SGX:BKY

Stock Analysis Report

Executive Summary

Avi-Tech Electronics Limited provides burn-in, manufacturing and printed circuit board assembly, and engineering services for the semiconductor, electronics, life sciences, aviation, and other industries.

Rewards

PE ratio (12.9x) is below the SG market (13.1x)

Earnings grew by 36.9% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Does not have a meaningful market cap (SGD71M)



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Valuetronics Holdings

SGX:BN2

Share Price & News

How has Avi-Tech Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BKY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

BKY

-0.2%

SG Semiconductor

0.2%

SG Market


1 Year Return

33.9%

BKY

43.1%

SG Semiconductor

2.4%

SG Market

Return vs Industry: BKY underperformed the SG Semiconductor industry which returned 43.1% over the past year.

Return vs Market: BKY exceeded the SG Market which returned 2.4% over the past year.


Shareholder returns

BKYIndustryMarket
7 Day3.8%-0.2%0.2%
30 Day9.2%9.7%-1.3%
90 Day20.3%35.2%-0.1%
1 Year43.4%33.9%58.8%43.1%6.6%2.4%
3 Year77.1%45.6%171.9%110.0%17.3%4.7%
5 Year308.1%184.2%236.6%117.3%14.6%-4.7%

Price Volatility Vs. Market

How volatile is Avi-Tech Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Avi-Tech Electronics undervalued compared to its fair value and its price relative to the market?

12.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKY (SGD0.42) is trading above our estimate of fair value (SGD0.21)

Significantly Below Fair Value: BKY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BKY is good value based on its PE Ratio (12.9x) compared to the Semiconductor industry average (14.3x).

PE vs Market: BKY is good value based on its PE Ratio (12.9x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: BKY is poor value based on its PEG Ratio (12.9x)


Price to Book Ratio

PB vs Industry: BKY is overvalued based on its PB Ratio (1.4x) compared to the SG Semiconductor industry average (0.7x).


Next Steps

Future Growth

How is Avi-Tech Electronics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKY's forecast earnings growth (1% per year) is below the savings rate (1.8%).

Earnings vs Market: BKY's earnings (1% per year) are forecast to grow slower than the SG market (6.6% per year).

High Growth Earnings: BKY's earnings are forecast to grow, but not significantly.

Revenue vs Market: BKY's revenue (3.3% per year) is forecast to grow slower than the SG market (5.6% per year).

High Growth Revenue: BKY's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKY's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Avi-Tech Electronics performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKY has high quality earnings.

Growing Profit Margin: BKY's current net profit margins (16.2%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: BKY's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: BKY's earnings growth over the past year (36.9%) exceeds its 5-year average (9% per year).

Earnings vs Industry: BKY earnings growth over the past year (36.9%) exceeded the Semiconductor industry -5.9%.


Return on Equity

High ROE: BKY's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Avi-Tech Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: BKY's short term assets (SGD45.7M) exceed its short term liabilities (SGD5.7M).

Long Term Liabilities: BKY's short term assets (SGD45.7M) exceed its long term liabilities (SGD2.4M).


Debt to Equity History and Analysis

Debt Level: BKY is debt free.

Reducing Debt: BKY has no debt compared to 5 years ago when its debt to equity ratio was 5.1%.

Debt Coverage: BKY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BKY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BKY has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BKY's debt is covered by short term assets.


Next Steps

Dividend

What is Avi-Tech Electronics's current dividend yield, its reliability and sustainability?

5.54%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.6%markettop25%5.5%industryaverage4.0%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: BKY's dividend (5.54%) is higher than the bottom 25% of dividend payers in the SG market (2.56%).

High Dividend: BKY's dividend (5.54%) is in the top 25% of dividend payers in the SG market (5.46%)


Stability and Growth of Payments

Stable Dividend: BKY's dividend payments have been volatile in the past 10 years.

Growing Dividend: BKY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.1%), BKY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BKY's dividends in 3 years are forecast to be covered by earnings (51% payout ratio).


Next Steps

Management

What is the CEO of Avi-Tech Electronics's salary, the management and board of directors tenure and is there insider trading?

15.7yrs

Average board tenure


CEO

Eng Hong Lim (70yo)

0yrs

Tenure

S$524,000

Compensation

Mr. Eng Hong Lim serves as the Chief Executive Officer of Avi-Tech Electronics Limited. Mr. Lim Founded Avi-Tech Electronics Limited. He has more than 35 years of experience in the semiconductor industry a ...


CEO Compensation Analysis

Compensation vs Market: Eng Hong's total compensation ($USD0.00) is below average for companies of similar size in the SG market ($USD375.95K).

Compensation vs Earnings: Eng Hong's compensation has been consistent with company performance over the past year.


Board Age and Tenure

15.7yrs

Average Tenure

70yo

Average Age

Experienced Board: BKY's board of directors are seasoned and experienced ( 15.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$39,15019 Jun 19
Eng Hong Lim
EntityIndividual
Role
Chief Executive Officer
Founder
Shares145,000
Max PriceS$0.27
BuyS$14,85018 Jun 19
Eng Hong Lim
EntityIndividual
Role
Chief Executive Officer
Founder
Shares55,000
Max PriceS$0.27

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Eng Hong Lim (70yo)

    Founder

    • Tenure: 0yrs
    • Compensation: S$524.00k
  • Toon Hai Lau (60yo)

    Vice President of Quality Assurance

    • Tenure: 0yrs
  • Alvin Lim (43yo)

    COO & Executive Director

    • Tenure: 1.3yrs
  • Bambang Handoko Sutedjo

    Director of Sales

    • Tenure: 0yrs
  • Desmond Ow Yang

    Director of Operations - Services

    • Tenure: 0yrs
  • Allan Ngo

    Director of Operations - Manufacturing

    • Tenure: 0yrs
  • Tan Poh

    Executive

    • Tenure: 0yrs
  • Ng Kuay

    Executive

    • Tenure: 0yrs
  • Kurien Mathews

    Executive

    • Tenure: 0yrs
  • Lee Meng

    Executive

    • Tenure: 0yrs

Board Members

  • Eng Hong Lim (70yo)

    Founder

    • Tenure: 0yrs
    • Compensation: S$524.00k
  • Thiam Beng Khor (77yo)

    Independent Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: S$45.00k
  • Chung Meng Goh (61yo)

    Non-Executive & Independent Director

    • Tenure: 18.2yrs
    • Compensation: S$45.00k
  • Michael Grenville Gray (74yo)

    Non-Executive & Independent Director

    • Tenure: 13.2yrs
    • Compensation: S$45.00k
  • Alvin Lim (43yo)

    COO & Executive Director

    • Tenure: 1.3yrs

Company Information

Avi-Tech Electronics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avi-Tech Electronics Limited
  • Ticker: BKY
  • Exchange: SGX
  • Founded: 1981
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: S$70.984m
  • Shares outstanding: 171.05m
  • Website: https://www.avi-tech.com.sg

Number of Employees


Location

  • Avi-Tech Electronics Limited
  • 19A Serangoon North Avenue 5
  • Singapore
  • 554859
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKYSGX (Singapore Exchange)YesOrdinary SharesSGSGDJul 2007
3A3NDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007

Biography

Avi-Tech Electronics Limited provides burn-in, manufacturing and printed circuit board assembly, and engineering services for the semiconductor, electronics, life sciences, aviation, and other industries.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 12:46
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.