DBS analyst Chung Wei Le has kept his “buy” call and 40 cents price target on Fu Yu Corp following the manufacturer’s US$4.5 million acquisition of Avantgarde Enterprise.

The privately-held company, which was sold by one Hu Huilan, was incorporated in Singapore on Nov 2019 and is in the provision of supply chain management services for commodities and trading in exchange-traded financial futures (derivatives). 

Fu Yu, which is funding this deal internally, expects to complete the transaction by July 30. For the FY ended Dec 30, Avantgarde Enterprise reported earnings before tax of $3.73 million and it has a net book value of $3.14 million.

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