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Anyone guess monday's performance? Seems 0.9 is a very strong support
DBSVicks targets $1.06!!!!!!!CHEONG AH!!!!!!!!!!
In view of the higher-than-expected other
operating expenses, we have nudged down
net profit estimate by a marginal 3.8% for
FY07 earnings, but have kept FY08
estimates intact.
We remain positive on Amtek?s growth
prospects. We are raising our target price
to S$1.06, pegged to a slightly higher PE of
10x FY08 earnings, in line with sector?s
average. Apart from good fundamentals,
we believe its share price could continue to
trend higher, in light of the ongoing M&A
activities. Maintain
BUY.CIMB targets $1.08!!!!!!!! CHEONG AH!!!!!!!!!
Forecasts and Outperform rating unchanged.
numbers but raised our target price from S$1.00 to S$1.08 as we roll over our 10x
target P/E from CY07 to CY08. Maintain Outperform. We see catalysts from more
sets of positive results and possible dividend surprises.
We have kept our FY07-09Hit new hight 97cts,1st hr of trading done almost 8m. Today vol. may cross 20m again.
Lim & Tan Securities Pte Ltd: Daily Review, 2 May 2007 Page 3 of 9
SGX-ST Member, SGX-DT (CNCM)
TECHNOLOGY SECTOR
Dividing Fortunes
Amtek
�� 3Q ended March 2007 net profit rose 36% yoy on
the back of 23% yoy increase in sales to US$162mln.
Sequentially net profit declined 15% while sales
declined 5% respectively, in line with the seasonal
trend. The results were in line with expectations.
�� Operating cash flow was robust at US$19mln, more
than enough to cover capex of US$6mln. After
repayment of loans of US$8mln cash holdings was a
robust US$49.3mln versus debts of US$90mln. With
shareholders funds of US$207mln, net gearing is
only 20%.
�� Looking ahead, management remains optimistic of
prospects, citing strong demand for automotive,
computer and computer peripheral sectors, and the
outsourcing trend from customers in
US. A new plant in
1Q ending Sept 2007 will enable the company to
capitalize on further growth opportunities there.
Management will also be setting up a tooling design
office in
�� At 7.5x forward PE against 25-30% growth potential
going forward and yield of 4%, we maintain BUY.
CNA reported Private equity funds buying Amtek, Seksun, Beyonics & UTAC amongst other tech stocks.
Hopefully, AMTEK could cross $1 mark this week. Very solid 3Q nos.release this morning, will put them in a strong bargaining position vis-a-vis MMI takeover price ($1.65). Moreover they are moving into India, Russia and Vietnam soon after establishing a strong presence in Eastern Europe (Poland) and China.
Topline revenue, 3Q n 9-mth, up 23% and 15% respectively.
Bottomline profit, 3Q n 9-mth, up 35% and 33% respectively
Bottomline profit for 9-mth already surpassed full yr FY06
EPS (9mth) = 7.23 cts (up 31.7%)
NAV @ 31.3.07 = 67.09 cts
I doubt the majority shareholders will consider anything below $1.65. Amtek is a global player, in China India and only 1 with major plants in Eastern Europe. Looking at today's trade - hit new high $0.955 today & almost 4m (out of 6m+) done at $0.93 or higher. This buyer must know something, could be the new owner grapping whatever he can b4 the definitive takeover. If 3Q Results (31.3.07) expected b4 1 May 07 is good, then $1.65 is possible.
| Last | Trades | Volume | BuyVol | Mid | SellVol |
| 0.900 | 16 | 361,000 | 243,000 | 0 | 118,000 |
| 0.905 | 9 | 310,000 | 25,000 | 0 | 285,000 |
| 0.910 | 11 | 339,000 | 81,000 | 0 | 258,000 |
| 0.915 | 3 | 45,000 | 31,000 | 0 | 14,000 |
| 0.918 | 1 | 498,000 | 0 | 498,000 | 0 |
| 0.920 | 9 | 173,000 | 163,000 | 0 | 10,000 |
| 0.925 | 22 | 515,000 | 269,000 | 0 | 246,000 |
| 0.930 | 65 | 1,520,000 | 533,000 | 0 | 987,000 |
| 0.935 | 22 | 324,000 | 201,000 | 0 | 123,000 |
| 0.940 | 40 | 508,000 | 235,000 | 0 | 273,000 |
| 0.945 | 39 | 842,000 | 336,000 | 0 | 506,000 |
| 0.950 | 20 | 596,000 | 158,000 | 0 | 438,000 |
| 0.955 | 1 | 10,000 | 0 | 0 | 10,000 |
| TOTAL | 258 | 6,041,000 | 2,275,000 | 498,000 | 3,268,000 |
Using MMI takeover PE of 11.4X, the value for Amtek would be around $1.20.
Cheers to all vested and soon to be vested!
Sorry typo error:
EPS should be US$0.0455 (MMI) vs. US$0.0344 (Amtek).
NTA is correct. US$0.314 (MMI) vs. US$0.439 (Amtek).
Today, contra players cut position. IF u compared Amtek to MMI (takeover price of S$1.65), Amtek NTA is even higher than MMI, so very good chance that Amtek's takeover price about $1.65 too. Keep our fingers crossed......
| EPS | NTA | Takeover | |
| (US $) | (US $) | Price(S$) | |
| Half-yr | |||
| MMI | 0.455 | 0.314 | 1.65 |
| AMTEK | 0.344 | 0.439 | ?? |
Below is the announcement:
The Board of Directors of Amtek Engineering Ltd (the ?Company?) wishes to inform shareholders that certain shareholders, including a substantial shareholder and shareholders who are Executive Directors, have been approached in relation to possible transactions involving their shares in the Company, which may or may not lead to an offer for the Company. Shareholders are however advised that there is no certainty that the aforesaid transactions will proceed.
Shareholders are further advised to exercise caution when dealing in the shares of the Company and to refrain from taking any action in respect of their shares in the Company which may be prejudicial to their interests. The Company will make the appropriate announcement if there is any material development.
The Directors of the Company (including any director who may have delegated detailed supervision of this Announcement) have taken all reasonable care to ensure that the facts stated and opinions expressed in this Announcement are fair and accurate and that no material facts have been omitted from this Annoucement, and they jointly and severally accept responsibility accordingly.