Monday, March 9, 2015


Ellipsiz: UOB Kay Hian initiated coverage on counter today with a Buy and TP of $0.171, representing an 77.8% upside.

While Ellipsiz is now a shadow of its former self, the group continues to be held in high regards in the industry as it was ranked the second-best supplier of subsystems by VLSI Research in 2013.

With an estimated 4% share of the global probe card market and a strong net cash of S$26m (50% of its current market cap), house thinks Ellipsiz is an attractive M&A target as the industry continues to consolidate. Despite a gradual earnings recovery in the last few years, valuation remains at depressed levels. Ellipsiz is now trading at an attractive ex-cash FY15F PE of 3.5x and dividend yield of 4.3%.

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