Image The following 9 stocks are picks of NRA Capital and they were highlighted at a recent seminar organized by Lim & Tan Securities.

The powerpoint presentation from which the following text was taken can be accessed here. Read it to understand what are the drivers for the tech sector currently. Also, visit

Serial's recent AGM was well-attended by those who wanted to know its prospects. NextInsight photo

Serial System
Share price: $0.115
Our fair value: $0.140
(upside potential 21%)

 A major trader for semiconductors and electronic components

 Largest distributor for Texas Instrument in China and Korea now

 Demand for electronics components will continue to be driven from Asia -the current component shortages remain

Reasonable dividend yield at 4.3%

 FY10F P/E of 8x, we see catalysts including the stronger than expected earnings from the more robust GDP numbers in Singapore and the region

Hisaka Holdings
Share price: $0.255
Our fair value: $0.40
(upside potential 58%)

 Mechanical motion components provider

 Beneficiary of the semiconductor equipment spending cycle

 Medical and ECO divisions are also firing up

 Order remain firms and supply is still tight

 Expect sales to double this year

 Debt free with net cash per share of 6 cts

 Low FY10F P/E of 5.4x

Share price: $0.10
Our fair value: $0.21
(upside potential 110%)

 Semiconductor equipment manufacturer, comprising principally tape and reel services

 Strong proxy to recovery semiconductor equipment cycle

 Outstanding legal suits and inter-company loans weighing on stock but unjustified

 Rebuilding its balance sheet

 Low FY10F P/E of 3.6x and trading at only 0.6x P/B (NTA of 19.5cents)

Manufacturing Integration Technology
Share price: $0.150
Our fair value: $0.210
(upside potential 40%)

 Semiconductor & Solar equipment manufacturer

 To benefit from semiconductor equipment spending

Manufacturing activities picking up

 Solar equipment market another avenue of growth

 Expect FY10 revenue to double

 Net cash per share $0.085

 Trading at FY10F & FY11F Blended P/E of 6.1x

Kinergy Ltd
Share price: $0.090
Our fair value: $0.195
(upside potential 117%)

 Semiconductor equipment EMS

 Key customer, Kulicke & Soffa has delivered strong results

 Ride on strong semiconductor capital equipment spending

 Expect revenue to surge 109% in 2010

 Has to watch its balance sheet, but sustained revenue should strengthen balance sheet

 Trading at P/E of only 2.4x and P/B of 0.5x.

SS Wong, executive chairman of Broadway. NextInsight photo

Broadway Industrial
Share price: $1.15
Our fair value: $1.62
(upside potential 41%)

 Manufacturer of foam plastics for packaging and precision-machined components in Asia

 All business engines are doing well:-

 HDD component benefit from growing PC demand

 Non HDD component benefit from Semiconductor equipment up cycle

 Packaging division is also benefit from recovery in tech demand

Low FY10F P/E of 5x

Share price: $0.535
Our fair value: $0.82
(upside potential 53%)

 A precision metal component/stamping manufacturer

 Strong proxy to Japanese electronics especially consumer products

 Demand for large LCDs and LED are growing strongly

 Attractive dividend yield at 9%

 Trading at only 0.6x P/B (NTA of 87.7 cents)

Avi-Tech offers a dividend yield of 5.2%

Avi-Tech Electronics Ltd
Share price: $0.195
Our fair value: $0.210
(upside potential 7.7%)

 Provides Burn-in services and Board Mfg for Semiconductor industry

 Burn-in & Board Mfg to benefit from semiconductor recovery growth

 Has been a laggard, dragged down by engineering services segment

 Net cash per share of $0.128

 Stripped of net cash, trading at FY10F P/E is only 4.9x

Good dividend yield of 5.2%

 Potential M&A opportunities

Riverstone Holdings Ltd
Share price: $0.55
Our fair value: $0.76
(upside potential 38%)

 Supplies cleanroom gloves to HDD & Semiconductor industries

 1Q10 net profit grew 475%

 Capacity to reach 1.85bil gloves by end FY11.

 Expect EPS to surge 38.4% in FY10

 Strong operating cashflow and balance sheet

 net cash of RM50.7mil

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