Memtech Intl   

Memtech Intl - Strong Turnaround Gem

Looks like a retracement coming as it run up quite a lot last few days..   

 

Sure or not?

Sgvale      ( Date: 08-Mar-2018 11:14) Posted: --- Post Removed by User ---

 

really 1.75

Sgvale      ( Date: 07-Mar-2018 16:51) Posted: --- Post Removed by User ---

 

CIMB new target $1.76

 

HVRRVH eh i created another thread under the Memtech ticker. This thread dunno why when click stocks then the memtech then click forum it doesnt show leh.

 

 

Here' s why UOB Kay Hian likes this under-appreciated precision engineering gem

Source:  TheEdge Markets     |     Publish date:  Tue, 25 Apr 2017, 03:05 PM     |       > > Read article in News website  SINGAPORE (April 25): UOB Kay Hian is initiating coverage on components solution provider Memtech International with a " buy" and a target price of $1.05. " Companies operating in the precision engineering space experienced a sector re-rating over the last few months, driven by stronger 2H16 results and M& A interest," says UOB analyst Nicholas Leow in a retail report on Tuesday. Memtech, however, remains of the sector laggards. Calling it an " under-appreciated gem" , Leow says Memtech' s strong balance sheet, consistent dividend track record, and potentially strong 2017 performance could mean a bigger dividend for shareholders this year. According to Leow, Memtech could potentially pay a dividend of 3.5 cents in 2017, translating into a 4.4% yield - " with possibility of more" . The company has an official dividend policy of paying out 30% of earnings, but has paid out closer to 40% of core earnings over the last two financial years, Leow says. In addition, Memtech has not missed a dividend payment over the last decade. While results in first half of last year were slowed by a delay in production for the Beats by Dre headphones, the analyst expects a year-on-year turnaround in 1H17. " We expect Memtech to sustain its earnings momentum from 2H16 into 2017, driven by new project wins and larger orders from existing automotive customers," says Leow. According to Leow, Memtech is trading at a " compelling" FY17F PE of 8.6x. " In a sanity check, Memtech' s FY17F P/B multiple is a meagre 0.7x with an expected FY17 ROE of 8.2%," says Leow. " We do not think that Memtech deserves to be trading at such a substantial discount to its peers." In addition, Leow opines that Memtech could be a potential M& A target, which would likely see further upside to its target price. " M& A remains a distinct possibility given Memtech' s large exposure to the automotive sector, strong balance sheet, good operating cash flow, clean capital structure and 50% of the shares held by management and insiders," says Leow. As at 3pm, shares of Memtech International are trading 5 cents higher at 84 cents.

 

this one not tech lah, its just manufacturing lah :D

SmallSmall      ( Date: 26-Apr-2017 11:58) Posted: Trending towards $1 soon. The techs are on a vengence after years of neglect

 

I am still here lah, Lim and tan plus uobkayhian do coverage in the newspaper some more
Congrats

 

Trending towards $1 soon. The techs are on a vengence after years of neglect

 

I am having monologue here😂
But congrats to those vested, huat ah!!!

 

With the recent sales of 2 parcel of lands in China, the upward momentum continue and inching toward NAV of slightly above $1. Feeling rather comfortable with this one now. Let' s see what happen after closer to and after xd. 

 

Yes I am in 2 minds now. The volume is healthy and price action wise, all the selling seems to be absolved by the buyers easily. However, i am not sure how much the price will correct after xd. Last time round it corrected quite heavily and luckily I didn' t have to liquidate it. Shall monitor and assess going forward. Good and sustainable dividend should make me continue to stay vested. 

bluekelah      ( Date: 21-Apr-2017 18:46) Posted: Got analyst coverage boost it, I am second round holder now in at 63c average 100lots, Tesla they make only 40 per car for the air con dials not much. China auto market downturn now quite jialat, think that side will suffer but beats side new contract terms should still be profitable. Selling soon when hit NAV. HVRRVH      ( Date: 20-Apr-2017 14:39) Posted: Tesla link and expectation finally realising slowly? The stock price move leap and bounce with heavy volume in the past week. I am happily vested for close to 2 years with SRS fund. It' s a good stock with decent dividend even when the earning took a beating 2Q back, as the company' s balance sheet is sound and cash holding is strong.

 

Got analyst coverage boost it, I am second round holder now in at 63c average 100lots, Tesla they make only 40 per car for the air con dials not much. China auto market downturn now quite jialat, think that side will suffer but beats side new contract terms should still be profitable. Selling soon when hit NAV.

