Investment Highlights

NRA are initiating coverage on Ntegrator International Ltd (“Ntegrator”) with a HOLD recommendation and a target price of $0.034. This is based on a 6.4x FY08F P/E multiple.

Cashflow management a critical concern. NRA are concerned about Ntegrator’s cashflow management and its ability to meet working capital needs. Its cash position in its balance sheet has dropped to about $1.4m as of 1H08. Ntegrator has also been generating negative operating cash flows over the last few years. Trade receivables showed a noticeable increase. This is in part due to its deferred payment structure with its customers, which can be as long as 2 to 5 years and are secured with letters of credit from banks.