Sunningdale Tech profit surges 115.3% to $8.2m

Its Consumer/IT segment contributed $71m, 40% of total sales.

Sunningdale Tech Ltd’s (Sunningdale Tech) reports good news for Q2 after its earnings surged 115.3% YoY from $3.8m to $8.2m on a 6.5% rise in sales, according to DBS Equity Research.

The company’s gains last year were dragged by one-off restructuring costs of $4.8m, but partly offset by a forex gain of $1.5.

“Stripping out the impact of forex and one-offs, we estimate that net profit would have been closer to S$7m/s$9.8m/S$10.9m in 2Q16/1Q17/2Q17, respectively,” DBS head analyst Lee Keng Ling said.

Its consumer/IT business segment performed the best with 7.8% QoQ growth, and contributed 40% or $71m to Q2 sales.

Meanwhile, sales from its automotive segment dipped by 2.7% QoQ after posting growth for 10 consecutive quarters. However, it still has a 37% contribution to the quarter’s sales.

The construction of its new manufacturing plant in Malaysia is still ongoing and is set to complete by Q1 2018.

Sunningdale Tech will also add capacity to its plant in China, which can allow it to shoulder more automotive and consumer/IT work in the future.

“As Sunningdale continues to execute on the above, it should incur higher capex of c.S$35m for FY17F, compared to the historical average of S$25m p.a.,” Ling said.