FU YU CORPORATION LTD (SGX:F13)
SUNNINGDALE TECH LTD (SGX:BHQ)
MEMTECH INTERNATIONAL LTD (SGX:BOL)
Manufacturing Small Cap - Valuation Insights From Industry Peers
- MEMTECH INTERNATIONAL LTD (SGX:BOL)’s major shareholders in conjunction with Universal Global Technology Co. Ltd (UGT) are making an S$1.35 offer in cash to privatise the company.
- Universal Global Technology is wholly-owned by Universal Scientific Industrial Shanghai (601231 CH), which is one of the top 10 EMS companies globally.
- Based on Memtech International’s privatisation offer, the implied possible acquisition prices for FU YU CORPORATION LTD (SGX:F13) and SUNNINGDALE TECH LTD (SGX:BHQ) are illustrated in Figure1 in attached PDF report.
In the end, Memtech International (MTEC) went first
- Using Memtech International’s privatisation price as a guide, we worked out the possible privatisation or acquisition prices for Fu Yu and Sunningdale Tech.
- Fu Yu has frequently been named by market pundits as a possible M&A target as its founders have no family members to take over the business.
What is different
- We think Memtech International’s privatisation bid is different. We believe Memtech International is teaming up with Universal Scientific Industrial Shanghai (via Universal Global Technology) to grow the business further.
- Universal Scientific Industrial Shanghai is one of the top 10 global electronics manufacturing services (EMS) companies and in the offer statement (see Memtech International's announcements), the offeror intends for Memtech International to continue its existing business activities and there are currently no plans to
- introduce any major changes to the business,
- redeploy any of the fixed assets, or
- discontinue the employment of any of the existing employees of the Company or its subsidiaries, other than in the ordinary course of business.
Hold Fu Yu and Sunningdale Tech
- We currently have HOLD ratings on Fu Yu and Sunningdale Tech and we recommend investors accept the S$1.35 offer per share for Memtech International.
- See report: Memtech International - Take The S$1.35 Cash Offer.
Highlighted Companies
Fu Yu Corp Ltd
- HOLD, Target Price S$0.20.
- Fu Yu is a manufacturer and supplier of high-precision injection moulds and plastic parts in Asia with eight manufacturing plants in Singapore, Malaysia and China.
- See FU YU CORPORATION LTD (SGX:F13) | Fu Yu (SGX:F13) Share Price | Fu Yu (SGX:F13) Target Price | Fu Yu (SGX:F13) Analyst Reports | Fu Yu (SGX:F13) Corporate Actions | Fu Yu (SGX:F13) Announcements | Fu Yu (SGX:F13) Latest News.
Memtech International
- HOLD, Target Price S$1.35.
- Memtech International is a Singapore-based global components solution provider with three manufacturing sites in China: Dongguan, Kunshan and Nantong.
- See MEMTECH INTERNATIONAL LTD (SGX:BOL) | Memtech International (SGX:BOL) Share Price | Memtech International (SGX:BOL) Target Price | Memtech International (SGX:BOL) Analyst Reports | Memtech International (SGX:BOL) Corporate Actions | Memtech International (SGX:BOL) Announcements | Memtech International (SGX:BOL) Latest News.
Sunningdale Tech Ltd
- HOLD, Target Price S$1.38.
- Sunningdale Tech is a manufacturer of precision plastic components. The group provides one stop, turnkey plastic solutions.
- See SUNNINGDALE TECH LTD (SGX:BHQ) | Sunningdale Tech (SGX:BHQ) Share Price | Sunningdale Tech (SGX:BHQ) Target Price | Sunningdale Tech (SGX:BHQ) Analyst Reports | Sunningdale Tech (SGX:BHQ) Corporate Actions | Sunningdale Tech (SGX:BHQ) Announcements | Sunningdale Tech (SGX:BHQ) Latest News.
Willam TNG CFA
CGS-CIMB Research
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https://research.itradecimb.com/
2019-05-15
SGX Stock
Analyst Report
0.200
SAME
0.200
1.380
SAME
1.380
1.350
SAME
1.350
