Provident Equity Research Announces Investment Opinion on Alpha Pro Tech Ltd. PHOENIX--(Business Wire)
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18:58 ET PHOENIX--(Business Wire)--Oct 29, 2003--
Provident Equity Research (PER), an independent equity
research company, has initiated coverage of Alpha Pro Tech Ltd.
(NASDAQ: APT.A) with a Buy rating. Alpha Pro Tech Ltd. (APT) develops,
manufactures and markets disposable protective apparel and consumer
products for the cleanroom, medical, dental, pet, food service and
industrial safety markets. The company operates through three
segments: apparel, mask & shield and extended care. Their products are
classified into four groups: (i) disposable protective apparel,
consisting of shoecovers, headcovers, gowns, coveralls and labcoats;
(ii) infection control products consisting of face masks and shields;
(iii) extended care products consisting of mattress overlays,
wheelchair covers, geriatric chair surfaces, operating room table
surfaces and pediatric surfaces; and (iv) consumer products consisting
of pet bedding and toys.
PER's Buy rating is based on the following:
-- We believe that APT will earn revenues and net income of
approximately $25.8 million and $3.1 million, respectively,
this year. Results for 2004 are much more difficult to
predict, as much depends on the company's continued execution
in the pharmaceutical industry, as well as SARS.
-- We have initially valued APT at approximately $58.2 million or
$2.50/share. Our basis for this valuation comes from DFCFF
analysis, an EPS CAGR of 51.5% over the past four years
(1998-2002) and a P/E ratio of 27.8 times our $2.50/share
estimate for 2004.
-- Industry growth is highly dependent on employment growth
(which has yet to see much improvement this year), as more
personnel would increase the unit demand for the company's
disposable protective apparel.
-- We believe that over the next two years health care
organizations may increase the use of the company's N-95 masks
due to the heightened sensitivity (perhaps even a mandate for
the use of N-95 masks) caused by SARS. However, at this time,
it appears as though SARS-related orders have dropped
significantly.
-- In conjunction with its distributors, the company's larger
direct sales force has made excellent initial advances within
the pharmaceutical clean room industry.
Enrollment fees for PER's Research Program range between
$7-$15,000. The fees were paid for by the company. Please see
additional disclosures at www.providentresearch.com or on the research
report.
CONTACT: Provident Equity Research
Jim Gentrup, CFA, 480-635-8325
SOURCE: Provident Equity Research |
