Despite these run-ups, there are laggards within the tech sector. One of them will be Sunright (SGX:S71
) . It is one of the largest independent providers of burn-in and test services and a leading manufacturer of parallel test and burn-in systems, which is somewhat similar to AEM’s current line of business.
While the company did not disclose its customers’ names, Sunright highlighted in its recent annual report that its customer base spans diverse applications in the automotive, AI, communications, military and commercial markets.
In the same one-year period, Sunright’s share price saw a gain of around 183%. Not too shabby, but it still does not clearly reflect Sunright’s value at its current level.
The company recently returned to profitability in 1HFY2026 ended Jan 31, with $1.4 million in profit. Back in FY2025, Sunright suffered a full-year loss of $5.8 million due to weaker market conditions in both the computing and automotive market segments.
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Even as the company is back in the black for 1HFY2026, there is still significant value within Sunright, awaiting investors to uncover.
As at Jan 31, Sunright’s cash and short-term deposits amount to $83.8 million. With loans and borrowings totalling $16.2 million, the company is in a net cash position of $67.6 million.
Compared with its current market capitalisation of $65.7 million, this means the market has assigned a negative value to the remaining items on its balance sheet, such as $48.8 million of property, plant and equipment.
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With a share price of 53.5 cents on April 20, this translates to a price-to-book ratio of 0.91 times. In addition to the net cash balance sheet, Sunright also owns a 48.4% stake in Bursa-listed KESM Industries. Today, Sunright’s 48.4% stake in KESM is valued at $21.8 million.
Investors will be thinking: Why is the market assigning this type of valuation to Sunright?
One possible reason could be the low trading liquidity. According to Sunright’s recent annual report, executive chairman and CEO Samuel Lim Syn Soo holds a near-55 % stake in the company. Together with the other 19 top shareholders, they collectively hold a 80.31% stake in the company.
Another possible reason could be the lack of a sizeable dividend payout to shareholders, despite the substantial cash hoard of $83.8 million. So, is the company conservative, stingy or just inefficient with its capital?
Sunright, given its profile as a back-end player, should be able to catch up once the actual hardware starts shipping in volume.
Overall, Sunright could very well be one of the cheapest tech stocks here in our stock market. But again, is the market missing out on this opportunity or is it just another case of mispricing?
The bottom line is that without a clear plan to monetise its 48.4% stake in KESM and address the excessive cash hoard on its balance sheet, Sunright will continue to trade at a discount to its rightful value.
