AVI-Tech

AVI-Tech: CIMB features the counter in an unrated report, where the house highlights that after three straight years of losses, expect AVI-Tech (AVIT) to return to the black in FY6/15, thanks to the company’s exit from the loss-making imaging business and the improving outlook for the burn-in services and engineering services business segments. Expect the company’s turnaround in FY15 to be a re-rating catalyst as well as prompt investors to look at the value in AVIT’s book, which consists of $23.6m cash and an understated office property booked at depreciated historical cost. AVIT is worth at least $0.117, conservatively based on 1x trailing P/B.