1 Tiny Company Set to Benefit From Tablets; It’s Not Apple Inc. (AAPL), Google Inc (GOOG) or Amazon.com, Inc. (AMZN)

The play

Wintek Corporation (TPE:2384) is an obvious way to play the ongoing tablet boom—which IDC forecasts to surpass total PC shipments by 2015—due to the fact that it has exposure to Google’s Nexus 7, Amazon.com, Inc. (NASDAQ:AMZN)’s Kindle, and possibly, the unconfirmed next-gen Apple Inc. (NASDAQ:AAPL) iPad Mini.

From a valuation standpoint, Wintek sports a price-to-book multiple of 0.8x and trades at a mere 0.3 times sales, despite a 9.8% growth in revenues last year. Fellow supplier Foxconn, which also trades on the Taiwan Stock Exchange, grew revenues by only 1.6% last year.

By comparison, Apple Inc. (NASDAQ:AAPL) (2.4), Amazon (2.0) and Google Inc (NASDAQ:GOOG) (5.4) trade at far more expensive top line multiples than Wintek, but it’s not just the valuation that’s attractive.

Wintek Corporation (TPE:2384)’s EBITDA is trending upwards, the company sports a manageable (total) debt-to-equity ratio of 1.12, and analysts agree that the stock is worth looking at. In terms of New Taiwan Dollars (NT), the most bullish analyst estimates that shares of Wintek can see a 35% upside from current levels, which would mark an appreciation almost on par with the stock’s book value parity.

Final thoughts

While it’s obviously more difficult to make a play on Wintek Corporation (TPE:2384) because it’s not traded on U.S. exchanges, the potential upside here is solid, particularly if Apple Inc. (NASDAQ:AAPL)’s rumored next-gen iPad Mini is on the supplier’s table. The presence of Amazon.com, Inc. (NASDAQ:AMZN) and Google Inc (NASDAQ:GOOG) solidifies Wintek’s outlook, and frankly, past growth is above its closest peer and the valuation is cheap. We’d recommend taking a longer look; continue reading here to learn more about Insider Monkey’s best market-beating strategy.

Disclosure: none