Company Name: AMTEK ENGINEERING LTD
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.82 |
DBS Vickers upgraded precision engineering firm Amtek Engineering to buy from hold and raised its target price to $0.82 from $0.75, citing better than expected quarterly earnings.
Shares of Amtek were 1.6% higher at $0.65 and have gained 10.2% since the start of the year.
Amtek said its third quarter net profit fell 21% to US$7.8 million ($9.8 million) from a year ago but this was higher than DBS’s expectations due to stronger than expected sales in all business segments.
Near term earnings are expected to improve, helped by a recovery in the hard disk drive segment and better margins, DBS said.
Amtek also announced a surprise interim dividend of 2.3 cents. DBS said it expects Amtek to declare another dividend for the next quarter, lifting its dividend payout ratio to 55% from 50%.
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