Vulnerable Revenue Base: In the midst of a global slow down in
consumption, demand for consumer products such as computer peripherals
and consumer electronics will see a lower take up rate.

Industry Consolidation Likely: Third party plastic injection moulding is a
relatively mature industry. Having among the lowest cost of production remains the key competency that every firm aspires to achieve. This naturally depends on optimal level in economies of scale. As such, industrial consolidation is the most likely outcome. Being a small player in market, Avaplas has a fair chance of being a potential target to be acquired.

Valuation:The company is expected to stay in the red for the next financial year.

Target Price 4 cents