HVRRVH      ( Date: 20-Apr-2017 14:39) Posted: Tesla link and expectation finally realising slowly? The stock price move leap and bounce with heavy volume in the past week. I am happily vested for close to 2 years with SRS fund. It' s a good stock with decent dividend even when the earning took a beating 2Q back, as the company' s balance sheet is sound and cash holding is strong.

 

Tesla link and expectation finally realising slowly? The stock price move leap and bounce with heavy volume in the past week. I am happily vested for close to 2 years with SRS fund. It' s a good stock with decent dividend even when the earning took a beating 2Q back, as the company' s balance sheet is sound and cash holding is strong. 

 

The Edge Market today published an article on this stock and quoted OCBC' s ' unchanged' fair value of 48 cents but the latest fair value by OCBC before today' s article was 68 cents sometime in June. Is there a typo by The Edge Market? Article as follows: 

The Call
China&rsquo s car sales boost is positive for Memtech
By Michelle Zhu / theedgemarkets.com.sg   | September 13, 2016 : 12:37 PM MYT    
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Translated by Google Translator: 
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SINGAPORE (Sept 13): OCBC Investment Research is maintaining its &ldquo hold&rdquo call on Memtech International with an unchanged fair value estimate of 48 cents.

Memtech is a components solutions provider for the mobile phone, IT equipment and automotive industries.

Although Memtech&rsquo s automobile segment stands to see revenue upside from higher China passenger car sales,   its consumer electronics and telecommunications segments faces challenges.

&ldquo We note that Memtech caters to suppliers serving major consumer markets that are subject to global economic health, especially that within the US and China,&rdquo says lead analyst Deborah Ong in a Monday report, adding that the IMF forecast for global and Chinese growth currently stands at 2.2% and 6.6% respectively.

Despite a lack of optimism toward the group&rsquo s consumer electronics and telecommunications markets, she highlights how the China Association of Automobile Manufacturers (CAAM) reported a 26.3% year-on-year rise in China&rsquo s passenger car sales in August, halting the consecutive month-on-month decline for the preceding three months.

This may translate to higher revenue for Memtech given that roughly 50% of the automobile parts Memtech produces end up in cars sold in China, according to OCBC&rsquo s estimates.

Another 25% each go into cars exported to the US and Europe.

While the European Automobile Manufacturers Association reported higher European passenger car registrations by 6.9% and 9.4% year-on-year in June and 1H16 respectively, Autodata reflects that US passenger car sales fell 12.6% in Aug and were down 8.4% year-on-year for Jan-Aug.

OCBC forecasts about 7% growth for Memtech&rsquo s automobile segment&rsquo s FY16 revenue after taking the month-on-month increase in Chinese sales and decline in US sales into consideration.

Ong believes China&rsquo s subsequent passenger car sales figures are likely to be &ldquo more muted&rdquo in comparison against a higher base of sales last year.

Nonetheless, the analyst finds it &ldquo reassuring&rdquo that the decline has halted, and suggests this could be attributed to time pressure stemming from the expiry of China&rsquo s tax cut policy at the end of this year.

&ldquo Considering the significance of the automobile segment in China&rsquo s economy, we find it possible that the government will renew the tax cut, or introduce another form of tax at the end of the year,&rdquo comments Ong.

CAAM&rsquo s deputy secretary-general, Shi Jianhua, has stated that over 70% of cars sold in China qualify for the tax cut presently offered by China.

As at 11:56am, shares of Memtech are trading 0.83% higher at 60.5 cents.

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Memtech International  |  PDF

Delayed by Beats expect stronger 2H16

MTEC SP  /  M26.SI  |  ADD - Maintained  |  S$0.69  tp:S$0.86▼   Mkt.Cap:US$72.43m  | Avg.Daily Vol:US$0.05m  | Free Float:50.00%  Tech Manufacturing Services  Author(s):William TNG, CFA  +65 6210 8676,  Yi Sin NGOH

■     MTEC reported 1Q16 sales and core net profit below our/consensus FY16 estimates at 21% and 6%/7%, respectively. We expect a stronger 2H16.   ■     The main culprit was production delay for the Beats headband.  ■     Post 1Q16, we could see a sales recovery but lower gross margins, which leads to our 8.6-8.7% cut in FY16-17F EPS. ■     We maintain our Add recommendation, with a lower TP of S$0.86 based on a CY17F P/E of 9x. The stock still offers attractive FY16-18F dividend yields of 4.5-6%.

