Shares in the precision plastics maker have jumped 60% in a matter of weeks as investors took notice of its expanded operations. But its 1QFY2016 results have raised questions. Koh Boon Hwee, the company’s chairman and major shareholder, puts some perspective on what’s happening.
It is hard to pin Koh Boon Hwee down. But once you do, he is open, engaging and articulate, and especially effusive about the one business that he has been involved in for almost 30 years.
In 1989, Koh and his partners started Omni Mold, a maker of industrial tools. In the years that followed, rounds of mergers and acquisitions took place. Notably, in 2003, Omni merged with Tech Group Asia, the Singapore unit of Ari zona-based plastics manufacturer Tech Group. In 2005, Tech Group Asia acquired Sunningdale Precision Industries. Today, Sunning dale Tech is a precision plastic components manufacturer specialising in products for the automotive, healthcare and consumer electronics industries.
“Early on, I had a choice to make,” Koh tells The Edge Singapore in a recent interview. “When Omni Mold started, I owned almost the entire company. I could own a large part of a really, really small company or I could try to make the company as big as I could make it. And I just chose the second.” Sunningdale has a market capitalisation of about $200 million. Koh is the company’s chairman and its single-largest shareholder, with an 8.5% stake. The second-largest shareholder, according to filings, is food tycoon Sam Goi, with an 8.2% interest.