FY15 core earnings of MYR108.5m (+67.4% YoY) trumped expectations owing to its strong 4QFY15 showing as sales momentum across all its export markets picked up better than expected. Maintain BUY with our TP upgraded to MYR8.93 (from MYR8.36, 39% upside). Dividend came in within our expectations with FY15 DPS totalling 20.0 sen as management did not declare any payout for 4QFY15.

Results review. FY15 (Jun) revenue reached MYR1.39bn (+7.6% YoY), boosted by improved utilisation and a favourable forex environment as the USD averaged MYR3.46 in FY15 vs MYR3.24 in FY14. EBITDAimproved 22.7% YoY as margin expanded 320bps to 25.8%. All in, core earnings jumped 67.4% YoY to MYR108.5m, trumping both our/consensus expectations at 108.0%/108.7% of the respective full-year estimates. We attribute this to better-than-expected sales momentum in 4QFY15. Notably, 4QFY15 revenue of MYR372.8m and core earnings of MYR34.3m (vis-à-vis our previous guidance of MYR28m-33m) were higher both YoY and QoQ, as sales to all three core regions ie Europe, the US and Asia all showed encouraging improvements of 2-24%.

FY15 DPS of 20.0 sen. Dividend, meanwhile, came in within our expectations with FY15 DPS totalling 20.0 sen (FY14: 15.0 sen) as management did not declare any payout for 4QFY15. This implies alower payout ratio of 35.7% (FY14: 54.6%) as management looks to conserve cash to meet its capex requirements, which we are forecasting at MYR200m pa for FY16-18. Net cash balance closed at MYR58.4m (or MYR0.28 per share) as of Jun 2015 with 11m treasury shares held.

Forecasts revision. We continue to expect FY16-18 sales momentum to be driven by its smartphone and auto segments (which we estimate to make up a combined 60-65% of its FY15 sales), leveraging on new products launches and new design wins by its direct customers. We upgrade our FY16-17F EPS by 6.8-7.0% as we updated our model following the release of its full-year results. We also take the opportunity to introduce our FY18 estimates. Key risks are: i) the strengthening of the MYR against the USD, ii) higher raw material costs, and iii) a slowdown in the global semiconductor market.

Maintain BUY. We revise our TP to MYR8.93 (from MYR8.36) based on an unchanged 15x 2016 P/E following our earnings revision. Given the appealing upside of close to 40%, we reiterate our BUY call.