Excerpts from analyst's report

GlobalTestingCorp5.15Global Testing Corp (GTC SP, NR) a semiconductor testing services provider based in Taiwan. Photo: Company.
KGI Fraser analyst:
 Yuxuan He

Global Testing Corp (GTC SP, NR) a semiconductor testing services provider based in Taiwan, a company we highlighted on 2 Mar and 29 Apr 2015, it goes ex-distribution (S$0.075 per share on pre-consolidated basis) and will have shares traded on a consolidated (20-1) basis today (22 May 2015).

We believe this stock has good potential to be a multi-bagger based on:
(1) Big expected earnings growth just through lower depreciation expense in the coming years.
(2) Strong ability in generating positive cash flows over the last few years.
(3) High likelihood of paying dividends going forward; if GTC were to pay just one-third of FY14’s free cash flow, the stock would yield about 12% on ex-distribution basis.
(4) Sanguine outlook for the semiconductor industry.
(5) Extremely cheap valuations when compared to peers.

Our fair value for the stock lies in the range of S$3.17-S$4.58 based on P/EBITDA and P/FCF valuation on an ex-distribution and post-consolidation basis. The theoretical price that should trade today, based on yesterday’s closing price is S$1.28 [(S$0.139 – S$0.075) x 20]. 


Share Prices

Counter NameLastChange
AEM Holdings3.7300.080
Avi-Tech Electronics0.275-0.015
Best World1.790-0.010
Broadway Ind0.1190.002
China Sunsine0.410-
Food Empire0.6500.030
Fortress Minerals0.345-
Geo Energy Res0.3550.005
Golden Energy0.7750.005
GSS Energy0.047-
ISDN Holdings0.4050.010
IX Biopharma0.127-
Jiutian Chemical0.0760.001
KSH Holdings0.355-
Leader Env0.053-0.007
Medtecs Intl0.147-0.001
Meta Health0.0250.001
Nordic Group0.475-
Oxley Holdings0.1450.001
REX International0.2350.005
Sinostar PEC0.191-
Southern Alliance Mining0.405-
Straco Corp.0.405-
Sunpower Group0.255-
The Trendlines0.0940.001
Totm Technologies0.110-0.004
UG Healthcare0.1990.001
Uni-Asia Group0.8150.015
Wilmar Intl4.0900.030
Yangzijiang Shipbldg1.390-0.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 494 guests and no members online