SINGAPORE (May 6): Sunningdale Tech, the precision plastic manufacturer, reported 1Q2020 earnings of $2.4 million, up 205.3%.
Excluding the impact from foreign exchange, retrenchment costs, and other items, Sunningdale’s core net profit would have been $0.3 million for 1Q20, down 86.3% y-o-y.
This decline in core net profit was mainly due to lower utilisation of its China and Malaysia plants due to COVID-19 control measures undertaken by governments.
Revenue, in the same period, was down 8.8% y-o-y to $145.5 million. Several key segments, namely automotive, consumer and IT suffered from lower demand, but healthcare orders increased.
Gross profit margin dropped 0.6 percentage points to 10.2%, mostly due to the group’s closed facilities.
No dividend was declared for the quarter.
Sunningdale Tech expects the current 2Q2020 to remain as a “challenging quarter”, as customers make adjustments and entire industries face uncertainty due to the outbreak.
However, the group said it will focus on what it can control internally, which includes boosting productivity and improving efficiency within its operations.
Its healthcare segment, which is the fastest growing segment for the group, continues to see “stable demand”. The group said it has also continued to receive inquiries from new and existing customers for each segment.
Sunningdale Tech shares closed 0.5 cents higher, or 0.5% up, at 98 cents.
