Excerpts from analysts' reports on Innovalues
CIMB says 'hold', target price 91 cents
| Innovalues | |
| Share price: 90 c |
Target: 91 c |
Analysts: Ngoh Yi Sin & William Tng, CFA
■ 1H16 sales of S$57.4m in line with our/consensus full-year forecasts at 45%.
■ Supported by steady margins, 1H16 core net profit was also in line with our expectations, at 45% of our FY16 forecast, but below consensus at 41%. 
Quality control: Visual inspection of all products to ensure they are in accordance with customers’ requirements. NextInsight file photo.■ Management sees good growth in key AU and OA customers’ orders for FY16-18.
■ Cash-generative, FY16-18F dividend yields of 4.5-5.3%, with potential M&As.
■ FY16-18 forecasts unchanged, but EPS estimates and DCF-derived TP fell marginally due to enlarged share base. Maintain Hold recommendation.
Full report here.
| ♦ Maybank Kim Eng says 'buy', tp $1.15 | ||||
Analyst: Gregory Yap |
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DBS Vickers says: Upgrade to BUY with a higher TP of S$1.07
Analyst: Paul Yong, CFA
| Innovalues | |
| Share price: 90 c |
Target: $1.07 |
Upgrade to BUY with a higher TP of S$1.07 as we roll forward our earnings base to FY17F; current valuation appears attractive for a potential M&A play.
Following 2Q16 results, which were largely in line with our expectations, we only trim our estimates for FY16F/17F slightly by 0.8%/4.3% as we remain cautiously optimistic of a stronger 2H16.
After rolling forward our earnings base to FY17F (from blended FY16/17F previously), we arrive at a higher TP of S$1.07, which offers potential upside of 19%.
As prices have corrected by almost 20% over the past month - from a high of S$1.11 to S$0.895 currently, we see current valuation of 10x FY17F PE as attractive for a potential M&A play.
Full report here.
