Monday, January 3, 2011

Amtek Engineering

Amtek Engineering: CIMB initiates Coverageon grp, with Outperform rating and
$1.52 TP, pegged at 9x CY12 PE. This values places grp at 1 standard dev above its 6-yr mean PE prior to its privatisation in 207.…

Note that grp is a leading metal-stamping company in Asia with varied exposure to industries, rendering it less vulnerable to any slowdown in a particular sector. Cite that valuation is justified in view of grp’s anticipated strong earnings recovery in FY11. Project a 39% earnings CAGR for FY10-13 and see catalysts from strong sets of results, continuous strong growth in the automotive segment, and any M&A announcements.

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