Hard disk parts maker Broadway appears cheap, but faces risks from legal dispute

SHARES of mainboard-listed Broadway Industrial Group : B69 0% have gained in recent months in spite of a scuppered deal, possibly thanks to decent growth. But investors should be aware that the company's cash pile is at risk of being diminished by a legal dispute.

Broadway, which makes actuator arms for the hard disk drive (HDD) industry, posted a 17.7 per cent growth in revenue to S$471.4 million for the year ended Dec 31, 2021, from S$400.7 million a year earlier. Net profit in the same period grew 8.2 per cent to S$15.3 million, from S$14.1 million.

Net cash flows from operating activities d…

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