SINGAPORE (Nov 5): Maybank is maintaining its “buy” call on Innovalues with $1.02 target price as its 3Q results beat estimates and the research house expects a strong 4Q, driven by both automotive and office automation.

In 3Q, Innovalues reported a 3% fall in revenue from a year ago on slower China auto sales in Jun-Aug. But net profit was 21% ahead of forecast, mainly on forex gains as USD had strong gains against SGD, MYR and THB, its three major operating currencies. 9M15 net profit met 79% of FY15 forecast.

Offsetting weaker automotive (AU) sales, office automation (OA) took up the slack as customers moved more printer production from China to SEA, benefitting Innovalues in Thailand. Gross margin rose 1.1% pts to 28.4%.

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