Brokers' take

Jadason Enterprises Ltd | Add (Initiation) July 3 close: S$0.09 Target price: S$0.17 CIMB Research, June 30

JADASON has firmly returned to the black since Q3 2016. Key factors aiding the turnaround were right-sizing its workforce, improving productivity, higher use of automation and a large S$12.9 million impairment on its production equipment in FY 2015.

We believe Jadason is headed for a strong earnings recovery over 2017-18. This is likely to be driven by new orders from its customers, in particular, customer A (which cannot be named due to non-disclosure agreements).