CEI Limited (formerly: CEI Contract Manufacturing)

Strangely, nobody is into this. Paid ~1.3 cents div last year, share price is less than 10 times. Sunset industry, heavily dependent on HP.

Who just went to buy up this one? The next ex-date is Apr... be patient... Can drop til 9 cents easily in a downturn.

Missed this temasek company when I was compiling the PCBs. Thanks for highlighting.

They don't have big revenue (<$100m - not considering FY11). Their balance sheet is stretched compared to others. High yield due to a very high payout ratio. Current share price is still above NTA despite being down. The PCI delisting offer was only at 1.01x NAV when times were better.

With so many listed PCBs companies to choose from, personally I think it is better to get one that
- reacts most positively in an upturn
- has good asset backing
- has sustainable dividend payout
- enjoys some economy of scale or focusing on some niche segments

But only if you want a piece of PCBs...

Haha, finally encounter someone who knows protel, gerber file...

When people slice fruits/cut ropes on their ipads, almost no one thinks of the PCB's or IC's beneath - the design of the casing is more important.

That's why electronic products & electronic engineers get cheaper, while a piece of material with LV stamped on it can cost $k's.

One day, a piece of wafer will cost less than a waffle with kaya & butter... sad...

Who is the lucky fellow who got the 33 lots @ 0.088-0.089?

CEI has increased its net profit by 41.3% in year 2014. Total dividend for Year 2014 is $0.0102 with a high dividend yield of 9.6% at current price of $0.106.

I will like to share 5 reasons why I invest in CEI.

1) Consistently high historical dividend yield

CEI has consistently paid out good dividend. For the last 4 FYs, dividend yield ranged from 6.8% to 9.6%. For FY14, dividend yield was 9.6% and dividend payout ratio was 69%.

2) Strong management team

CEI has quite a strong management team, led by Mr Tien Sing Cheong and Mr Tan Ka Huat, both veterans in the electronics industry.

3) Strong strategic partnership and research

Machine Vision System (MVS) in partnership with Ultratech

CEI partnered Ultratech, a renowned US original equipment manufacturer of photolithography and laser processing equipment, to establish full turnkey manufacturing capability of Machine Vision System (MVS).

Optical metrology instruments for Zygo

CEI was one of the few manufacturers qualified to produce highly sophisticated
opto-mechanical instruments for Zygo - a world-renowned supplier of optical metrology instruments.

Member of the A*STAR-led consortium in clean energy

A*STAR formed a strategic partnership with four companies, namely, Rolls Royce, Vestas, SP PowerGrid and CEI Contract Manufacturing, to develop smart grid and distributed energy solutions for Singapore.

4) Serve the growing industrial equipment sector

CEI Contract Manufacturing Limited provides contract manufacturing services to industrial equipment market in the United States, Europe, and Asia Pacific. It also designs and manufactures its own brand of proprietary equipment for the semiconductor industry. The company 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; industrial safety controllers and environmental sensors; and front and back end semiconductor equipment and SMT equipment.

5) Beneficiary of rising US dollar and growing US economy

CEI customers are predominantly US companies and sales are mostly denominated in US dollars. The rising US dollar and growing economy may lead to higher sales and foreign exchange gains.

As at 31 Dec 2014, CEI has orders on hand worth $59.8 million, an increase of 26% from $47.3 mil at end 2013. Gross profit margin has also increased to 24.2% (Year 2014) from 22% in Year 2013.

More details can be founded in the recent article that I posted on Nextinsight website:
http://www.nextinsight.net/index.php/sto...facturingq

From what it seems, the company had been paying out dividend since 2008. Can't find information before that.

Pretty generous.

(13-02-2015, 10:24 AM)NTL Wrote: From what it seems, the company had been paying out dividend since 2008. Can't find information before that.

Pretty generous.

From my source, the company paid dividend way back to 2004. I don't have the info before that. The company listed in year 2000.

(not vested)

(13-02-2015, 10:37 AM)CityFarmer Wrote:

(13-02-2015, 10:24 AM)NTL Wrote: From what it seems, the company had been paying out dividend since 2008. Can't find information before that.

Pretty generous.

From my source, the company paid dividend way back to 2004. I don't have the info before that. The company listed in year 2000.

(not vested)

Oh. Thx for the info.

Look like it worth gettinf some for the dividend. The share price looks pretty flat though. Lack of drivers due to the industry it is in?

Did a quick study on the company financial performance.

.....................Revenue......Gross Profit......Net Profit......Order Book
1HY2013........54.173M......11.528M...........2.065M........46.0M
2HY2013........55.490M......12.599M...........1.573M........47.3M
1HY2014........56.510M......12.894M...........2.261M........58.2M
2HY2014........64.812M......16.451M...........2.947M........59.8M

From what is seems, their order book tends to be completed by next half yr, with a little bit more extra. Thus, a better 1HY2015 will be expected? And more dividend to be announced?