Excerpts from analyst's report
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INVESTMENT HIGHLIGHTS
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• Sunningdale Tech is a leading manufacturer of precision plastic components. In 2014, its revenue came from automobile (35.9%), consumer/IT (53.3%) and healthcare (10.8%) sectors. Some of the products it manufactures include kidney dialysis systems, Xbox One controller buttons, and sunroof and lighting systems for the automobile segment.
After acquiring First Engineering last year, Sunningdale is now one of the largest precision plastic engineering companies in the world with annual sales of more than S$600m.
• Size and global presence matter. With a global presence in China, Europe and the US, Sunningdale has formed strategic partnerships with customers by handling their global production from manufacturing facilities around the world. 
Koh Boon Hwee, non-executive chairman of Sunningdale.This is likely due to the convenience of negotiating with a single supplier who has the product quality and delivery reliability of a larger precision engineering company as compared with handling many smaller suppliers. Sunningdale currently derives about 50% of its revenue from its top 10 blue-chip clients.
• Expect an uplift in 2015. To recall, Sunningdale acquired First Engineering in Nov 14. Going into 2015, Sunningdale is expected to consolidate a full year of contribution from First Engineering. In 2013, First Engineering reported a net profit of US$3.4m (S$4.2m), or about 30% of Sunningdale’s 2014 adjusted net profit.
• Strong cash flow generation supports consistent dividend payout. Except in 2011 when Sunningdale made two major acquisitions, Sunningdale generated very positive free cash flow of more than S$9m in the last few years.
As a result, Sunningdale has been able to consistently pay out dividends. For 2013, Sunningdale paid out a dividend of 0.7 cent/share, which translates into a dividend yield of 3.8%.
