UOB Kay Hian analysts Llelleythan Tan and John Cheong have initiated coverage on InnoTek with a “buy” call and price-to-earnings (PE) based target price of 82 cents, representing a 54.5% upside on its last-traded share price of 53.5 cents.

The Mainboard-listed precision metal parts manufacturer, which serves the automobile, TV and office automation industries, has a huge exposure to the Chinese market, and looks set to benefit from the recovery in China’s auto sales and robust TV demand due to Covid-19.

“According to our forecasts, strong contributions from InnoTek’s automobiles and TV panels segment will help boost revenue for the rest of FY20 due to robust COVID-19- induced demand, before gradually increasing in 2021-22,” say the analysts.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook