• BUY Entry – 1.20 Target – 1.37 Stop Loss – 1.12
  • Grand Venture Technology (GVTL) provides engineering, assembly, testing and product lifecycle management services for the manufacture of complex precision machining and sheet metal components and modules. Its clients are mainly in the semiconductor, analytical life sciences and electronics sectors, and includes multinationals such as Teradyne and BE Semiconductor Industries. 
  • Flying into aerospace and diving into medical diagnostics. GVTL last Friday (17 Dec) announced the S$20mn acquisition of two homegrown companies. The acquisitions are expected to be completed by 1Q2022 and will augment the group’s capabilities in China and Malaysia, and help GVTL gain access to clients in the aerospace, medical and semiconductor industries. 
  • Street consensus has 2 BUYS and 1 HOLD, with a 12m average TP of S$1.68 (+40% upside from last close price). FY2021F and 22F EPS is forecasted to grow 124% YoY and 60% YoY, respectively, bringing down forward P/Es to 24x and 15x. In comparison, peers are trading at an average forward P/E of 19x.
GVTL SP (Source: Bloomberg)