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Brokers' take

This article is more than 12 months old

Compiled by Navin Sregantan



APRIL 4: $0.265


CGS-CIMB, April 3

GVT is helmed by an experienced management team and has established itself over more than six years as a proven manufacturing component solutions supplier.

Management is focused on expanding the company profitably. This is the main reason for GVT's listing.

Of the initial public offering net proceeds of $10.9 million, only 4.6 per cent will be used to repay some bank loans.

The majority will be used for capacity expansion and possible mergers and acquisitions, according to the company.

GVT is confident it would continue to win new customers and projects from companies in the semiconductor and life sciences industries.

The group has a 10-year agreement with Sico Technology GmbH and its Singapore subsidiary, Sico Asia Quartz, to build up its ceramic and quartz machining capabilities.

GVT is developing sub-micron machining capabilities to cater to customers in the analytical life sciences industry.

The company is also investing in robotics and software for transformation into a smart factory.

Potential re-rating catalysts are continued delivery of strong results and further order wins. Downside risks are pushback in customer orders.



APRIL 4: $1.03


OCBC Investment Research, April 4

Singapore Post (SingPost) announced yesterday that following a strategic review of its US e-commerce businesses, it will commence a sale process of Jagged Peak and TradeGlobal.

The group believes its strengths and strategic competitive advantages are in South-east Asia and Asia-Pacific, which provides attractive growth opportunities.

As mentioned in our earlier report, Expect Impairments For US Segment on Feb 1, the US businesses are underperforming, should remain loss-making in the current financial year, and there is the risk of impairments.

We estimate that the carrying value of the US businesses to be around $90 million to $100 million; recall that SingPost saw around $185 million in related impairments in FY2017.

We maintain our "hold" call on the stock with a fair value estimate of $1.

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