Lantrovision

Lantrovision: UOB Kay Hian initiated coverage with a Buy rating and TP of $0.645. Serving primarily the IT and finance sectors, Lantrovision’s customers comprise mostly of global MNCs and major banks in the region. With over 20 years of operational history, Lantrovision has formed and maintained very strong customer relationships, with 70-80% of sales coming from repeat blue chip clientele that have been with the company for more than a decade. Lantrovision is expected to benefit from the increased IT infrastructure spending in the region, supported by the growth in global IT spending. With 64% of market cap supported by net cash, Lantrovision has been generating very strong free cash flow amidst its low CAPEX requirement. At $0.475, Lantrovision is trading at a compelling valuation of 4.0x (ex-cash) FY15F PE, which is at a steep 52% discount to its peers’ average trailing 12M PE of 8.3x.