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Memtech eyes car industry for growth
21 Mar 2016 09:00
By Soon Weilun
ELECTRONICS components maker Memtech International has added two car giants to its clientele as it continues to shift its gears towards the car industry.
With the inclusion of electric car maker Tesla and car parts producer Faurecia, SGX mainboard-listed Memtech aims to increase the revenue share of the car industry - currently at 40 per cent - to 50 per cent by 2017.
Memtech supplies plastic parts such as battery packs, connector holders and electronic control units for Tesla, while making plastic components for Faurecia' s climate control systems.
" We aim to be a strategic partner or core supplier for our customers in this space," said Chuang Wen Fu, executive chairman of Memtech, in an interview published on SGX' s blog My Gateway kopi-C.
The company, which was founded in the late 1990s, started out manufacturing keypads for mobile phones. By 2004, the popularity of mobile phones helped Memtech take in US$40 million - up from just US$2 million two years before.
But with the advent of touchscreens in 2011, Memtech quickly saw its fortunes vaporise. It then decided to change its gears towards the car industry instead, producing keypads for car components.
This reversed the tide for Memtech. In 2013, it saw revenues and profits rebound.
Mr Chuang noted that there is now plenty of room for the company to develop as China' s car market grows.
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:
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Memtech as a supplier of US$30 to US$40 worth of components per car to Tesla, for all of Tesla&rsquo s models.
congrats! today a green day
With the spike today I am in the money for this stock now! A not too shamble 12% gain without factoring in the 3.3 cents dividend yet! Pardon me just talking to myself. Wanted to post something and check back some time later as today spike is unusual.
Steadily and gain about 5 cents in a month. Stabilising at current level. The company has little debt with strong cash flow. Dividend coming!
Formalised dividend payout policy! The company will pay out at least 30% of earning annually. The latest EPS in SGD is about 10 cents, using this as yardstick, next year minium dividend will be 3 cents. Seems logical as this year dividend is 3.3 cents. I think the ocmpany will do well going forward and with the increased profit, I look forward to regular and meaningful dividend.
(Vested)
Still a good 5% yield at 65 cents!! I think Memtech is undervalue compare to innovalue. The company has negligible debt and substantial cash in hands. Top line is always healthy, just need to improve their margin to have a more impressive bottom line. Price bump up today. Maybe some value investor started to take notice. Just be patient.
It seem there are some interest in this stock? Just announced results. 3.3 cents dividend which yield about 5.5% at current price. Good? Any view?
Steadily moving up. Would continue to load bit by bit before 3Q result which should strong earning growth from 2Q
Quiet accumulation before it shoots up.
think2profit ( Date: 05-Oct-2015 23:39) Posted:
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Look like warming up.
lovebullmarket ( Date: 28-May-2015 16:56) Posted:
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Should rise tml!!
This is a fxxx share :)
Interesting to read that CIMB has a price target of 22c.
Price has reversed over the week and now settle on uptrend. Let' s see what happens next. My trading stock here.
BBs seem to be slowly locking into profits, bringing along weak holders.
Ran up too fast based high expectation of profit grwoth from automotive sector. 1Q below expection and therefore price slided down. Let' s see if it can settle at around 12c-13c?
think2profit ( Date: 22-Apr-2015 11:52) Posted:
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take cue from ellipsiz and slowly lock into profit given the lack of direction and softness now...
china just reduced the res reqmt ratio... bodes well for china stocks?
think2profit ( Date: 19-Apr-2015 19:54) Posted:
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