SGX:BHQ

Stock Analysis Report

Executive Summary

Sunningdale Tech Ltd manufactures and sells dies, tools, jigs, fixtures, high precision steel molds, and plastic components.

Rewards

Trading at 42.1% below its fair value

Earnings are forecast to grow 22.53% per year

Risk Analysis

Dividend of 6.02% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (2.3%) are lower than last year (3.7%)



Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Silitech Technology

TSEC:3311

Share Price & News

How has Sunningdale Tech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BHQ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

BHQ

-7.1%

SG Machinery

-1.5%

SG Market


1 Year Return

-12.2%

BHQ

-15.1%

SG Machinery

0.6%

SG Market

Return vs Industry: BHQ exceeded the SG Machinery industry which returned -14.7% over the past year.

Return vs Market: BHQ underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

BHQIndustryMarket
7 Day-2.3%-7.1%-1.5%
30 Day-3.0%-5.3%0.6%
90 Day8.4%2.5%1.9%
1 Year-6.8%-12.2%-13.3%-15.1%4.7%0.6%
3 Year33.0%14.2%6.2%-0.6%13.7%1.6%
5 Year62.6%29.0%-28.2%-36.8%11.4%-7.2%

Price Volatility Vs. Market

How volatile is Sunningdale Tech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sunningdale Tech undervalued compared to its fair value and its price relative to the market?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BHQ (SGD1.33) is trading below our estimate of fair value (SGD2.3)

Significantly Below Fair Value: BHQ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BHQ is poor value based on its PE Ratio (16x) compared to the Machinery industry average (9x).

PE vs Market: BHQ is poor value based on its PE Ratio (16x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: BHQ is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BHQ is overvalued based on its PB Ratio (0.7x) compared to the SG Machinery industry average (0.7x).


Next Steps

Future Growth

How is Sunningdale Tech forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHQ's forecast earnings growth (22.5% per year) is above the savings rate (1.8%).

Earnings vs Market: BHQ's earnings (22.5% per year) are forecast to grow faster than the SG market (6.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BHQ's revenue (1.9% per year) is forecast to grow slower than the SG market (5.6% per year).

High Growth Revenue: BHQ's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BHQ's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has Sunningdale Tech performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHQ has a large one-off gain of SGD8.0M impacting its September 30 2019 financial results.

Growing Profit Margin: BHQ's current net profit margins (2.3%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: BHQ's earnings have declined by -4.7% per year over the past 5 years.

Accelerating Growth: BHQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BHQ had negative earnings growth (-41.2%) over the past year, making it difficult to compare to the Machinery industry average (4.6%).


Return on Equity

High ROE: BHQ's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sunningdale Tech's financial position?


Financial Position Analysis

Short Term Liabilities: BHQ's short term assets (SGD494.5M) exceed its short term liabilities (SGD305.1M).

Long Term Liabilities: BHQ's short term assets (SGD494.5M) exceed its long term liabilities (SGD59.0M).


Debt to Equity History and Analysis

Debt Level: BHQ's debt to equity ratio (28.5%) is considered satisfactory.

Reducing Debt: BHQ's debt to equity ratio has increased from 19.2% to 28.5% over the past 5 years.

Debt Coverage: BHQ's debt is well covered by operating cash flow (39.1%).

Interest Coverage: BHQ's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: BHQ has a high level of physical assets or inventory.

Debt Coverage by Assets: BHQ's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

What is Sunningdale Tech's current dividend yield, its reliability and sustainability?

6.20%

Current Dividend Yield


Dividend Yield vs Market

company6.2%marketbottom25%2.5%markettop25%5.5%industryaverage4.3%forecastin3Years6.2%

Current dividend yield vs market & industry

Notable Dividend: BHQ's dividend (6.02%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: BHQ's dividend (6.02%) is in the top 25% of dividend payers in the SG market (5.41%)


Stability and Growth of Payments

Stable Dividend: BHQ's dividend payments have been volatile in the past 10 years.

