Global Testing

Global Testing: DMG says 3Q14 results were favorable, with net profit rising 35% y/y to US$1.1m 9M14 net profit surged 265% to US$2m , making up 77% of full year estimate. Boost came from strong performance of its main customer , TSMC, which contributes 50% of revenue. In view of the ongoing semiconductor sector recovery in 2014, DMG believes TSMC's turnaround is in place and GLobal Testing will continue to ride on TSMC's storng earnings going forward. Global Testing boasts net cash of $0.6 per share, making up 68% of the entire mkt cap . IN addition, it is supported by steady share buybacks since 2008. From Apr '14, 4.23m shares have been acquired. DMG maintains Buy with TP $0.165, based on peer average 1.1x P/B.