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Sunning Tech
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bllue911
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04-Sep-2014 09:59
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Low net profit for FEL is because its owned by private equity and they usually financed it by leverages/debts, They prolly maximize the debt amounts so that FEL can self finance with its own operations. If when debt free, the owners will use the company to get more loans to pay themselves more cash. also, they might have huge depreciation expenses due to investments last few years, but assets last much longer. Looking at Ebitda is more accurate to understand the pricing and free cashflow. at 4.7x ebitda, its very cheap. based on my experience.
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woonie
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03-Sep-2014 19:51
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good things come to those who wait. but I hope not for long AL, the beta HAS to go up when the rubber eventually meets the road becos time and price go hand in hand... |
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AddLuck
Veteran |
03-Sep-2014 19:13
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Which means I wait again......
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woonie
Senior |
03-Sep-2014 16:59
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I should have recognised the block as the familar sign of an impending deal. Our talk about M& A has happened. If anything, I dun think this will be the last one. When Facebook aquired Instagram, WhatsApp and Oculus, the critics too had their field days each time. Today FB is at its all time high. SunningDale' s bosses are oldhands at the game, the analysts and the market will soon recognise that. This acquisition will add liquidity, bringing it closer to the radar screens of the big global investors and institutions where size matters. It is a long term commitment, where we are at now is the beginning of an unfolding bull trend that still has a long way to go... see you there.
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AddLuck
Veteran |
03-Sep-2014 13:39
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Really????.....I no need to wait further????
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WinningStock
Senior |
03-Sep-2014 12:49
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Sunningdale ..price ...ready to take-off.
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Jackpot2010
Master |
03-Sep-2014 12:28
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Ya, they need to get a " creative" analysts spin a " strong buy" story, otherwise the numbers don' t look good or convincing enough (IMO). Another comparision of this target (FEL) to FUYU, same plastics sector below:- Last FY FUYU' s revenue $238m & NPAT $8.7m vs FEL' s revenue $168m & NP $4.2m. Mkt cap of FUYU only S$70m vs acquisition cost (FEL) $110.8m. How come no trading halt despite this acquisition at S$110.8m = 63% of Sunningdale' s mkt cap of $176m (i.e. very significant). Seems very hasty. Is seller related to Koh Boon Hwee or some other insiders? KBH has lost his midas touch ever since the dot.com bubble bust (IMO). DYODD. I' m also vested.
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AddLuck
Veteran |
03-Sep-2014 11:51
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Haha......everybody same mindset......Sunningdale is good buy and value for money.....just like me....then everybody keep share warm warm and wait. Problem is everybody KEEP and WAIT and WAIT and WAIT..........see the big problem???? Good bluechip stocks can keep and wait and share px appreciate over time due to good business, but electronics???.......they come and go like nobody' s business....a very risky industry and very susceptible to swing of economy wellbeing.......... am still waiting!!! lol
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bllue911
Member |
03-Sep-2014 11:37
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i think its cos due to early morning annc. need some time for analysts and mkt to understand whether it is a good deal. at the same time, good time to collect from contra traders on the ' sell on news' mentality. no big sellers so its a good sign. ride on to 30+ cents!
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Jackpot2010
Master |
03-Sep-2014 10:59
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Share price hv not reacted after news of acquisition, @ 23c (11am). Why? On surface it sounds " good" but IMO it' s another expensive buy, same as its previous purchase of Chi Wo Plastics (HK) that resulted in impairment/write-off of goodwill in future yrs. Negatives:-
DYODD. I' m also vested.
