gsg_stock discussion

Stockwatch: Spindex (Singapore) $0.18

Spindex is the listed comparable of Innovalues Precision (Singapore).

It has plants in Singapore, Johor (Malaysia), Shanghai, Suzhou (China) and Hanoi (Vietnam). Hanoi plant
- commenced operations in December 2005
Suzhou plant
- started operations in October 2004, will focus on new projects with existing customers in MAT sector
- turned profitable in 2H FY2006

Major shareholders
- Choo Heng Thong, Founding Shareholder & MD
- Tan Choo Pie @ Tan Chang Chai, Exec Chairman, also
Non-Exec Chairman of MMI

Key customers:
Imaging & Printing
- HP, Brother, Canon
Machinery, Automotive systems & telecommunications
- Robert Bosch, Makita, Black & Decker, Texas Instruments, Delphi, Motorola
Domestic Appliances, Consumer Electronics & Others
- Phillips, General Electric
Data Storage
- Maxtor, Quantum, Jabil

Extracted from its 2006 Annual Report:

The business environment is expected to remain competitive in FY2007. Volatile raw material prices will add an element of uncertainty to input costs and high oil prices continue to be an area of concern. Nevertheless, the Group will continue to monitor and manage its operating costs closely so as to minimise any negative impact on its profit margin.

Business expansion and new product launches by customers will underpin strong demand for the Group’s products in the current financial year. Better performance at the Malaysian plant is expected with the commencement of new projects to support existing IP and automotive customers.

In Hanoi, we expect to breakeven in FY2007 as the new plant benefits from greater economies of scale with increased production from existing customers and new business generated from new foreign investments in the IP sector.

The Suzhou facility turned profitable in 2HFY2006. Our exit from the telecommunications segment has allowed us to focus resources on our key customers and market sectors.

posted by gsg @ 3:13 PM