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While Tuan Sing Holdings is recognised as a regional real estate group, one of its most valuable holdings is rooted in its 44.5% equity interest in Gul Technologies Singapore (GulTech), a printed circuit board (PCB) manufacturer. |
The Story of a Failed IPO
In 2021, it was announced that Gultech Jiangsu was exploring a potential IPO in China. Unfortunately it was eventually aborted.
Tuan Sing's CEO acknowledged shareholder feedback regarding the need to unlock its value.
He assured investors that the board is "working hard" and actively exploring various strategic options to monetize this asset.
| Favourable condition |
| "Today's condition looks very favourable. And then we have all along been telling the market that this is a non-core investment... So now, taking advantage of this window, we quickly do a deal to divest off our stake so that we can bring down our debt meaningfully." -- Shareholder at AGM |
"It's been taking time, but I think at the end of the day, as you rightly pointed out, the markets are quite strong at this point in time for that particular asset, that asset class, and there's a lot of interest in it. And we are, as a board, trying to explore different ways to monetize that," he said in reply to a shareholder.
GulTech caters to a diverse range of industries, including the automotive, computer peripheral, consumer electronics, and healthcare sectors.
It currently operates two plants in Suzhou, Wuxi and Jiangsu, and has just set up a fourth facility in Kedah, Malaysia.
| What valuation? |
| "Based on GulTech’s current earnings profile, what valuation range does the board ascribe to this investment under different scenarios, and how does this compare with its carrying value on the balance sheet?." -- SIAS' pre-AGM submitted question. Tuan Sing did not respond to the part about valuation range. |
GulTech's Profitability and the PCB Market Boom
The timing for such a divestment could not be better, as GulTech is currently riding the wave of an industry upswing.
GulTech recorded a net profit of S$65.82 million on a 100% basis for FY 2025.
This success is underpinned by increased global demand for printed circuit boards.
Furthermore, the broader PCB market is experiencing a boom, largely driven by the growth of AI applications.
Financials of GulTech and its subsidiaries on a 100% are shown in the table below:
|
Year |
Revenue (S$'000) |
Net Profit (S$'000) |
|
2022 |
624,931 |
62,086 |
|
2023 |
506,606 |
71,181 |
|
2024 |
430,495 |
59,032 |
|
2025 |
470,498 |
65,817 |
|
Source: Tuan Sing annual reports |
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A shareholder cited Victory Giant, which surged post-listing in April 2026 on HKSE, and trades at ~50X PE, a premium due to its PCB products targeting AI usage for AI clients, especially Nvidia.
Even if GulTech's PE is, say, 20X, given its exposure is to automotive and other sectors, the valuation of S$1.3 billion translates to S$580 million attributable to Tuan Sing's stake.
This alone is higher than Tuan Sing's current market cap of S$412 million (stock price: 33 cents).
Currently, Tuan Sing's equity interest in GulTech is carried on its balance sheet at S$177.69 million.
If Tuan Sing successfully executes a complete divestment of GulTech, the windfall could be transformative for the group.
Ultimately, it would also provide extra fuel for Tuan Sing's real estate ambitions and enhance overall shareholder returns. |
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→ See previous article: This Is TUAN SING’s Catalyst: Associate GulTech's Future IPO To Unlock Value