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bllue911
Member |
03-Sep-2014 10:17
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Unusual but shows CS quite confident in company' s share price. ---------------------------------------------------- SPECIFIC MANDATE FOR SHARE ISSUE The Company has exhausted its existing general mandate to issue Shares following the previous share placements in 8 July 2014. At the EGM, the Company will also be seeking a specific mandate to issue 2,771,618 new Shares to Credit Suisse (Singapore) Limited (" Credit Suisse" ) as part of Credit Suisse' s remuneration for acting as financial advisor to the Company on the Proposed Acquisition, which is also subject to receipt of relevant regulatory approvals. Further information on this issue will be set out in the Circular. |
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bllue911
Member |
03-Sep-2014 10:12
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NTA still about the same. But EPS jumps to 2.35 cents per share. Quite good bargaining. That means now trading only at 10x PE (historical). If assuming profit trends this year continues upwards, only trading at 7-8x PE. Cheap. -------------------------------------------------------- 6.2 Effect on NTA per Share On the bases and assumptions set out above, the financial effect of the Proposed Acquisition on the NTA per Share is as follows: As at 31 December 2013 NTA per Share(1) Before adjusting for the Proposed Acquisition 31.32 cents After adjusting for the Proposed Acquisition 30.02 cents Notes: (1) Based on the number of issued Shares in the Company as at 31 December 2013 being 764,931,393. Effect on EPS On the bases and assumptions set out above, the financial effect of the Proposed Acquisition on the EPS for the financial year ended 31 December 2013 is as follows: For the financial year ended 31 December 2013 EPS(2) Before adjusting for the Proposed Acquisition 1.80 cents After adjusting for the Proposed Acquisition 2.35 cents
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Kyoto2008
Elite |
03-Sep-2014 09:59
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Sounds good. |
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bllue911
Member |
03-Sep-2014 09:48
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acquisition happens. -------------------------------- SUNNINGDALE TECH ANNOUNCES PROPOSED 100% ACQUISITION OF ANCHORAGE SINGAPORE HOLDINGS PTE LTD Creates one of the largest precision plastics engineering companies with combined revenue of S$636 million1 Highly complementary in three major business segments: Automotive, Consumer/IT and Healthcare Enterprise value of US$80 million for the Target Group Transaction is EPS accretive2 SINGAPORE &ndash 3 September 2014 &ndash Singapore Exchange Mainboard-listed Sunningdale Tech Ltd (&ldquo Sunningdale Tech&rdquo or the &ldquo Group&rdquo ) announced today the proposed 100% acquisition of all of the issued and paid-up shares of Anchorage Singapore Holdings Pte Ltd (&ldquo ASH&rdquo ), the ultimate holding company of First Engineering Limited (&ldquo FEL&rdquo ). FEL is a market leading manufacturer of precision plastic moulds and engineering components, for the automotive, consumer/IT and healthcare (medical device) business segments. FEL serves a blue chip customer base from its manufacturing and sales locations across five countries. In the preceding twelve month period ending 31 July 2014, FEL generated revenue and EBITDA of US$134 million3 and US$17.1 million, respectively. The proposed acquisition will create one of the largest precision plastics engineering companies with combined revenue of S$636 million4 and manufacturing operations and sales offices spanning across nine countries. The acquisition of FEL is strategic to the Group, and will expand its customer base and widen the Group&rsquo s product mix offering. The proposed acquisition will further strengthen the Group&rsquo s existing footprint, while providing it immediate access to the attractive Indian market. Whilst Sunningdale Tech and FEL have complementary businesses in the three major business segments, there is minimal overlap at the component level, providing further strategic benefits. The combination of Sunningdale Tech and FEL will expand the Group&rsquo s scale and footprint, also providing an opportunity to optimize resources in operations to achieve higher efficiencies. &ldquo We are very excited about this strategic transaction. It is a major milestone for Sunningdale Tech because First Engineering is highly complementary to our vision to be one of the global leading high precision plastic companies. This transaction will not only expand our Group&rsquo s blue chip customer base and widen our product mix offering, but also further strengthen our existing footprint and give us immediate access to the Indian market. Last but not least, the combined talent from both businesses will create one of the largest precision plastic companies in Asia, and put us on a new higher level.&rdquo , quoted by Khoo Boo Hor, the Chief Executive Officer of Sunningdale Tech. &ldquo The combined strength of these two uniquely complementary organisations will create a highly diverse and technologically advanced industry leading player with an unparalleled global footprint. The combination of the two businesses also helps return the focus to Singapore as the global centre of specialty engineered manufacturing &ndash with us as the clearly distinguished global leader. We are very optimistic about our future together.&rdquo , quoted by Mr Brian Smith, the Chief Executive Officer of First Engineering. The enterprise value of FEL is US$80 million. The proposed acquisition will be funded by Sunningdale Tech through a combination of existing cash and new borrowings. Closing is expected to take place in Q4 FY2014, with requisite approval required from Sunningdale Tech&rsquo s shareholders. Credit Suisse (Singapore) Limited is acting as the sole financial advisor to Sunningdale Tech. Rippledot Capital Advisers Pte. Ltd. is acting as the sole financial advisor to the vendors of the ASH shares. Additional information on Sunningdale Tech&rsquo s acquisition of FEL can be found in Sunningdale Tech&rsquo s Investor presentation on the acquisition. |
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saturn80
Member |
03-Sep-2014 09:10
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SUNNINGDALE TECH ANNOUNCES PROPOSED 100% ACQUISITION OF ANCHORAGE SINGAPORE HOLDINGS PTE LTD |
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woonie
Senior |
03-Sep-2014 00:45
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The idea is that next year will be better than this year as Morgan Stanley is bullish that the trend will be expanding over the next few years. This leg up is the 7th longest since the 1800s according to research reports and should continue effortlessly from the new highs, but whether I think it stops at 2016 or MS' s 2020 that is purely an irrelevant intellectual exercise. Interesting that you should ask. |
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ytoh1688
Veteran |
03-Sep-2014 00:08
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2020?
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woonie
Senior |
02-Sep-2014 22:50
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This is the 7th longest rally so far.. watch the upsides unfold into 2015. Morgan Stanley just said that S& P may near 3,000 by 2020.. Way to go guys! |
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WinningStock
Senior |
02-Sep-2014 12:28
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Heavy lunch..
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bllue911
Member |
02-Sep-2014 11:22
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No problem. Might be fake wall also. Later I makan the " wall" for lunch.. :)
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