Will Memtech International survive the tech sector turbulence?

The industry neophyte faces risks of order pushbacks.

The sluggish recovery of the tech industry is barely a blip on Memtech International’s radar, according to a report by OCBC. The company counterbalances the risk of order pushbacks, relies little on industry outlook, and has new orders in the pipeline.

Memtech’s baseline growth is bolstered significantly by its exposure to an array of end-markets. Despite the tepid outlook for the tech sector, the company has the benefit of having a diversified operating model. For instance, notwithstanding a global economic downturn, the downside risk of potential order delays from customers in the consumer electronics is curbed by the robust industry prospects in the automotive segment.

OCBC further notes that Memtech can rely on the ramp-up of existing orders in the automotive space, and new orders from both new and existing customers to boost revenue growth in 2016.

Meanwhile, the gradual shift in product mix over the next three years from decorative to high-precision functional components will contribute to a higher gross margin.

Additionally, Memtech’s ongoing automation investments are set to drive up productivity, and limit wage pressures faced in the company’s China production plants.

Join Singapore Business Review community
Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.