1Q16 disappointed by Beats  1Q16 sales of US$33.2m was slightly below our FY16 forecast, primarily due to a delay for the Beats headband project, which led to zero sales contribution in 1Q16 however, production did commence in 2Q16. 1Q16 gross margin also suffered from increased price competition and a lack of economies of scale, falling to 15.9%, vs 17.7% in 1Q15. Consequently, 1Q16 net profit fell 53% to US$0.6m, which formed only 6% of our full-year forecast.  Eyes on Tesla for automotive growth  We expect MTEC&rsquo s major AU customers such as Kostal and Magna to contribute stable sales, with sales growth to come from Tesla and other smaller AU customers such as Continental and its newly acquired customer, Faurecia, as they ramp up in volume. All in all, we forecast FY16-18 top-line growth of 20% for the AU segment.       Temporary hiccup in consumer electronics  Apart from the existing Beats headband project, there could be two more Beats projects in the pipeline on a different headset component in 2H16. Another sales engine for consumer electronics (CE) could be the set-top box by Roku, with an estimated 35-40% growth in FY16. More notably, MTEC&rsquo s key CE customer, Amazon, reported a 28% jump in its 1Q16 revenue, helped by higher sales of both the Kindle and Fire tablet. Its latest product, Amazon Kindle Oasis, could translate into greater orders for MTEC.  Lower FY16-17 sales forecasts and margins  As a result of the Beats project delay, we adjust downwards our FY16-17 sales growth forecast. We also lower our CE margin assumptions, as Apple (owner of Beats Electronics) had demanded cost reduction from all its suppliers that led to a decrease in selling price for the headband. Therefore, our FY16-17 EPS projections have dropped by 8.6-8.7%.  Maintain Add with slightly lower target price of S$0.86  Despite the blip in CE sales, we think the earnings outlook for MTEC remains positive (3-year forward EPS CAGR of 13.8%). We maintain our Add call with target price of S$0.86 based on a CY17F P/E of 9x (industry average). MTEC remains in a net cash position, with improved free cash flow of US$3.6m (1Q15: US$2.3m) due to better working capital management. The stock&rsquo s dividend yield is attractive at an average 5.3% for FY16-18F. The key risk, in our view, is further order push-back.        Previous [  Memtech International  ] reports...  26/2/16  Co.Note  Benefiting from enlarged customer base  (ADD, S$0.60  tp:S$0.94▼ ) 12/11/15  Co.Note  Year-end shopping to drive 4Q  (ADD, S$0.13  tp:S$0.20▲ ) 28/9/15  Better sales growth for consumer electronics  (ADD, S$0.12  tp:S$0.17)

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Getting nearer to XD date! I have a good feeling about this and price may move up further before XD. How will the price move after XD? Most likely will come down but if stay at current level or even 70 cents I will be happy. It seems there are accumulation at 72-74 range for the past 2 to 3 weeks. 2016Q1 results could be released this Friday and if the results are good, maybe next Q can anticipate interim dividend! 

 

Hit OCBC's TP. After assessing the stock I decided to hold. Confidence in its new dividend policy.

 

thanks for sharing. missed the media coverage and report completely. would add to the existing list of tech/industrial manufacturers to monitor. 

1oopls      ( Date: 03-Apr-2016 17:44) Posted: Memtech International: Tesla To Unveil Model 3  We previously highlighted Memtech as a supplier of US$30 to US$40 worth of components per car to Tesla, for all of Tesla&rsquo s models.  Later today, Tesla will unveil its mass market lineup, Model 3, which retails at US$35,000 &ndash around half the price of the Model S sedan.  We note that the company moved online preorders an hour earlier amid signs of heavy demand.  Tesla&rsquo s delivery target stands at around 80K &ndash 90K for 2016, which would bring their cumulative figure to 187K &ndash 197K cars. Its aggressive 2020 target of 500K cars annually depends on the success of Model 3 as a mainstream luxury sedan. The company expects to start Model 3 production in late 2017, though its history of delays casts doubt on the projection.  We continue to monitor Tesla as a potentially significant revenue source for Memtech for FY18 and onwards.  Maintain HOLD rating with S$0.725 fair value estimate.   n3wbie  Senior Posted: 03-Apr-2016 16:00   x 0    x 0 May I understand the basis or reference for this statement? From my understanding of the automotive supply chain, I do not think that there are many players who can be qualified to supply directly to car-makers such as Tesla. There are different tiers with different players such as Continental, BorgWarner, Sensata, etc.  Also, dont Memtech produce mainly rubber and plastics (decorative and functional)? Not sure what components they are producing for Tesla as you mentioned as even if they do supply directly, the quantum we are looking at is relatively low, considering even their newly launched Tesla 3 Model has   refundable deposits from 232k customers.    1oopls           ( Date: 02-Apr-2016 22:41) Posted:    Memtech as a supplier of US$30 to US$40 worth of components per car to Tesla, for all of Tesla& rsquo s models.

 

Memtech International: Tesla To Unveil Model 3