JEP

JEP: NRA Capital has an update post group's 2H13 results, maintaining its Overweight rating and raise TP to $0.067 after rolling forward its 10x PER to FY15, underpinned by a decent 4% dividend yield. House believes that JEP's fundamentals remain strong in the commercial aerospace industry and that there is still room for growth as the group continuities to leverage on its growing recognition in the aerospace and O&G industries. The aerospace segment will remain the group’s main contributor for both revenue and profitability. The new 4-storey building in Loyang is currently under construction and is expected to be operational in 1Q15. It has added 15 new high-end CNC machines in the past two years, increasing capacity by 20%.