SINGAPORE (June 11): CGS-CIMB Research analyst William Tng has initiated coverage on mainboard-listed precision metal part maker Innotek with an “add” call and target price of 57.9 cents, representing an upside of 52.5% for the stock. 

Innotek, which currently serves the consumer electronics, office automation and automotive industries, has five manufacturing facilities in China and one in Thailand as at end December 2019. Its end-customers also include Sony Corp, Bosch and Canon Inc, 

Despite the ongoing Covid-19 pandemic, Tng forecasts prospective dividend yields of 3.95% for the company over FY2020-22F, which will be backed by its “strong balance sheet.”

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