Amtek at 73cts still has upside?

Posted by albertlaw > 2014-03-18 18:58 | Report Abuse

Yes the price may consolidate from the current 73cts since the news was first announced it had crept from 54cts to 73cts from news of purchase of U.S firm by Amtek UBLISHED: MARCH 5, 4:05 AM SINGAPORE – Amtek Engineering plans to acquire United States-based Interplex Industries for as much as US$210 million (S$267 million) to create one of the world’s largest precision engineering services firms, the Singapore-listed company said yesterday. Interplex is a global leader in the design and manufacture of miniature precision engineered solutions for customised electronic applications. It serves industries including automotive, industrial/electrical, mobile devices, and more recently, medical original equipment manufacturers. In the six months to November, the company generated revenue of US$182.4 million. The enlarged entity will have total revenue of about US$1 billion annually from operations in 15 countries, where it employs 13,500 staff. The deal is expected to be completed in the first half of next year, subject to regulatory and shareholder approvals. The precision engineering industry in Singapore generates around S$35 billion in revenue each year and is a key area in the manufacturing sector here. Amtek currently has operations in several countries in the region including Singapore, Malaysia, Indonesia and China. By buying Interplex, it gains a foothold in the US, Mexico, Hungary and India. Amtek Chairman and Chief Executive Daniel Yeong said: “Interplex’s miniature precision engineered solutions, blue chip customer base and global footprint are highly complementary to Amtek.” The purchase price includes a base amount of US$165 million to be paid at the closing of the transaction, a deferred payment of US$11 million and earn-out payments of up to US$34 million that are based on the operating earnings of Interplex from fiscal 2014 to fiscal 2016. Before the after-market announcement yesterday, Amtek shares closed up 2.9 per cent at 54 cents each. WITH CHANNEL NEWSASIA

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Posted by albertlaw > 2014-03-20 09:50 | Report Abuse

Shares in Amtek India and parent Amtek Auto jumped about 6 percent each in early Mumbai trading as the former informed the bourses Tuesday it had completed the acquisition of Germany’s Kuepper Group it had announced in December. The Amtek Group is one of the world’s largest manufacturers of iron-cast auto components and the acquisition of the Kuepper Group, a supplier of machined castings with operations in central Europe and key clients such as BMW, Renault Nissan and Volkswagen, would serve as synergistic for the Indian company. Also read: Amtek India & Amtek Auto up 20%; Kuepper buyout completed In a previous successful acquisition, Amtek had early last year bought Neumayer Tekfor for an estimated 500 million euros. The Amtek Group has seen strong financial performance recently, helped by the Neumayer acqusition. In the December quarter, Amtek India’s revenues jumped 60 percent year-on-year to Rs 665 crore while operating profit surged 63 percent to Rs 204 crore. While Amtek Auto notched up profits of Rs 267 crore (up 55 percent) on revenues of Rs 898 crore (up 57 percent). “We are now very strong in Europe. About 45 percent of our revenues now come from outside India and a big chunk of that comes from Germany,” Amtek Auto Senior MD and CEO John Flintham told CNBC-TV18’s Latha Venkatesh and Sonia Shenoy in an interview. The Kuepper Group has revenues of about 170 million euros and operating profit margin of about 8 percent. “We paid about 50 million euros for the company, or about 3.5 times EBITDA,” Flintham said. Amtek’s immediate priority will be to work out synergies between Kuepper, which has five plants across Germany and Hungary, and its existing facilities in Germany, he added. The CEO added that post the acquisition, the group can be expected to clock consolidated full-year revenues of about Rs 15,000-16,000 crore. “[But] obviously the EBITDA [in the European businesses] is lower than the EBITDA in India. On balance, we will be looking somewhere in the region of 19-20 percent EBITDA margins before this financial year.” Amtek Auto shares have about doubled in the past five years while the Amtek India scrip has increased about five times on the back of a manifold increase in sales and net profits for both firms. Amtek India stock price On March 19, 2014, Amtek India closed at Rs 81.25, up Rs 3.75, or 4.84 percent. The 52-week high of the share was Rs 106.60 and the 52-week low was Rs 49.00. The company's trailing 12-month (TTM) EPS was at Rs 7.66 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 10.61. The latest book value of the company is Rs 80.41 per share. At current value, the price-to-book value of the company is 1.01.

Read more at: Amtek sees Rs 16000cr full-year sales post Kuepper buy - Moneycontrol.com

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