Singapore Technology Manufacturing Stocks
AEM HOLDINGS LTD
AWX.SI
SUNNINGDALE TECH LTD
BHQ.SI
MEMTECH INTERNATIONAL LTD
BOL.SI
Tech Manufacturing Services - Unearthing The Laggards
- Seven small-cap tech manufacturing stocks under our coverage delivered average return of 162% in 2017.
- The seven stocks under our coverage are AEM, CEI, UMS, Memtech, Sunningdale Tech, Valuetronics and Jadason Enterprises. (See report: Tech Manufacturing Services - CIMB Research 2017-08-03: Expecting Good 2Q17 Results)
- Our top picks are AEM, Memtech and Sunningdale Tech.
- In this note, we identify five non-rated stocks with 2017 returns below the stocks under our coverage, and are net cash based on latest publicly-announced results.
Identifying the laggards
- In 2017, the seven small-cap tech manufacturing stocks under our coverage delivered average return of 162%.
- In this note, we highlight five non-rated with 2017 share price performance below the average return of the stocks under our coverage, and are net cash based on latest publicly-announced results. The non-rated stocks are:
- Avi-Tech Electronics Limited (+69.6%);
- Broadway Industrial Group (-34.2%);
- Fu Yu Corporation (+0.5%).
- InnoTek Holdings (+30.9%) and
- Manufacturing Integration Technology Ltd (+46.6%).
- Our top picks are AEM, Memtech and Sunningdale Tech.
AVI-TECH ELECTRONICS LIMITED (BKY.SI) Avi-Tech Share Price Avi-Tech Target Price Avi-Tech Analyst Reports Avi-Tech Corporate Actions Avi-Tech Announcements Avi-TechLatest News Avi-Tech Blog Articles
- Avi-Tech Electronics Limited (AVIT) offers burn-in and engineering services for customers in the semiconductor, electronics and life science industries. Its production/testing facilities are based in Singapore and its in-house burn-in test design capability helps reduce its capex needs.
- Autonomous driving/Internet of Things are seen as potential growth drivers by management.
- AVIT had a net cash balance sheet at end-Sep 2017. Dividend payout policy is 30%. AVIT trades at a FY6/17 P/E of 11.9x vs. regional peers’ average of 16.5x.
- See report: AVI-Tech Electronics Ltd - CIMB Research 2018-01-09: Powering Into The Future
BROADWAY INDUSTRIAL GROUP LTD (B69.SI) Broadway Industrial Group Share Price Broadway Industrial Group Target Price Broadway Industrial Group Analyst Reports Broadway Industrial Group Corporate Actions Broadway Industrial Group Announcements Broadway Industrial GroupLatest News Broadway Industrial Group Blog Articles
- Broadway Industrial Group is currently a key manufacturer of actuator arms and related assembled parts for hard disk drives (HDD). In FY16, Broadway disposed two of its three main businesses, namely, its foam plastics solutions and flow control devices businesses.
- In its FY16 annual report, Broadway highlighted that it will continue to explore new opportunities to further unlock shareholder value.
- See report: Broadway Industrial Group Ltd - CIMB Research 2018-01-09: Exploring Opportunities To Unlock Shareholder Value
FU YU CORPORATION LTD (F13.SI) Fu Yu Share Price Fu Yu Target Price Fu Yu Analyst Reports Fu Yu Corporate Actions Fu Yu Announcements Fu YuLatest News Fu Yu Blog Articles
- Fu Yu Corporation is an established plastic injection moulding company. Key industries served by Fu Yu include printing and imaging, networking and communications, consumer, medical, automotive and power tools.
- The company has a net cash balance sheet at end-Sep 2017 and dividend payout policy of at least 50% of net profit.
- See report: Fu Yu Corp Ltd - CIMB Research 2018-01-09: Plastic Injection Specialist
INNOTEK LIMITED (M14.SI) InnoTek Share Price InnoTek Target Price InnoTek Analyst Reports InnoTek Corporate Actions InnoTek Announcements InnoTekLatest News InnoTek Blog Articles
- InnoTek Holdings is a precision metal components manufacturer serving the consumer electronics, office automation and automotive industries. Its stamped components are used in printers and copiers, TVs and cars. Its end-customers include Sony, Canon, Ricoh, Continental, Imasen, Kiekert, Kyocera, Konka, Innolux and Wistron.
- Restructuring efforts over the past few years and a change in management has led to return to positive net profit) since 2Q16.
- See report: Innotek Limited - CIMB Research 2018-01-09: Restructuring To Stay Ahead
MFG INTEGRATION TECHNOLOGY LTD (M11.SI) Manufacturing Integration Technology Share Price Manufacturing Integration Technology Target Price Manufacturing Integration Technology Analyst Reports Manufacturing Integration Technology Corporate Actions Manufacturing Integration Technology Announcements Manufacturing Integration TechnologyLatest News Manufacturing Integration Technology Blog Articles
- Manufacturing Integration Technology Ltd (MIT) is a capital goods supplier, primarily serving the semiconductor industry. Management believes that the company will benefit from the strong outlook for the global semiconductor industry. MIT has been announcing new order wins in the past 12 months.
- MIT had a net cash balance sheet at end-Jun 2017 and has adopted a 25% dividend payout policy.
- See report: Manufacturing Integration Technology Ltd - CIMB Research 2018-01-09: Winning Orders Again
Highlighted Companies
AEM HOLDINGS LTD (AWX.SI) AEM Holdings Share Price AEM Holdings Target Price AEM Holdings Analyst Reports AEM Holdings Corporate Actions AEM Holdings Announcements AEM HoldingsLatest News AEM Holdings Blog Articles
- Rating: ADD, Target Price: S$4.55
- AEM is currently the sole supplier of its key customer. AEM forecasts FY17F sales and pretax profit of at least S$215.0m and S$32.0m, respectively.
MEMTECH INTERNATIONAL LTD (BOL.SI) Memtech International Share Price Memtech International Target Price Memtech International Analyst Reports Memtech International Corporate Actions Memtech International Announcements Memtech InternationalLatest News Memtech International Blog Articles
- Rating: ADD, Target Price: S$1.33
- Memtech International (MTEC) continues to see potential in its automotive business given the rise of opportunities with domestic auto manufacturers in China.
SUNNINGDALE TECH LTD (BHQ.SI) Sunningdale Tech Share Price Sunningdale Tech Target Price Sunningdale Tech Analyst Reports Sunningdale Tech Corporate Actions Sunningdale Tech Announcements Sunningdale TechLatest News Sunningdale Tech Blog Articles
- Rating: ADD, Target Price: S$2.79
- Sunningdale Tech has finally seen the results of its cost reduction initiatives. The 9M17 gross margin rose to 15.0%. We believe margins will continue to improve, leading to a hike in our profit forecasts.
William TNG CFA
CIMB Research
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http://research.itradecimb.com/
2018-01-09
CIMB Research
SGX Stock
Analyst Report
4.550
Same
4.550
2.790
Same
2.790
1.330
Same
1.330
