CEI3.16CEI Contract Manufacturing Limited (CEI SP) is a contract manufacturer providing printed circuit board and box-build assembly services.

The company serves a diverse base of customers in the industrial equipment market, in sectors ranging from life sciences, medical technology, aviation, industrial, oil and gas and semiconductor.


FY15 dividends 10 c / share
Share price
(14 March 2016)
67.5 c
Trailing dividend yield 14.8%
CEI stands out among other CMs with its unique business model of a highmix, low-volume strategy, and is often the single-source or most costefficient supplier of niche components for its customers.

This approach, combined with a competitive cost structure, has encouraged a high level of customer stickiness and above-industry margins. Operating from its manufacturing facilities in Singapore, Batam and Vietnam, the company’s factory utilisation currently stands at 70%, giving it ample capacity to take on new businesses without much additional overheads.



FY15 net profit surged 109% to S$10.8m even as its revenue grew just 9%, driven by a rise in operating margin from 6.3% to 10%.

The company is focused on broadening its range of services from beyond an electronics house to a full-fledged contract manufacturing with box-build and mechanical capacities, and is open to M&A possibilities or joint-ventures with like-minded partners.

Goh Han Peng"CEI has a cash-generative business model and historically has paid out 70- 80% of its profits as dividends"

-- Analyst Goh Han Peng (photo)

While the slowdown in the oil and gas sector has taken a toll on its forward orderbook, which is down by some S$10m compared to a year ago, its diversified customer base and growing momentum in its fledging equipment business should help to mitigate some of the shortfall.

CEI has a cash-generative business model and historically has paid out 70- 80% of its profits as dividends.

Based on last year’s payout of S$0.10/share, the stock is trading at a trailing yield of 15% and a historical P/E of 5.4x.


Comments  

0 #1 Catguo 2016-03-17 05:06
I just read this.luckily I brought 59000 shares for the last 3 days based on my conservative valuation of $1.2 per share.
Quote

Share Prices

Counter NameLastChange
AEM Holdings0.895-0.005
Alliance Mineral0.186-0.003
Anchor Resources0.0110.001
AusGroup0.0280.001
Avi-Tech Electronics0.270-0.005
Best World Int.1.360-
China Sunsine1.170-
CSE Global0.475-0.005
Food Empire0.515-0.005
Geo Energy0.1520.004
Golden Energy0.199-
GSS Energy0.071-
HMI0.5850.025
ISDN Holdings0.230-
KSH Holdings0.450-0.015
Miyoshi0.045-0.001
Moya Asia0.078-
Nordic Group0.2750.005
Oxley Holdings0.300-0.005
REX International0.062-0.001
Riverstone0.925-0.005
Roxy-Pacific0.395-0.005
Sing Holdings0.380-
SingMedical0.395-0.005
Sino Grandness0.058-0.001
Straco Corp.0.760-
Sunningdale Tech1.300-0.010
Sunpower Group0.4600.010
The Trendlines0.0810.002
Tiong Seng0.2300.010
Uni-Asia Group1.1400.020
XMH Holdings0.163-
Yangzijiang Shipbldg1.3800.010

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 1142 guests and one member online

  • josephyeo