The manufacturer of plastic injection moulds and precision assembly says the automotive segment continued to be the only one exhibiting strong revenue growth. FY16 revenue for this segment rose 12% y-o-y, driven by higher orders from new and existing customers.
Sunningdale added that order backlog for the segment remained robust and growth could be the highest in this segment as earlier customers enter the production ramp-up phase.
Although management remains cautious on the outlook for FY17, CIMB is raising FY17-18F core EPS forecasts by 19-20% as we adjust for lower operating expenses given the success of its restructuring efforts.
“We also relax our core net profit definition and add $2 million of other income forecasts into our estimates,” adds CIMB.
Shares of Sunningdale Tech are trading at $1.29.
