Jubilee Industries started at Add by CGS-CIMB

A Singapore 10-dollar note Photo by Leslie Shaffer

CGS-CIMB started Jubilee Industries at Add with a S$0.051 target price.

“Jubilee is set to swing back into full-year positive net profit after two years of net losses post-restructuring,” CIMB said in a note dated Friday. That was after the company posted a net profit of S$800,000 for the first half of fiscal 2018, the note said.

”We expect earnings growth to come from two fronts —ECD and the mechanical business — buoyed by continued uptrend in demand for components and capacity expansion in its mechanical business,” the note said.

Jubilee’s business includes precision melding and design, fabrication and sale of plastic injection moles, with operations mainly in its Malaysia plant and its China plant, the note said, adding that key customers included Hewlett-Packard, Flextronics and Dyson.

The company is also expected to soon quadruple its plastic injection moulding capacity to 151 machines, while its deal to acquire HonFoong Plastic Industries for S$3.5 million will add 93 moulding machines in Indonesia, the note said.

The stock ended Monday up 13.51 percent at S$0.042.