SINGAPORE (Dec 13): Activist investment group Quarz Capital Management is urging the board and management of Sunningdale, the global player in precision plastic engineering, to take decisive actions to address the severe undervaluation and promote shareholder value next year.

Quarz wants Sunningdale to increase its dividend distribution to 60% of core net profit to all shareholders -- translating into a dividend yield of 7% -- while it continues to invest $25 million in capital expenditure and retain $17 million of cash flow per year.

“We also propose Sunningdale to distribute more than 50% of the proceeds from the disposal of its Zhongshan factory in consideration of its fortified balance sheet,” says Quarz, could translate into a dividend yield of more than 4%.

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