Stock Upgraded: Innovalues target price raise to 1.52

CIMB-GK Research said it has lifted its target price for Innovalues to 1.52 sgd per share from 1.18 previously on expectations of strong earnings going forward, with the company's Malaysian manufacturing facility running at full capacity. "Our recent Malaysian plant visit reinforced our positive view on Innovalues. The Malaysian plants represent 65 pct of group capacity, focusing mainly on office automation (OA) and automotive components," CIMB-GK said in a note to clients. "All three plants are operating close to full capacity on the back of seasonal demand and new customers and programmes," it added, "The Thailand and China plants are also busy with automotive and OA businesses, respectively. The Thai plant is operating at about 80 pct of capacity due to a slowdown in the HDD (hard disk drive) components business. The China facility, which focuses on OA and automotive, is running close to full capacity," the brokerage said. CIMB-GK expects Innovalues' net profit to rise from 10.1 mln sgd last year to 14.2 mln this year, to 18.4 mln next year and to 24.3 mln in 2008. At 10.42 am, Innovalues was up 0.05 sgd or 6.17 pct at 0.86 with 1.80 mln shares traded.