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Double boost for Dutech’s long-term growth trajectory

Benjamin Cher
Benjamin Cher10/5/2016 12:15 PM GMT+08  • 2 min read
Double boost for Dutech’s long-term growth trajectory
SINGAPORE (Oct 5): CIMB is maintaining its “add” call for Dutech Holdings with an unchanged 61 cents target price as the group has two ongoing developments that could provide positive long-term impact on earnings.
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SINGAPORE (Oct 5): CIMB is maintaining its “add” call for Dutech Holdings with an unchanged 61 cents target price as the group has two ongoing developments that could provide positive long-term impact on earnings.

On a visit to Dutech’s Tongzhou and Sutong production plants in Jiangsu province that contributes 60% to group revenue in FY15, analysts Roy Chen and William Tng noted in a Tuesday report that a new building has been constructed at the Sutong plant to manufacture NuVinci continuously variable planetary (CVP) transmissions, for an undisclosed European automotive player.

Dutech is the only global manufacturer of NuVinci N360 bicycle transmission and while no contract has been signed, Chen and Tng believe Dutech’s track record and technical knowledge makes it well positioned to secure the contract and a new customer. The company is also confident of a contract win and expects trial production to start by end-FY16.

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