Avi-Tech: (S$0.30) Possible upward re-rating on exit of SGX Watch-List- Removed from the SGX Watch-List with immediate effect, slightly earlier than expected.- Avi-Tech is a beneficiary to the rising use of electronic components, particularly in the automotive and consumer industries, where reliability and fail-safe for the parts are critical.- The recent Samsung Galaxy Note 7 smartphone incident, which dented reputation for the Korean powerhouse, highlighted the severity of insufficient burn-in testing.
- Further, the company is backed by a healthy net cash position (including fixed deposits) of $28.3m, or $0.165/share, 54% of its current market cap.
- Avi-Tech is attractively valued at 7.9x trailing P/E (3.7x ex-cash), or a 30% discount to its peer Sunright, and offers a indicative dividend yield of 6.1%.
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