Fischer Tech suffered a loss in FY12 due to the flood in Thailand which forced one of its factories to close. The group returned to the black in FY13, driven by its automotive segment. Its valuations are currently undemanding and earnings expansion could be in the cards.
Fischer Tech believes that the strategy for a more stable earnings profile involves a deepening of its auto business and becoming a strategic partner to its customers. There are plans to expand its capacity in China significantly, a move that could lead to earnings expansion over the next few years. Funding is unlikely to be an issue given its net cash position which allows it to take on some debt, if necessary.
Read more »