Memtech International is seeing a resurgence in business, following its diversification into the production of parts and components for the automotive industry. The company, which started out making keypads for mobile phones, posted an 11.3% rise in 1Q2015 earnings to US$1.2 million ($1.6 million) from a year ago. Revenue generated was up 14.7% to US$33.6 million, owing mainly to higher sales of automotive components and consumer electronic products. Since Feb 25,when Memtech reported that it had returned to profitability in FY2014, its share price has risen more than 50% to a 52-week high of 15.5 cents before falling back to the current 14 cents. Still, the stock trades at 0.67 times book value and 4.2 times current earnings, compared with 4.4 times book and 15.2 times earnings for Innovalues, a precision engineering firm that has also seen its business grow by leaps and bounds after it expanded into the production of automotive parts.
source: www.theedgemarkets.com
