$134.9m (+3.2% y-o-y) despite the challenging business environment. Though DMG previously anticipated the inflection point, the co still beat expectation by 10.3% to achieve a respectable net profit of US$35.3m for FY12 on strong high density interconnect (HDI) segment performance. Most notably, the group surprised on the upside with US 11¢/sh final dividend, translating to an attractive FY12 yield of 9.4%. Moving on, the group sounded optimistic towards the outlook and guided positive FY13 results. DMG reiterates, the group's prospects has brightened and that the market has excessively priced-in the negative impact of PC's decline. Maintains Buy. The house intends to adjust its forecasts, and review TP after the analyst briefing. The stock is +2.4% at US$2.18