This stock could gain should Tesla make further inroads into China
By: PC Lee
06/07/17, 10:43 am
SINGAPORE (July 6): OCBC says Memtech International stands as a direct beneficiary should electric vehicle manufacturer Tesla make further inroads into the China market.
Tesla recently announced that it is in exploratory talks with the Shanghai municipal government in relation to the possible establishment of a Chinese manufacturing plant.
In a Thursday report, analyst Joseph Ng believes this would allow Tesla to be more competitive in the electric vehicle space, given the possible elimination of a 25% import tariff.
(18-04-2017, 02:31 PM)Bluechipfan Wrote: Almost forgot that I am vested in this stock until alerted by price alert I set at 74.5 cents. Even thought only vested with small amount but the dividend was good. Price hit the low of 55 cents during my holding period but just chose to leave it aside as I felt the company could turn around which it appears to have now.
Sold! Not sure it will stay liquid as the share base is small. Took the opportunity to divest with current high trading volume. Eyeing Fu Yu and wanted to add sunsine but no hurry.
(10-04-2017, 02:15 AM)GenS70 Wrote: Salient points of Memtech's investment merits:
1. Lowest PB at 0.6x when its peers like Fischer, Fuyu, Sunningdale & Hi-P are trading above or near NAV
2. Net cash per share of $0.18 with an additional $0.05 coming in from the sale of a property; net cash make up of 33% of its market cap with a dividend yield of 3.5%
3. Historical Ex-cash PE estimated at 6-7x with a potential of a better valuation in 2017 given that 2016 is significantly impacted by the delay in Beats program
4. Market is skeptical because of its earning volatility, however, when viewed in the context of how it recovered from the keypad crisis due to smart phones and this is only 4 years since the height of the keypad crisis, I would say that Memtech is a very resilient company with very dynamic management
5. Memtech is very research & development (R&D) focussed. In its IPO prospectus in 2004, R&D is very much emphasized and in every annual report since IPO, the head of R&D is listed as a key management staff. We do not see this in its peers' annual reports.
In 2015 annual report in Key Management section:
Dr. Han Hui Sheng is the Director of our R&D Institute. He is responsible for overseeing the Group’s research
and development of new materials and technologies. Dr. Han has had more than 20 years of working experience
in material research and manufacturing since he graduated with a Bachelor’s degree from South China University
of Technology in 1985. He was awarded a PhD degree in Chemistry from Institute of Chemistry, the Chinese
Academy of Sciences. After two years of post-doctoral research on polymer materials at the National University of
Singapore, Dr. Han worked as QC Manager and Principal Engineer respectively in two Singapore companies. Dr.
Han joined us in May 2010. Dr. Han was named as an Innovative and Entrepreneurial Talent of Jiangsu Province (
江苏省“双创人才”) (2011) and a Jianghai Elite of Nantong City(南通市“江海英才”) (2012).
6. Given its expertise in keypads, Memtech has developed unique strengths in both plastic and rubber. It works with a mix of materials, for example, integrating silicone rubber and plastic or metal into a single product. I believe it is this edge that helps Memtech qualified as a supplier of automotive components within two years, quicker than the usual timeframe of three to five years. This compares very well with its peer, some of which has to resort to inorganic growth to grow their automotive business
Dated 10 April 2017 when share price is $0.705
Good news for Memtech shareholders, reach NAV, it is probably the last decent one to reach NAV.
29-10-2017, 01:17 AM (This post was last modified: 29-10-2017, 01:18 AM by Bluechipfan.)
(28-10-2017, 04:20 PM)GenS70 Wrote:
(10-04-2017, 02:15 AM)GenS70 Wrote: Salient points of Memtech's investment merits:
1. Lowest PB at 0.6x when its peers like Fischer, Fuyu, Sunningdale & Hi-P are trading above or near NAV
2. Net cash per share of $0.18 with an additional $0.05 coming in from the sale of a property; net cash make up of 33% of its market cap with a dividend yield of 3.5%
3. Historical Ex-cash PE estimated at 6-7x with a potential of a better valuation in 2017 given that 2016 is significantly impacted by the delay in Beats program
4. Market is skeptical because of its earning volatility, however, when viewed in the context of how it recovered from the keypad crisis due to smart phones and this is only 4 years since the height of the keypad crisis, I would say that Memtech is a very resilient company with very dynamic management
5. Memtech is very research & development (R&D) focussed. In its IPO prospectus in 2004, R&D is very much emphasized and in every annual report since IPO, the head of R&D is listed as a key management staff. We do not see this in its peers' annual reports.
