SINGAPORE (Dec 31): On Dec 13, activist investor Quarz Capital issued an open letter to the directors of Sunningdale Tech to address the company’s stock price. Arguing that it was severely undervalued, the investor suggested that the company implement a dividend policy. “As Sunningdale’s free cash flow and balance sheet strengthen in 2019, we recommend the firm increase its dividend distribution to 60% of core net profit. This can potentially provide an attractive dividend yield of 7.1% to all shareholders. Sunningdale can continue to invest $25 million in capital expenditure and retain $17 million of cash flow per year,” Quarz Capital says.

Have a premium account? Sign in to continue reading.

Unlimited access to all stories from $4.99/month*

The latest reporting and analysis from business and investments to news and views on social issues.

Bonus:

  • Simultaneous logins across all devices
  • Instant access to past digital issues
  • Unlimited access to The Edge Malaysia
  • *For annual subscription plan only. T&Cs apply

SUBSCRIBE NOW