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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.
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.
Conclusion .. above initiatives are very major and strategic and have many implications on costs and efficiency/productivity. Cut costs where costs can be cut and increase capacity where there is a market for it. I think these are very good moves by the company.
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