CEI Limited (formerly: CEI Contract Manufacturing)

[weii]

Dear NTL,

CEI's order book in 2HY2014 is strong at $59.8 mil versus $58.2 mil in 1HY2014. Net profit for 2HY2014 is $2.779 mil. If we make the assumption that net profit remains the same as 2HY2014 throughout 2015, it will be $5.558 mil (or 1.6 cents per share) for the whole year. Assuming a similar dividend payout ratio of 69%, potential dividend for the whole of 2015 may be 1.1 cents. Potential dividend yield may be 9.7% at current price of $0.113.

Capex (Purchase of fixed assets) has decreased in 2014 to $1.229 mil from $2.581 mil in 2013 and $2 mil in 2012. If low capex persists in 2015, a high dividend payout ratio of 69% could continue in 2015.

CEI's past dividend record can be seen at http://www.sgx.com/wps/portal/sgxweb/hom...ate_action

Choose CEI for Company Name and under Category choose Dividend, it can be seen that CEI has been paying dividend every year. Dividend for year 2005 to 2001 is listed on Page 3.

Hi weii,

Any idea about the Shanghai's office/factory/watever-it-is? It is shown in the company website under "Contact Us". Yet it is not mentioned in any annual report or announcement.

Dear NTL,

I think it is referring to CEI's associated company - Santec Corporation Pte Ltd. More details on Santec can be found on http://www.acrosemi.com/contractmanufact...rofile.pdf

恭喜发财！

[specuvestor]

Hi just want to check if there is still customer concentration risk?

[NTL]

Hi just want to check if there is still customer concentration risk?

Hi Specuvestor,

Care to share more?

Thx.

[Ray168]

I don't have actual customers data, but reading from it's segment report CEI has focus more more to Asia Pacific customers, EU maintain and while US decline.

Hence, I don't think CEI rely on few top customers.

Customers AR2013 pg 13

Today, the Group has more than 80 customers, of which the top 5 customers account for 52% of FY 2013 revenue.
Over the years, the Group has increased its customer base and decreased dependency on any one customer account.

However, it's EU gross profit has decrease to 19% from 25%.

Hi just want to check if there is still customer concentration risk?

[NTL]

Dear NTL,

CEI's order book in 2HY2014 is strong at $59.8 mil versus $58.2 mil in 1HY2014. Net profit for 2HY2014 is $2.779 mil. If we make the assumption that net profit remains the same as 2HY2014 throughout 2015, it will be $5.558 mil (or 1.6 cents per share) for the whole year. Assuming a similar dividend payout ratio of 69%, potential dividend for the whole of 2015 may be 1.1 cents. Potential dividend yield may be 9.7% at current price of $0.113.

Capex (Purchase of fixed assets) has decreased in 2014 to $1.229 mil from $2.581 mil in 2013 and $2 mil in 2012. If low capex persists in 2015, a high dividend payout ratio of 69% could continue in 2015.

CEI's past dividend record can be seen at http://www.sgx.com/wps/portal/sgxweb/hom...ate_action

Choose CEI for Company Name and under Category choose Dividend, it can be seen that CEI has been paying dividend every year. Dividend for year 2005 to 2001 is listed on Page 3.

Hi weii,

Any idea about the Shanghai's office/factory/watever-it-is? It is shown in the company website under "Contact Us". Yet it is not mentioned in any annual report or announcement.

Dear NTL,

I think it is referring to CEI's associated company - Santec Corporation Pte Ltd. More details on Santec can be found on http://www.acrosemi.com/contractmanufact...rofile.pdf

恭喜发财！

Hi weii,

The addresses of the Shanghai companies are not the same. So.. Maybe not...

[valuebuddies]

I just had a quick look on its AR and was so amazed with their transparency in particular on the keyman remuneration.

But frankly speaking, what make it so different comparing to PCI in whic PCI has similar PE and dividend yield but with much lower PTB and zero debts? And outside this field, there are still many tech companies with low PE and high yield which has not been "properly appreciated" by the investors.

I guess it's all because of vested interest from Temasek accounted to approximately S$3M based on today's share price? Isn't it just a peanut skin to Temasek that not worth consideration?

[NTL]

I just had a quick look on its AR and was so amazed with their transparency in particular on the keyman remuneration.

But frankly speaking, what make it so different comparing to PCI in whic PCI has similar PE and dividend yield but with much lower PTB and zero debts? And outside this field, there are still many tech companies with low PE and high yield which has not been "properly appreciated" by the investors.

I guess it's all because of vested interest from Temasek accounted to approximately S$3M based on today's share price? Isn't it just a peanut skin to Temasek that not worth consideration?

Errr... Not much difference really. Just that weii happen to bring out this thread again, so I did a few little research and ask a few little questions. So a few other forumers help me to clarify those questions.

Anyway, don't see much appreciation given to this company yet. Not much price movement or volume...

[BlueKelah]

Piqued my interest.

Good payout of dividend every year and good yield.

Unfortunately this company has slight 9%+ net debt.
No MOS with regard to NAV.

With Temasek backing probably won't ever go bankrupt and book-keeping should be good. But have to consider MOS and possible downside as tech sector can change fast as well.

Put on radar and wait for fundamentals to become more attractive.

[NTL]

One comment about their ARs.

Other than the covers and the numbers, the rest of the words are pretty much the same!

[specuvestor]

Hi just want to check if there is still customer concentration risk?

Hi Specuvestor,

Care to share more?

Thx.

I don't have actual customers data, but reading from it's segment report CEI has focus more more to Asia Pacific customers, EU maintain and while US decline.

Hence, I don't think CEI rely on few top customers.

Customers AR2013 pg 13

Today, the Group has more than 80 customers, of which the top 5 customers account for 52% of FY 2013 revenue.
Over the years, the Group has increased its customer base and decreased dependency on any one customer account.

However, it's EU gross profit has decrease to 19% from 25%.

Thanks guys I might have been mistaken that they used to have 2/3 revenue from HP