engineering.Manufacturing Integration Technology (MIT) designs, develops,

Immediate outlook:

strong volume. With both its MACD and RSI being positive, we expect the stock to rally

further from here. Now is a good time to jump in as we have a

stock. Buy now at S$0.23-0.25. Put a stop just below its 200-day SMA at S$0.205. The

next target for the stock is at S$0.30-0.31.The stock is broke out of its consolidation triangle yesterday onTechnical Buy call on the

Medium term outlook (2-6 months):

out of its LT downtrend resistance back in November 2006. The stock appears to be well

supported by the 40-week SMA. Weekly MACD and RSI starting to edge up again. The

bullish saucer formation is expected to keep price steady. Long-term investors should

continue to buy now, as there is a good chance that the stock could retest S$0.31,

followed by RM0.36 next.

UOBKAYHIAN

Manufacturing Integrated Technology

Expansion into medical equipment

Manufacturing Integration Technology (MIT) has expanded into the broader

equipment contract manufacturing (ECM) business to moderate the swings in

earnings created by the cyclical nature of the semiconductor industry. The

company has cultivated relationship with OEMs of industrial equipment

looking to outsource manufacturing to Asia. This allows the company to

diversify into new growth areas such as medical, automotive and aerospace

industries. Management sees growth via M&A activities to build up

capabilities for the new ECM business:

Gainning entry into medical equipment.

Accuron Technologies to acquire 100% of AMS Biomedical for S$0.8m in

cash. AMS Biomedical provides ECM services for medical equipment. The

company is already ISO13485 certified and will accelerate the expansion into

medical equipment and devices.

AMS Biomedical?s largest customer is Germany-based Dornier MedTech, the

inventor of extracorporeal shock wave lithotripsy - a non-invasive procedure

that disintegrates kidney stones using high intensity shock waves. Dornier

has the largest installed base of over 1,000 lithotripters on a worldwide basis.

AMS Biomedical provides handler modules for Dornier?s lithotripters. Other

notable customer includes Siemens Medical.MIT entered into MOU with

Expanding into front-end semiconductor.

Right Industrial Systems Engineering (RISE) for S$0.8m in cash. RISE

specialises in providing wet bench equipment for wafer fabs and air pollution

control systems for industrial usage. The acquisition allows MIT to establish

market presence in the front-end segment of semiconductor production. The

acquisition comes with profit guarantee of S$0.6m in aggregate for FY07 and

FY08.MIT acquired a 70% stake in

Extremely undervalued.

net cash position is equivalent to 60% of MIT?s market capitalisation of

S$55m. The stock offers attractive valuation with FY07 PE of 6.7x and P/B of

1.1x. Reiterate BUY with target price of S$0.30 or FY07 PE of 8x (sector:

9.4x).MIT has net cash of S$33m or S$0.15/share. ItsThe medium term outlook is positive after it broke