Trek 2000

Trek 2000: Investor sentiment in the counter appears to be growing, with Trek 2000 receiving its maiden initiation (Buy: TP $0.61) yesterday by a local broker. Share price has been setting new 52-weeks high over the last week, despite the recent market rout in the global equities market. The investment theme for Trek stems from its proprietary Wi-Fi enabled FluCard, where the group expects to achieve heightened sales given its partnership with Mattel China. With the FluCard being used in Mattel’s education doll toy and being widely received in China, Mattel has plans to bring the same toy into the US by end 2014, which could translate to significantly more orders for FluCard. Other catalysts in the pipeline would include the ramping up of its e-platform Cloud Stringers and the group’s expansion into consumer Solid State Drives (SSDs). Going forward, Trek is optimistic that business from these new global customers will continue to contribute positively to its performance in the coming quarters. The group aims to target growth in three key areas of the next generation of consumer mobile technology, namely consumer wearable, medical and cloud technologies. Trek currently trades at 10x FY15E P/E and 2.1x P/B.