SINGAPORE (July 3): Founder and CEO of semiconductor services provider Avi-Tech Electronics, Lim Eng Hong, has acquired 200,000 of his company’s shares on the open market. The purchase was made on June 21. Shares in Avi-Tech have appreciated more than 50% since the beginning of the year and are trading at the highest levels in nearly a decade. Lim paid $89,854 for the shares, or about 45 cents apiece, increasing his direct stake in the company to 26.89%. He also has a deemed interest of 7.72%.
Avi-Tech provides printed circuit board assembly and burn-in services for chipmakers, and stands to benefit from the increasing use of electronics. The company said in its 2016 annual report that it sees growing and resilient demand for electronic components used in the automotive industry, particularly as the sector requires more sensors in its move towards autonomous vehicles. This in turn contributes to growth in its burn-in services business, which it has expanded to offer services for a wider range of devices. Avi-Tech has also expanded its capabilities to offer PCB assembly services to the medical, mobile communications and aviation industries.
In a recent report, RHB Research Institute Singapore analyst Jarick Seet forecasts that the company should see a sustainable 10% growth in earnings annually. “The long-term growth prospects are positive, in line with the macro trend of global digitalisation,” he writes.