Innovalues: (S$0.72) Better value now
After heavy selling pressure yesterday, Maybank-KE reckons Innovalues now presents a buying opportunity for investors as business prospects remain excellent.
House expects Innovalues' 2Q15 results, to be released in early Aug, to come in line with earnings expectations of $5.6m (+32% y/y).
There is also scope for upside if traction is better than expected on approvals on new auto parts which will go into mass-production in 2H15, and margin improvement from continuing productivity measures.
Lastly, with $30m in cash and a lightly-geared balance sheet, there could also be scope for Innovalues to make EPS-accretive acquisitions.
The house maintains its Buy rating with TP of $1.00.
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