Case Study: Sunningdale Tech

What is fair investing weather today could be a nasty stock market squall tomorrow, and investors would do well to bank on resilient stocks…

Dr. Clemen Chiang
Dr. Clemen Chiang
SGX Stock Code: BHQ / Stock Price: 1.44

What is fair investing weather today could be a nasty stock market squall tomorrow, and investors would do well to bank on resilient stocks able to weather such storms as they come. Plastic mould and injection company, Sunningdale Tech demonstrates such elasticity, as recent developments point to an ability to shine in spite of overcast economic conditions.

Sunningdale has posted a surge in profits against a backdrop of decreased orders from healthcare and mould-fabrication. It has even proposed a 6-cents-a-share dividend versus its offer of 5 cents last year.

A quick look at last year’s performance suggests adaptability as Sunningdale’s secret behind its continued success. The company responded to less than ideal economic conditions which included increased labour costs and consumer pricing pressure with restructuring and relocation programmes.

One such effort involved one of its South China manufacturing facilities, where restructuring enabled the company to cut costs and increase productivity. Sunningdale also relocated other facilities which were becoming too costly to operate.

With most of its factories in China and Malaysia, the company is susceptible to foreign exchange fluctuations. Yet, forex gains contributed significantly to the recent rise in Sunningdale’s profits.

Investors may be encouraged by the steady inflow of opportunities coming the company’s way, particularly in the automotive and consumer IT sectors. Those looking for stocks that support their pet causes may also be interested to note Sunningdale’s commitment to sustainable, eco-friendly manufacturing and corporate social responsibility.

Sunningdale is a globally recognised plastics manufacturer with over 20 years of operations and manufacturing facilities in nine countries. The company is engaged in the manufacturing and sale of dies, tools, jigs, fixtures, steel moulds and plastic products. Its four operating segments include:

1. Automotive, which produces faceplates for automotive audio systems and other car parts and accessories

2. Healthcare, which produces scoops, caps, and drug delivery and diagnostic devices

3. Consumer IT, which produces mobile phones, inkjet cartridges and other telecom and consumer products

4. Mould Fabrication, which designs and manufactures moulds used for plastic injection parts.

Prominent investors in Sunningdale include featured sophisticated Spiking investor, Mr Koh Boon Hwee, Mr Ong Sim Ho, Mr Khoo Boo Hor, Mr Steven K Uhlmann, Mr Wong Chi Hung, Mr Gabriel Teo Chen Thye and Mr David Lee Eng Thong. Corporate investors include Yarwood Engineering & Trading and Kong Siang Group Holdings.

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