Saturday, October 12, 2013

Globetronics : Scaling new heights (DBSV)

Globetronics Technology
BUY RM2.92
KLCI : 1,776.82
Price Target : 12-Month RM 3.50
Scaling new heights

Roadshow indicates strong interest in Group
Key catalysts: TCXO capacity expansion and potentially > 75% payout of FY13 NI
Valuation attractive at 11-13x FY14-15F EPS, supported by 6-7% net yield and 23-24% ROE
Maintain BUY with RM3.50 TP

Impressive growth prospects. Our roadshow with Globetronics in Hong Kong was well-received because the Group has been consistently profitable and offers growth potential as its niche products are used in smartphones and tablets. FY13-14F EPS growth is intact at 22-25% and may be the base case scenario given additional earnings from proximity sensors and TCXO (temperature compensated frequency devices).

Key catalysts. Key takeaways from the roadshow are: i) Possible ramp-up of TCXO product capacity to 15m units/month (from 10m); we assumed 9m-11m units in FY13-15 forecast, ii) Potentially higher dividends: the Group may pay out more than our assumption of 75% of FY13 net income, to reward shareholders (9 sen dividend payment will go ex on 16 Oct), and iii) Globetronics is exploring and widening product applications in several industries such as automotive and agriculture, especially LED/lighting components. Also, volume loading remains healthy for its LED, timing devices and proximity sensors.

Maintain BUY, RM3.50 TP. Our TP is pegged to 15x FY14F EPS. Valuations are attractive at 11-13x FY14-15F EPS, supported by 6-7% net yield (75% payout ratio) and 23-24% ROE.

Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 08/10/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)

乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock