Can AVI-Tech finally make it out of the red after three straight years of losses?

After it dropped its loss-making imaging segment.

Mainboard-listed AVI-Tech stands a chance of finally making a profit following three straight years of losses, after it decided to ditch its loss-making imaging and energy efficient product business.

CIMB states that AVI-Tech can return to the black in FY6/15 on back of the improving outlook for the burn-in services and engineering services business segments.

“AVIT is holding a very clean book with all necessary impairments for the discontinued businesses having been made. As at end-1QFY15, AVIT had $23.6m cash, forming c.83% of its current market cap, and minimal debt. It owns an office property with a carrying amount of S$10.7m based on depreciated historical cost. The office property was acquired in 1998 and has 44 years lease left. There would be a significant gain if AVIT monetises this asset, in view of Singapore’s land price appreciation over the past 16 years,” stated CIMB.