with a successful turnaround last year, expect this year's results to look even better with a huge order book. Another record breaking year looks to be on the way with order books of already > 80% of last year's revenue at this stage of the year!
Management seems to be prudent, with huge cash hoard in the company books. This allows for good expansion growth either organic or by M&A. Good business growth prospects in industries they're operating in (semiconductor/solar) as well.
Company is still very cheap with PE ratio of less than 6. Expect share price to hit 30-40cents minimum in the short/mid term with some analysts reports giving it the coverage it deserves.
After a sterling 1H performance, the sell-down of this stock is way overdone. If assuming 2H performance is only 50% of 1H and based on the trailing dividend payout % (24%), the dividend yield for FY15 would exceed 9%.
Mfg Integration is my core small cap growth pick and I have also included in my high yield portfolio.
MFG is trending up nicely since hitting a low of 20 cents in 2H.
Based on back of envelope calculation and assuming 2H results to mirror its excellent 1H
performance, we are staring at a low single digit PE for FY15 and a potential sharp dividend hike (yield > 8%) based on trailing payout ratio.
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