SHAW Analyst Comments: Autron out of the blocks20/08/03 By:...

SHAW Analyst Comments: Autron out of the blocks
20/08/03 By: Brent Mitchell

Price Movement

The Autron Corporation Limited (AAT) share price rose 10% to $0.36 yesterday, following a rise to S$0.30 (A$0.265) in Singapore, with volume of 37m. We believe this is due to a combination of reasons, including:

* Expectations of a strong profit recovery, with Singapore brokers suggesting a profit range (including one-offs) for 03 & 04 of A$12 – 14m (1.8 – 2.1¢) & A$15.5 – 17m (2.3 – 2.6¢) and a dividend of 0.5 – 1.0¢.

* Improved sentiment on NASDAQ & the Singapore Stock Exchange.

* Positive outlook on China post SARS & WTO & for forward electronics demand.

Outlook:

With an improving outlook for its industry, release of the FY result & dividend announcement, there could be further price recovery. However, we caution that sentiment is linked to the technology sector & the Singapore market and liquidity.