Manufacturing Small Cap - CGS-CIMB Research 2019-05-15: Valuation Insights From Industry Peers

Manufacturing Small Cap - Fu Yu, Memtech International, Sunningdale Tech | SGinvestors.io FU YU CORPORATION LTD (SGX:F13) SUNNINGDALE TECH LTD (SGX:BHQ) MEMTECH INTERNATIONAL LTD (SGX:BOL)

Manufacturing Small Cap - Valuation Insights From Industry Peers




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
    1. introduce any major changes to the business,
    2. redeploy any of the fixed assets, or
    3. 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



Highlighted Companies


Fu Yu Corp Ltd


Memtech International


Sunningdale Tech Ltd






Willam TNG CFA CGS-CIMB Research | https://research.itradecimb.com/ 2019-05-15
SGX Stock Analyst Report HOLD MAINTAIN HOLD 0.200 SAME 0.200
HOLD MAINTAIN HOLD 1.380 SAME 1.380
HOLD MAINTAIN HOLD 1.350 SAME 1.350



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