In 2015 annual report in Key Management section:
Dr. Han Hui Sheng is the Director of our R&D Institute. He is responsible for overseeing the Group’s research
and development of new materials and technologies. Dr. Han has had more than 20 years of working experience
in material research and manufacturing since he graduated with a Bachelor’s degree from South China University
of Technology in 1985. He was awarded a PhD degree in Chemistry from Institute of Chemistry, the Chinese
Academy of Sciences. After two years of post-doctoral research on polymer materials at the National University of
Singapore, Dr. Han worked as QC Manager and Principal Engineer respectively in two Singapore companies. Dr.
Han joined us in May 2010. Dr. Han was named as an Innovative and Entrepreneurial Talent of Jiangsu Province (
江苏省“双创人才”) (2011) and a Jianghai Elite of Nantong City(南通市“江海英才”) (2012).
6. Given its expertise in keypads, Memtech has developed unique strengths in both plastic and rubber. It works with a mix of materials, for example, integrating silicone rubber and plastic or metal into a single product. I believe it is this edge that helps Memtech qualified as a supplier of automotive components within two years, quicker than the usual timeframe of three to five years. This compares very well with its peer, some of which has to resort to inorganic growth to grow their automotive business
Dated 10 April 2017 when share price is $0.705
Good news for Memtech shareholders, reach NAV, it is probably the last decent one to reach NAV.
What are your views on Memtech now?
Congrats. Price has gone up higher than my divested price. I have indeed bought Fu Yu and added Sunsine after the divestment as well as vested in Keong Hong too. I think memtech is still a good stock.
02-02-2018, 02:17 AM (This post was last modified: 02-02-2018, 02:20 AM by GenS70.)
Sharing a recent foreign brokerage research report on Memtech:
Successful repositioning of product mix; initiate coverage with BUY
Once a top-five global keypad manufacturer, Memtech’s growth was affected when keypad phones became obsolete. However, the firm is now in a new phase of growth as it has diversified successfully into consumer electronics and automotives. Multiple engagements with new and existing customers suggest
consensus could have overlooked its growth potential. Our 34% earnings Cagr over 2017-19 is 18-32% above Bloomberg consensus. Trading at about 9x 18CL PE, the firm appears undervalued compared to local peers, yet has a strong balance sheet (23% net cash to equity) generating positive free cashflow. We initiate coverage with a BUY rating and a S$2.0 target, based on 0.45x PE/G.
Smartphones Nearly Killed This Singapore Stock. Elon Musk Saved It
By Abhishek Vishnoi
March 6, 2018, 12:00 AM GMT+8
The rise of the smartphone almost broke Tze-Mon Chuang’s company -- Elon Musk provided its salvation.
Singapore-based Memtech International Ltd. has more than doubled its market value in the past year thanks to tie-ups with the likes of Tesla Inc. The manufacturer is a key supplier to Musk’s pioneering auto company, making plastic components for its battery packs.
It’s a far cry from just five years ago, when the seismic shift in the phone industry wrought by the advent of touch-screen devices saw Memtech suffer two straight years of losses. Started by Chuang’s father in 2000, the company had been making millions churning out the plastic keyboards used in mobile handsets produced by Nokia, Motorola and Ericsson.
“That put the company immediately into a crisis and there was no way back,” the 42-year-old executive director of the company said in a recent interview. "The easiest way out was to use the money to invest in a totally different business but the existing equipment would become obsolete."
Memtech reports US$1.2 million net profit for 1Q2019
* Revenue rises 11.7% yoy to US$46.5 million driven by robust growth across the Consumer Electronics, Telco and Industrial & Medical segments
* Strong positive operating cash flow generation of US$4.2 million contributes to balance sheet strength as net cash position improves to US$21.1 million as at 31/03/2019 (31/12/2018: US$18.7 million)
M-Universe announces voluntary conditional cash offer for Memtech International Ltd.
* Offer Price of S$1.35, represents a premium of 35.6% over the 6-month VWAP
* Offer Price is final
* Offer presents shareholders with an attractive cash exit opportunity
* M-Universe has secured irrevocable undertakings representing 57.77% of the total number of Shares
The Offeror is a wholly owned subsidiary of Universal Scientific Industrial (Shanghai) Co., Ltd. ("USI"), a company listed on the Shanghai Stock Exchange (SSE: 601231). USI is in turn a subsidiary of ASE Technology Holding Co., Ltd ("ASE"), a company listed on both the New York Stock Exchange (NYSE: ASX) and the Taiwan Stock Exchange (TWSE: 3711).
Exercise of right of Compulsory Acquisition Under Section 215(1) of the Companies Act
The Offeror has, today, exercised its right of compulsory acquisition under Section 215(1) of the Companies Act to compulsorily acquire all the Shares of the Shareholders who have not accepted the Offer (the “Dissenting Shareholders”) on the same terms as those offered under the Offer.
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Lol been a very good year
