SGX:AVV

Stock Analysis Report

Executive Summary

CEI Limited provides contract manufacturing services for the industrial equipment market in the Asia Pacific, Europe, and the United States.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

AVV

-4.0%

SG Electronic

-2.8%

SG Market


1 Year Return

8.1%

AVV

-9.5%

SG Electronic

-5.2%

SG Market

Return vs Industry: AVV exceeded the SG Electronic industry which returned -8.6% over the past year.

Return vs Market: AVV exceeded the SG Market which returned -4.4% over the past year.


Shareholder returns

AVVIndustryMarket
7 Day-1.0%-4.0%-2.8%
30 Day2.0%-5.3%-4.1%
90 Day6.4%-2.7%-3.0%
1 Year18.1%8.1%-4.7%-9.5%-1.4%-5.2%
3 Year32.1%2.6%37.4%19.5%6.2%-5.1%
5 Year265.9%115.5%85.5%44.7%6.9%-11.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVV (SGD1) is trading below our estimate of fair value (SGD25.15)

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


Price To Earnings Ratio

PE vs Industry: AVV is good value based on its PE Ratio (12.1x) compared to the Electronic industry average (12.2x).

PE vs Market: AVV is good value based on its PE Ratio (12.1x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AVV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AVV is overvalued based on its PB Ratio (2.2x) compared to the SG Electronic industry average (0.8x).


Next Steps

Future Growth

How is CEI forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.7%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CEI has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CEI performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVV has high quality earnings.

Growing Profit Margin: AVV's current net profit margins (5.2%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: AVV's earnings have declined by -3.9% per year over the past 5 years.

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

Earnings vs Industry: AVV had negative earnings growth (-3.8%) over the past year, making it difficult to compare to the Electronic industry average (-3.8%).


Return on Equity

High ROE: AVV's Return on Equity (18.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CEI's financial position?


Financial Position Analysis

Short Term Liabilities: AVV's short term assets (SGD61.8M) exceed its short term liabilities (SGD27.3M).

Long Term Liabilities: AVV's short term assets (SGD61.8M) exceed its long term liabilities (SGD4.3M).


Debt to Equity History and Analysis

Debt Level: AVV's debt to equity ratio (15.2%) is considered satisfactory.

Reducing Debt: AVV's debt to equity ratio has reduced from 36% to 15.2% over the past 5 years.

Debt Coverage: AVV's debt is well covered by operating cash flow (251.3%).

Interest Coverage: AVV's interest payments on its debt are well covered by EBIT (30x coverage).


Balance Sheet

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

Debt Coverage by Assets: AVV's debt is covered by short term assets (assets are 10.3x debt).


Next Steps

Dividend

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

8.56%

Current Dividend Yield


Upcoming Dividend Payment

Purchase CEI before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company8.6%marketbottom25%2.6%markettop25%5.7%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AVV's dividend (8.56%) is higher than the bottom 25% of dividend payers in the SG market (2.57%).

High Dividend: AVV's dividend (8.56%) is in the top 25% of dividend payers in the SG market (5.66%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.4%), AVV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.6yrs

Average management tenure


CEO

Ka Huat Tan (66yo)

S$564,749

Compensation

Mr. Tan Ka Huat serves as Managing Director of CEI Contract Manufacturing Ltd. and has been its Executive Director since August 28, 1999. Mr. Tan holds a Bachelor of Science (Physics) degree from Nanyang U ...


CEO Compensation Analysis

Compensation vs Market: Ka Huat's total compensation ($USD403.92K) is about average for companies of similar size in the SG market ($USD337.44K).

Compensation vs Earnings: Ka Huat's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sing Cheong Tien
Executive Chairman 18yrsS$510.71k10% SGD8.7m
Ka Huat Tan
MD & Executive Director0yrsS$564.75k4.63% SGD4.0m
Chee Hoe Sia
CFO, Chief Risk Officer8.6yrsno datano data
Ah Hiang Thng
Senior Director of Customer Relations Management & Marketing0yrsno datano data
Soon Hock Teo
Company Secretary14.5yrsno datano data
May Ling Ngiam
Company Secretary2.8yrsno datano data
Teck Yow Heng
Senior Director of Business Development & Engineering0yrsno data0.92% SGD800.9k

8.6yrs

Average Tenure

58yo

Average Age

Experienced Management: AVV's management team is seasoned and experienced (8.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sing Cheong Tien
Executive Chairman 18yrsS$510.71k10% SGD8.7m
Ka Huat Tan
MD & Executive Director0yrsS$564.75k4.63% SGD4.0m
Chee Yen Gan
Non-Executive Director20.5yrsS$49.00k0.40% SGD344.3k
Teck Sim Ng
Independent Non-Executive Director13.1yrsS$56.00k0.18% SGD157.0k
Yue Nien Tang
Independent Non-Executive Director20yrsS$56.00k0.46% SGD399.7k
Bien Chuan Tan
Lead Independent Director0yrsS$62.00k0.54% SGD469.7k
Ya Lun Wang
Alternate Director4.8yrsno datano data
Siew Lian Theng
Independent Non-Executive Director0.2yrsno datano data

18.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AVV's board of directors are seasoned and experienced ( 18 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

CEI Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CEI Limited
  • Ticker: AVV
  • Exchange: SGX
  • Founded: 1980
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: S$86.698m
  • Shares outstanding: 86.70m
  • Website: https://www.cei.com.sg

Location

  • CEI Limited
  • No. 2 Ang Mo Kio Avenue 12
  • Singapore
  • 569707
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVVSGX (Singapore Exchange)YesOrdinary SharesSGSGDMar 2000

Biography

CEI Limited provides contract manufacturing services for the industrial equipment market in the Asia Pacific, Europe, and the United States. The company offers printed circuit board and box-build assembly services, as well as equipment design, cable harness assembly, and manufacturing services; and value-added services, such as materials management, circuit layout, development engineering and prototype samples, metal stamping, cable harnessing, and precision machined components. It also designs and manufactures own branded proprietary equipment for the semiconductor industry. CEI Limited offers its services for electroluminescence displays used in industrial, transportation, and medical applications; medical and health care equipment; office equipment, such as digital photocopiers; analytical instruments comprising gas and liquid chromatographs, and measurement instruments; aerospace products and oil and gas equipment; industrial safety controllers and environmental sensors; semiconductor equipment; and SMT equipment. The company was formerly known as CEI Contract Manufacturing Limited and changed its name to CEI Limited in April 2016. CEI Limited was founded in 1980 and 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 Analysis2020/02/27 12:42
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.