Manufacturing Integration - Unique Micro Cap Play

Investing thesis –
- Trailing PE 3.7x
- Strong financial position
- Strong FCF (3.6 cents)
- Positive Trends on 2 Major Business sectors (solar,
semi conductor)
- Strong Order Books (sgd 56m)

UOB Kay Hian reported on the attractiveness of this stock but without giving its rating (perhaps they do not rate on micro caps). Since then price has moved up by 7.6%. I do not think any research houses has rated this stock (very much “under the radar).

Current price is cum dividend 0.5 cents (yield 3.2%). Given the positive business sentiments and its strong cash generative capacity, I would not be surprised of a higher dividend pay-out for FY15. Catalysts could be driven by more order wins and research coverage.

Manufacturing Integration can be considered both a “growth and value” play – unique combination.

Have included this stock in my small cap portfolio.

Mfg Integration surged 13.9% to 18 cents today. Despite this strong momentum, ex-cash PE is only at 3.4.

MI is an exciting "growth/value"play and in my view a "must have" in our portfolio.

Agree with you it is a turnaround story. How long the rally can continue would depend on its ability to sustain its order book and it's gross margin.

Looking forward to its first quarter result announcement.

Mfg Integration has been on uptrend and has hit 20c today. Momemtum is positive and well supported.

There are a few positives to support the share price momentum:-

1. Strong order books
$56Mil is equivalent to more than 80% of LY revenue
2. Strengthening of USD
Expect margin to maintain or higher than last year
3. Diversified earnings
Management is targeting $100M sales
4. Higher dividends
Mgt has hinted that in annual report.

Next week, the share price should break 5 year high. From there on the sky is the limit. At 8X PE, 40cts is possible.

To those who got in early - well done. Price closed at 25 cents today.

With a burgeoning order book (exceeding FY14 sales), I should expect share price to stay firm.