DBS Vickers initiates Amtek Engineering (M1P.SG) with a Buy call, and a target of $1.65, which offers 27% upside plus 5.0%-6.0% dividend yield.

It says “Amtek is a pioneering metal stamper founded in Singapore in 1970. After a private equity buyout in 2007, management quickly re-organised the business to move it further up the value chain and to improve the cross selling of higher value added products and services to existing and new customers.”

The house adds, Amtek offers a faster earnings growth rate of 59% CAGR from FY10-FY13F and is trading at only 8x-9x FY11/FY12 P/E, below the sector average of 10x-11x. Shares are up 1.6% at $1.31.