Sunningdale is a different game n the waiting time may be longer. It's 2013 result should be alright as it's 9 months profits is already higher than last financial year ie 2012. The dividend payout ratio is between 28% to 94%, so the dividend should also be alright.
The initiatives taken by the company will be reflected in 2014. So, it will be an exciting year for Sunningdale. If the initiatives taken by them in 2013 bear fruits, it will be a great year for Sunningdale. If it doesn't, then the call is off. They have got on with a good start with S$5.43 m capital gain from the sales of it's plant in Singapore. Personally I am bullish but i could be wrong. And I have allocated 40% of my portfolio in this counter. So invest with your own risk.
Ohe reason it has upside is its NAV is 34 cents when the share price is now only 17.2 cents. When the recovery in earnings comes, the share price will have a lot of fuel to hit NAV. Just my 2 cents
Koh Boon Hwee ropes in Popiah King, Yarwood into Sunningdale
By
Angela Tan
angelat@sph.com.sg
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KOH BOON HWEE 200614
Sunningdale Tech said its chairman, Koh Boon Hwee, has roped in two new investors - Yarwood Engineering & Trading and Singapore Popiah King, Sam Goi - to raise S$24.99 million in gross proceeds for the company - PHOTO: SPH
SUNNINGDALE Tech said its chairman, Koh Boon Hwee, has roped in two new investors - Yarwood Engineering & Trading and Singapore Popiah King, Sam Goi - to raise S$24.99 million in gross proceeds for the company.
The company said on Friday that it has placed 153.02 million new shares at S$0.1633 each to Yarwood and Mr Goi.
The share issue represents about 20 per cent. of its existing issued and paid-up share capital, and about 16.66 per cent. of the enlarged issued and paid-up share capital.
The two investors, who were approached separately by Mr Koh, will subscribe for 76.51 million shares each, representing 8.33 per cent of its enlarged share capital.
Yarwood is a subsidiary of Kong Siang Group Holdings, a distributor of spirits and alcoholic beverages, headquartered in Singapore. Kong Siang's shareholders are David Lee Eng Thong, Lee Eng Khian, Lee Eng Chye Victor and Lee Siu Huang.
Mr Goi is the executive chairman of GSH Corporation, Tee Yih Jia Group and Yangzhou Junhe Real Estate Group.
The money will be used as working capital to fund the growth and expansion of the company's business, and to increase its capacity for any acquisitions in the future.
The issue price of S$0.1633 a share represents a discount of about 10 per cent to the weighted average price of S$0.1814 per share for trades done on June 18, 2014 up to the time the placement agreements were signed.
Sunnngdale has done a placement at 16.33 cts per share.
In view of the placement i have decided to sell off my shares at an average price of 18.75 cts per share. Based on my entry price of 13.9 cts n taking into consideation the dividends of 0.7 cts per share, the overall gain is about 40% over a 6 month period.
2 reasons why i sold :
1. placement price was low at 16.33 cts.
2. the number of shares has been diluted.
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