Brokers' take

Sunningdale Tech | Hold (upgraded) May 8 close: S$1.32 Target price: S$1.38 CGS-CIMB, May 7

First quarter net profit of S$0.8 million was a relief as we were worried that Sunningdale may incur a loss in the first quarter.

Excluding a foreign exchange loss of S$0.9 million, Sunningdale disclosed that its adjusted net profit was S$2.1 million. For Q1, the revenue decline of 6 per cent year-on-year (yoy) was mainly due to a 15 per cent decline in sales in the automotive segment (due to weak demand and projects reaching end-of-life).