Growing Dividend: BHQ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.3%), BHQ's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BHQ's dividends in 3 years are forecast to be covered by earnings (86.3% payout ratio).


Next Steps

Management

What is the CEO of Sunningdale Tech's salary, the management and board of directors tenure and is there insider trading?

11.2yrs

Average board tenure


CEO

Boo Hor Khoo (54yo)

11yrs

Tenure

0

Mr. Boo Hor Khoo has been the Chief Executive Officer of Sunningdale Tech Ltd. since January 1, 2009. Mr. Khoo served as an Operations Director of Sunningdale Precision Industries Ltd. Mr. Khoo joined the  ...


Board Age and Tenure

11.2yrs

Average Tenure

54yo

Average Age

Experienced Board: BHQ's board of directors are seasoned and experienced ( 11.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Cindy Bin

    Human Resource Director

    • Hui Ling Soh

      Chief Financial Officer

      • Simon Tan

        GM & Senior VP of Corporate Management

        • Tenure: 19yrs
      • Boo Hor Khoo (54yo)

        CEO & Executive Director

        • Tenure: 11yrs
      • Dorothy Ho

        Company Secretary

        • Tung Sing Chan

          Senior Vice President of Business Development


          Board Members

          • Wai San Loke (51yo)

            Independent Director

            • Tenure: 1.5yrs
          • Sim Ho Ong (50yo)

            Independent Director

            • Tenure: 14.5yrs
          • Kaka Singh

            Lead Independent Director

            • Boon Hwee Koh (68yo)

              Non Executive Chairman

              • Tenure: 4.1yrs
            • Gabriel Teo

              Independent Director

              • Tenure: 14.5yrs
            • Chi Hung Wong

              Non-Executive Director

              • Tenure: 15.7yrs
            • Boo Hor Khoo (54yo)

              CEO & Executive Director

              • Tenure: 11yrs
            • Eileen Tay-Tan (66yo)

              Independent Director

              • Tenure: 2.6yrs

            Company Information

            Sunningdale Tech Ltd's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Sunningdale Tech Ltd
            • Ticker: BHQ
            • Exchange: SGX
            • Founded:
            • Industry: Industrial Machinery
            • Sector: Capital Goods
            • Market Cap: S$247.605m
            • Shares outstanding: 191.94m
            • Website: https://www.sdaletech.com

            Number of Employees


            Location

            • Sunningdale Tech Ltd
            • 51 Joo Koon Circle
            • Singapore
            • 629069
            • Singapore

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            BHQSGX (Singapore Exchange)YesOrdinary SharesSGSGDOct 2003

            Biography

            Sunningdale Tech Ltd manufactures and sells dies, tools, jigs, fixtures, high precision steel molds, and plastic components. The company operates through four segments: Automotive, Healthcare, Consumer/IT, and Mould Fabrication. The Automotive segment produces faceplates for automotive audio systems and climate controls, speedometers/clusters, steering switches, exterior antenna covers, etc. The Healthcare segment produces scoops, caps, and drug delivery and diagnostic devices. The Consumer/IT segment produces IT, consumer, and telecommunication products, including point-of-sale terminals, water filtration products, grooming products, inkjet cartridges, etc. The Mould Fabrication segment designs and manufactures molds that are used in the manufacture of plastic injection parts. The company is also involved in the trading of car audio equipment; manufacture of plastic products in video front panels, office automation products, and sub-assembly of paper feeders for printers and computer components; contract manufacturing of assembled plastic products; and manufacture and sale of precision plastic injection molding products and engineering plastic components, as well as painted and laser etched plastic parts. In addition, it provides technical consulting services. The company offers its products to multi-national companies and original equipment manufacturers in Singapore, Thailand, Indonesia, Malaysia, the People's Republic of China, Hong Kong, the Americas, Europe, and internationally. Sunningdale Tech Ltd is headquartered in Singapore. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/25 12:36
            End of Day Share Price2020/01/24 00:00
            Earnings2019/09/30
            Annual Earnings2018/12/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.