Fu Yu expected to generate robust dividend yield in FY17

SINGAPORE (Jan 6): RHB continues to keep its “buy” call on Fu Yu with a target price of 29 cents, while reiterating its view of the manufacturer and supplier of high-precision injection molds and plastic parts as an attractive privatisation or takeover candidate.

In an updated report on Tuesday, analyst Jarick Seet once again highlights the company for its improving core business, undemanding valuations and attractive dividend yield of 7.9% in FY16F.

He now expects the company to generate a dividend yield of 8.1% for FY17 given the likelihood of the company’s positive cash flow from operations increasing further in 4Q16, as well as its $100 million net cash hoard.

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