Sunningdale Tech Limited (“Sunningdale”) is one of the largest plastic precision players globally. The firm designs and manufactures some of the most complicated high volume plastic components for the automotive, consumer products and healthcare industries. Sunningdale has built a global manufacturing footprint to support their key clients such as Continental, Magna, Gemalto, Dyson, Roche, Phillips and HP. The firm has also invested more than 50% of its market capitalization over the last 5 years to further increase its technology lead, production expertise and automation.
Despite its industry leading capabilities, the firm continues to trade at a severe discount of 30% to its book value and at a depressed price earnings of <10x.
- Commit to a dividend payout of 60% of Net Profit (potentially provide an attractive dividend yield in excess of 7%)
- Improve investor relations and enhance investors’ confidence by increasing disclosure of strategic plans, products, and business segments
- Focus and expand into sectors with structural growth opportunities such as Electro-mobility, autonomous driving and connectivity to further drive profitability
- Largest shareholder with the support of private equity offered to privatize the firm at S$1.55, a premium of 34% above the VWAP share price of the past 12 months.
- Offer price was subsequently raised by a further 6.5% to S$1.65 (premium of 43%) following public engagement by Quarz to address undervaluation of the initial takeover price
- Quarz exited the position with a return on investment of 46%