Sunningdale Technology is one of 5 companies I mentioned in my post on " Thoughts on the market" .

Reasons for my pick :

1. decent profits for the past 3 years

2012 - S$9,562,000

2011 - S$16,700,000 (before impairment .. see note)

2010 - S$18,900,000

(Note : 2011 company registered a loss of S$11,420,000
due mainly to impairment charges of S$23,700,000 and currency loss of S$4,400,000.

Without the impairment charges n currency loss the company would have registered a profit of S$16,700,000.)

2. good profit trend in the last 3 quarters :

Jan - Mar '13 - S$2,313,000

April - June '13 - S#3,516,000

July to Sept '13 - S$3,796,000

Jan to Sept '13 - S$9,562,000.

(Note : the profits of the first 9 months of current financial year is almost equal to the whole of last year

implying a huge improvement over last year)

3. expect good dividend payout.

the dividend payout ratio range from 28% to 94% in years when they are profitable. Last year payout was exceptionally high

with a payout ratio of 94.5% which worked out to 1.2 cts per share giving a yield of 8.5% on current price of 14 cts.

a fairly good dividend can be expected this year as company has registered a profit of S$9.5 mil on it's 9 months result.

4. trading far below it's nta.

Nta 30.59 cts against current price of 14.1 cts as of date n time of posting.

5. massive restructuring

there is a massive restructuring going on in the company which i view positively and is likely to put the company into a

more competitive position. Will deal with this later.

Other reasons for my pick on Sunningdale Technology :

1.it's an actively managed company as can be seen from the various initiatives undertaken by the company recently.


2.initiatives to improve efficiency/productivity

a) consolidating their European operation from Sweden to Latvia - from high costs to lower costs.

b) operations in Southern China from 3 plants to 2 plants - from 3 expense points to 2 expense points.

c) consolidate the Singapore operations from 2 to 1. And selling off the other, with the UFE operations relocating

to the other plant in Singapore and the UFE operations to Johore. From 2 expense points to 1.


3. capital gain of S$5.43 mil through the sales of the operating plant in Singapore.

This gain should be reflected in 2014 results. Improve cashflow n reduce debts.


4.others :

a) new plant in Batam on schdule and will start mass production in 4Q 2013.

b) new plant in Latvia on track for mass production in 4Q 2013.

The capacity expansion is for a major Consumer/IT customer ... meaning that orders are quaranteed.

c) Tianjin plant set up for the launch of a major automotive program in 2014 is also on track.

Sunningdale Technology is one of 5 companies I mentioned in my post on " Thoughts on the market" .

Reasons for my pick :

1. decent profits for the past 3 years

2012 - S$9,562,000

2011 - S$16,700,000 (before impairment .. see note)

2010 - S$18,900,000

(Note : 2011 company registered a loss of S$11,420,000
due mainly to impairment charges of S$23,700,000 and currency loss of S$4,400,000.

Without the impairment charges n currency loss the company would have registered a profit of S$16,700,000.)

2. good profit trend in the last 3 quarters :

Jan - Mar '13 - S$2,313,000

April - June '13 - S#3,516,000

July to Sept '13 - S$3,796,000

Jan to Sept '13 - S$9,562,000.

(Note : the profits of the first 9 months of current financial year is almost equal to the whole of last year

implying a huge improvement over last year)

3. expect good dividend payout.

the dividend payout ratio range from 28% to 94% in years when they are profitable. Last year payout was exceptionally high

with a payout ratio of 94.5% which worked out to 1.2 cts per share giving a yield of 8.5% on current price of 14 cts.

a fairly good dividend can be expected this year as company has registered a profit of S$9.5 mil on it's 9 months result.

4. trading far below it's nta.

Nta 30.59 cts against current price of 14.1 cts as of date n time of posting.

5. massive restructuring

there is a massive restructuring going on in the company which i view positively and is likely to put the company into a

more competitive position. Will deal with this later.

Other reasons for my pick on Sunningdale Technology :

1.it's an actively managed company as can be seen from the various initiatives undertaken by the company recently.


2.initiatives to improve efficiency/productivity

a) consolidating their European operation from Sweden to Latvia - from high costs to lower costs.

b) operations in Southern China from 3 plants to 2 plants - from 3 expense points to 2 expense points.

c) consolidate the Singapore operations from 2 to 1. And selling off the other, with the UFE operations relocating

to the other plant in Singapore and the UFE operations to Johore. From 2 expense points to 1.


3. capital gain of S$5.43 mil through the sales of the operating plant in Singapore.

This gain should be reflected in 2014 results. Improve cashflow n reduce debts.


4.others :

a) new plant in Batam on schdule and will start mass production in 4Q 2013.

b) new plant in Latvia on track for mass production in 4Q 2013.

The capacity expansion is for a major Consumer/IT customer ... meaning that orders are quaranteed.

c) Tianjin plant set up for the launch of a major automotive program in 2014 is also on track.