Shares of Amtek Engineering (AMEL.SI), a Singapore-listed manufacturer of precision metal, plastic and rubber components, rose as much as 3.9% after DBS Vickers initiated coverage on the firm with a “buy” call and a $1.65 target price.

At 0311 GMT, Amtek shares were up 2.3% at $1.32 on a volume of 3.5 million shares.

 

DBS Vickers said Amtek offers a compounded annual growth rate of 59% from its 2010 to 2013 financial years and is trading at only 8-9 times FY11/12 price-earnings ratio, below the sector average of 10-11 times.

 

The brokerage added that after a private equity buyout in 2007, Amtek’s management had reorganised the business to move it further up the value chain as well as to improve the cross-selling of its products to existing and new customers.

 

Amtek was delisted from the Singapore bourse after being bought out by private equity firm CVC Capital (CVC.UL) and a unit of Standard Chartered (STAN.L).